RETRENCHMENT.

Press, Volume LVI, Issue 17015, 11 December 1920, Page 9

RETRENCHMENT.

A BRITISH DEMAND. (Bv Cable—Pres3 Association —Copyright.) (Australian and X.Z. Cab.c- As-icoat-on.) LONDON, December 9. In the House of Commons, Mr Austen Chamberlain said that, in the Cabinet's opinion, tho only method ot I effecting savings was by reducing tho ' war debt. (Cheers.) The Ministries of Shipping, Fcod, and Munitions would be wound up this financial year. The question of economising in the Middle .teast would he thoroughly explored, j wiiu a view to drastic reductions. He hoped that Mesopotamia would be eelt- : supporting in a short time. As regards j naval construction, there would be no I programme of new construction until tho'"lessons of the war were definitely , ascertained.- Tho Committee of Im- j porial Defence was proceeding immediately with exhaustive investigations. No programme of capital ships would be presented until tho Committee re--1 j ported. I ECONOMY TO BE EXERCISED. (Received December 10th, 7.23 p.m.) LONDON, December 9. In the House of Commons, the Right Hon. G. Lambert, in moving his motion to rest-riot- the expenditure next year to &03 millions, violently attacked the operations in Egypt, Palestine, and Mesopotamia. Tho expenditure, he said, must come off in chunks. Mr Austen Chamberlain, replying, 1 admitted that the Government was on its trial, but the House also was on trial. It had to be decided whether wo wero to ho governed by irresponsible clamour or by the Commons. In England. sinco the armistice, the expenditure had been reduced from 3150 mil- . lions to 1232 millions. This Avas a re-1 markable achievement. He admitted that there was genuine anxiety regardr | \ ing the prospects. The over-hopeful, ! ' over-confident', over-borrowing, over- ; trade, and over-speculation of six j months ago had been succeeded by a re- j action. Trade now was stagnant and j orders hard to obtain. _ Nevertheless, ; 'he and his advisers believed that tho ' Bud cot would substantially realiso ex- j pectations. No other country in Europe could show a parallel. The only other country paying its way was Denmark. An of 808 mil- j lions would bo reached without malt- , ing any provision for unemployment, j housing, or the cost of a single soldier, | sailor, or airman. He wound up _ his speech by reading a number of decisions of Me Cabinet regarding next year's expenditure. (1} No new social reforms were to be carried out involving a burden on tho Exchequer or municipal rates. (2) The spending departments were to be instructed that, except with the j Cabinet's approval, schemes involving ; expenditure must remain in abeyance. Tho House, by 321 votes to <G6, re- , jected tho motion, and carried an amendment, in general terms, urging the Government to prepare next year's Estimates with, a view to the greatest economy.