WAR FINANCE IN BRITAIN

Press, Volume LXXVII, Issue 23482, 10 November 1941, Page 6

WAR FINANCE IN BRITAIN

EFFECT OF TAXATION ON PRODUCTION

LONDON, November 7. While' wage-earners and salaried workers throughout Britain were just receiving staggering details of income tax deductions, which will be made each pay day for the next year, the latent weekly Exchequer return reveals that supply costs are now nearly £15,000,000 a day. It is obvious that the next Budget will be faced with commitments far greater even than those for which the present enormous taxation is intended to provide. Experts agree that much depends on the results of the savings movement, but the savings position is unlikely to be improved by the latest increase in income tax, which is currently making its impact and which affects 2,000,000 new taxpayers. Meanwhile, from many quarters there is renewed concern at the deterrent effect of the onerous taxation on war production. Farm labourers, for instance, discovered that their recent increase in wages brings them into the taxation group, which will mean that most of any overtime pay they earn will go to the Treasury instead of their own pockets. . “The Banker’’ says: “Joint assessment of married couples is a particularly flagrant case, as it removes an incentive for married women to take up factory work at normal wages. The Government’s present finance methods make it impossible for the nation to reach its potential maximum output.’

TRADING BANKS PRAISED

MR NASH’S COMMENT IN SYDNEY

“DOING BETTER JOB THAN WE COULD”

SYDNEY, November 8. The activities of the trading banks in New Zealand were praised by the New Zealand Minister for Finance (the Hon. W. Nash) in an address to union secretaries at the Trades Hall. "There had been some argument in our party,” he added, “about taking over the trading banks. Personally, I think these banks are doing a better job than we could make of it.” Mr Nash pointed out that Australia and New Zealand could not continue a trade fight. He failed to see how one country could pay for goods without sending goods in exchange. Related currency schemes might help to solve the disparity in the trade balances. Mr Nash went on to refer to the war. He said that if it were not won by the Empire forces, then the work of the trade union movement for 100 years would go overboard, together with all privileges, living standards, and human freedom. He explained New Zealand’s war objectives and the effect of conscription on the manufacture and output of munitions and military supplies.

ESPIONAGE FOR CHUNGKING

CHARGE AGAINST NANKING OFFICIALS

NEW YORK, November 7. Mr Cheng Wen Yuan, Vice-Minister for War in the Nanking regime, has been arrested on a charge of espionage on behalf of Marshal Chiang Kai-shek, reports the Shanghai correspondent of the Associated Press of America. Other high officials of the War Ministry are stated to have been arrested following the discovery of an alleged plot to inform Chungking of Japanese movements.

LABOUR UNREST IN AMERICA

RAILWAY WORKERS ON STRIKE

(Received November 9, 10.40 p.m.) (U.P.A.) WASHINGTON, Nov. 8. President Roosevelt has created a special emergency board to mediate in the dispute between the Railway Express Agency and the International Brotherhood of Teamsters. He telegraphed to the president of the union, Mr Daniel Tobin, requesting him to send the members at present striking in Detroit back to work within 48 hours, saying that they were interfering with the defence programme, and threatening to interrupt inter-state commerce by the strike in eight major cities. Mr Roosevelt added that a reply by to-morrow morning was essential. A message from Chicago states that five railway brotherhoods have fixed December 12 as the deadline for a strike. According to a message from Indianapolis. Mr Tobin has refused to accede to President Roosevelt’s request to order the railway express workers on strike in Detroit to return to work. The United States Navy has told the American Federation of Labour, building trade unions that their 1435 members on strike must return to work on 10,000,000 dollars worth of defence projects by Monday, or be replaced by other workers.

HALIFAX STILL A BRITISH PORT

COMMENT/ON UNITED STATES REPORT

OTTAWA, November 7. Halifax is still definitely a British port and both British and Canadian naval units are operating in the North Atlantic, the Canadian Minister for the Navy (Mr A. L. Macdonald) told the House of Commons to-day. He was replying to a report from the United States, read by Mr Paul Martin, that British warships had been withdrawn and the United States had taken over the defence of Halifax.

BRITISH DUKE MAY BE INTERNED

(Received November 9, 11.20 p.m.) (U.P.A.) LONDON, November 8. The Duke of Bedford, who recently wrote a pamphlet advocating a negotiated peace with Germany in the event of Russia’s defeat, when interviewed by the “Evening Standard,” said he not only expects to be interned, but was not entirely averse to this, because it would be proof of the sincerity of his views. If the Germans were surrounding his home he would not fight to save it. That would be against his principles as a Christian and a pacifist.

Work of Minesweepers.—On a visit to a graving dock to-day the First Lord of the Admiralty (Mr A. V. Alexander) paid a tribute to the work of the minesweepers. He said that if he could only publish the number of mines which had been swept up round the coasts of Britain it would show that if it were not for the minesweepers Britain would not have been able to deal with the submarine, menace.— London, Nov. 7. Iceland’s Government.—The Icelandic Government has been defeated for the second time in 16 days.. The Prime Minister, M. Jonasson has handed in his resignation.—Reykjavik, November &