“INVITING A SLUMP”

Dominion, Volume 30, Issue 131, 27 February 1937, Page 11

“INVITING A SLUMP”

Defence Expenditure

ANSWER OF LABOUR

(British Official Wireless.)

Rugby, February 25.

Speaking in the House of Commons for the Labour Party, Mr. H. B. LeesSmith refused to be reassured by the Chancellor of the Exchequer, Mr. Neville Chamberlain, or Mr. J. M. Keynes. He contended that the Government’s borrowing policy should be reserved for a time when armaments expenditure fell off and a slump threatened in order to arrest an oncoming depression. A contrary policy by which armaments expenditure and borrowing were to cease simultaneously invited a catastrophic slump. Mr. Lees-SmithZalso expressed dissatisfaction with the degree of planning and co-ordination disclosed in the speeches of the Minister for Co-ordina-tion of Defence. Out of 17 Cabinet Ministers in the House, no fewer than 13 had to answer questions concerning preparations in the event of war. There was no evidence that Sir Thomas Inskip was co-ordinating those 13 colleagues. Mr. Lees-Smith suggested the appointment of a Civil Planning Committee to work along parallel, lines with the Committee of Imperial Defence on aspects of the defence problem. which he asserted were obviously being neglected. Sir Robert Horne (Conservative), speaking later in the debate, which is continuing, expressed the opinion that the country could take £40,000,000 of borrowing in its stride. Manufacture of Gas Masks. Sir John Simon, replying for the Government, disclosed that the output of gas masks was now 100,000 daily. Great Britain was the only country in the world making this valuable provision for the safety of the civil population. Answering Mr. Lee Smith's suggestion of a civil planning committee, he said there existed already a vast general staff, mostly of civilians, for defence of the Home front. The question of food supplies was being continually studied.

“WELL WITHIN CAPACITY”

Mr. J. M. Keynes Says Cost

Can Be Met

London, February 25.

Mr. J. M. Keynes, presiding at the annual meeting of the National Mutual Assurance Company, emphasised that the rearmament loan was well within the nation's capacity and that there was no reason why it should pay more than 3 per cent, interest. He pointed out that it is a popular error to suppose that money was now exceptionally cheap. On the contrary, there has not been a single five-year period between 1837 and 1914 when the average yield from long-term gilt-edged securities has been as high, yet the existing capital a head was 50 per cent, greater. The sinking funds of public boards, the huge repayments building societies were collecting, the steady growth of savings-banks deposits, and the large sums industry was putting to reserve from profits should amount to over £400,000,000 in a single year. FOREIGN AFFAIRS Debate Next Tuesday (Received February 20, 6 p.m.) t Rugby, February 25. There will be a House of Commons debate on foreign affairs next Tuesday, in which the opening speaker for the Opposition will be Mr. David Grenfell. It is thought possible that Mr. Lloyd George, who took the oath to-day in the House of Commons, will take part. The Chancellor of the Exchequer, asked if he contemplated any modification of the present policy regarding foreign issues, told the House of Commons that experience had confirmed the view that a measure of restriction continued to be necessary in the public interest, and he had in the meantime no change of policy in mind. FOUR POWER PACT “No Such Offer Made” (British Official Wireless.) Rugby, February 25. Questioned in the House of Commons regarding the reported offer by Germany to Austria of a four-Power pact, Lord Cranborne stated that the Austrian Government had informed the British Minister in Vienna that no such offer was ever made. BRITISH SHIPPING Importance in Defence London, February 25. The Chamber of Shipping passed a resolution drawing attention to the vital position of British shipping in any scheme of Imperial defence, the grave dangers to Empire communications from foreign subsidies, and economic nationalism, especially in the East. The chamber welcomes reference of the question to the Imperial Shipping Committee, and hopes that the Empire Governments will survey the whole situation. The chamber also stresses the incursion of Japanese non-confer-ence lines into well-established trades built up by Empire shipping.

CONSERVATIVE WIN

Richmond By-election

(Received February 26, 8 p.m.) London, February 25.

The Richmond by-election, held through Sir Walter Ray’s resignation on account of ill-health, resulted: — Major G. 8. Harvie Watt (Conservative), 20,546; Mr. G. H. R. Rogers (Labour), 7709. The retiring member was a Conservative.