A BACKGROUND TO THE NEWS

Dominion, Volume 30, Issue 173, 19 April 1937, Page 7

A BACKGROUND TO THE NEWS

British Budget

The British Budget is to be presented in the House of Commons to-morrow by the Chancellor of the Exchequer, Mr. Neville Chamberlain. The presentation of tbe Budget is one of the most important events of a Parliamentary session. Generally in April the Chancellor lays before the House a statement of the actual results of revenue and expenditure in tbe past financial year showing how far his estimates have been realised and what surplus or deficit there has been in the income as compared with the expenditure. This is accompanied by an estimate of what the revenue is expected to produce in the ensuing twelve months supposing the taxes and duties remain unchanged, and also an estimate of what tbe expenditure will be. If the estimated revenue, after allowing for normal increases of the principal sources of income, be less than the estimated expenditure, this is deemed a case for the imposition of some new or an increase in some existing tax or taxes. On the other hand, if the estimated revenue shows a large surplus over the estimated expenditure there is room for remitting or reducing some tax or taxes, and the extent of this relief is generally limited to the amount of the surplus realised in the previous year. The estimates of expenditure are divided into two parts, the consolidated fund services and the supply services, the first comprising the civil list, debt charges, pensions and expenditure relating to the courts of justice, while the supply services include the remaining expenditure of the country, such as that of the army, navy, civil service and other State departments. The Consolidated Fund services are an annual charge fixed by Statute and alterable only by Statute, but the supply services may be gone through in detail item by item by the House of Commons, which forms itself into a committee of supply for the purpose. These items can be criticised and reduced but not increased by amendments proposed by private members. The Committee of Ways and Means, also a committee of the whole House, votes the supplies when granted and originates all taxes. The resolutions of these committees are reported to the House, and when'the taxation and expenditure obtain the assent of Parliament the results as thus adjusted become the final Budget estimate for the year and are passed as a Finance Act. This system of annual review and adjustment of the public finances is followed in most of the Briitsh overseas Dominions, including New Zealand. Not only do Budget changes affect the pocket of the taxpayer, but the Chancellor’s Budget speech is often the occasion for announcing some new policy involving, as new policies are prone to, additional expenditure for which financial provision must be made. Monroe Doctrine The Monroe Doctrine, to which tbe Canadian Minister of Defence, Mr. lan MacKenzie, has referred, is one of the most important political declarations in modern times. It is remarkable in that it is not embodied in an Act of the Congress of the United States of America, is not part of the Constitution of that country, and is not part of the body of international law. President Wilson put the position in a nutshell when he said: “The Monroe Doctrine was proclaimed by the United States of America on her own authority. It always has been maintained and always will be maintained upon her own responsibility. In brief, the Monroe Doctrine, backed by all the resources of the United States of America, says to the rest of the world. •Hands off the American Hemisphere.’ ” It was adumbrated in the farewell speech of George Washington, the first President of the United States of America, and by Thomas Jefferson, the third President, but really came to a head during the admistration of James Monroe. The young republic had always feared that powerful European nations might establish colonies in the Western Hempisphere and so prove dangerous neighbours. This was partieularly marked during Monroe’s period of oilice. After leaving the army and studying law under Jefferson, then Governor of Virginia, Monroe was in turn a member of the Virginia Assembly, of the United States Congress under the Articles of Confederation, of the State Convention which ratified the Federal ■ Constitution, and of the United States I Senate under that Constitution. He was successively Minister to France. Spain, and England, and Governor of Virginia for several terms, Secretary of State and of War under President Madison, and finally was the fourth Virginian out of the first five Presidents to hold the highest otfiee in tbe American Republic. It was in 1816 that Monroe was elected President. The Monroe Doctrine has formed the basis of American foreign policy for over 100 years. Its first formal expression is found in the message of President Monroe to Congress on December 2. 1823. The occasion which called it forth grew from the revolt of the Latin-American colonies from Spain about 1815, and the creation of new republics in Mexico, Central America, and South America. Curiously enough, the greatest attackon the Monroe Doctrine in the past decade has been from the Latin-American republics themselves. Argentine, Brazil, and Chile have viewed with anxiety what they call the dollar diplomacy of the United States of America. The American Government has at times intervened in the affairs of Haiti, San Domingo, Cuba, and Nicaragua to bring about a peaceful condition. This has brought about the charge that the United States of America under the Monroe Doctrine has sought to superintend the affairs of the Latin-Ameri-can republics, assert an overlordship, and to make the United States of America power a test of right in the Western Hemisphere. The United States of America Government has always promptly disavowed any intention of imperialistic designs on Centra! or Soinh America. The Reichsbank The Reichsbank. the president of which has been on a visit to the governor of the Belgian National Bank, is the central bank of Germany, corresponding to the Bank of England in Britain. It was founded in 1575 following upon the unification of the German Empire. Under its original constitution its management was divided between its shareholders, acting through a committee, and the Govern” ment, but the latter exercised the real control. The Reichsbank did not develop like the Bank of England, but was founded as part of the sot scheme ot the German Empire. Hence the ■•lose control exercised by the State and its assumption of various duties which in England are performed by other organisations.