HOMELAND BUDGET

Greymouth Evening Star, 29 April 1925, Page 5

HOMELAND BUDGET

7 ■'- - 1 ' ’ ? ■ GOLD STANDARD RESUMED. ■;' 7 ; J'.-';; ■ / ’’ K ' ' ’ „ ‘ ’ -1-/.; ‘‘J* • OTHER IMPORTANT.'PROPOSALS. ' ■■■■■■ : ’ ' ;• '- V . ...; ’, •’ I (41 stralian and ’N;Z. Cable Association.) '■ / ■ p 1 ' ■ 7"’. ... 1 4- ,-J 7. 7,7". / ’ '. -J . ■ LONDON, April 28. ' Mr Churchill in his’budget announced that’the‘Act prohibiting 1 the iexportof g6ld would lapse on 1 31 next, and the ■•old 'Stafidard' jWould-ibe resumed"• froin ito-day. This ■ rin sails tt; speoial/licensb' tb the Bafik of Ellglahd to export; gold- and 'bullion; pepdihg the formal -lapsing of'the'T’92o Act. '■. Mr Churchill announced the ! appl'-ca-tion of the' 1923 Imperial preference proposals in regard to heavy' sparkling wines, dried fruits, and sugar, fromJulv’l. ’ > - '- ■■ 1 ■ ( ’, ■ The chief points in the budget are,< the’surplus bf ‘tWenty-six millions bh ■ the present basis of -taxation. Death duties'on big estates are to be, in- i creased... The McKenna duties on < luxuries are' to be restdred on July ? 1. New duties are tb be paid on jm- 1 ported hops, Arid liatiiraf. and 1 ' a’fti-, 1 ficial silk. A new contributing social ' insurance scheme is to' ’'commence iig, J 1926, providing old age ...pensions at • the age of '/sixty-five ■d&r, J)eri- --l sibns '• fo'r; Widows, plus ailbivahces for children. Iricofne tax 'is 1 to be re- j. iluced sixpence, and small income tax ; payers will be allowed orfe-sixth j instead of one-tenth from earned' in■coinc/ There will also be a reduction v in tire super tax.. 1 ' ••• /

The Bank of England is to-day enir powered to export bullion. A bill making' notes convertible to coin at the bank’s option is being intrioditced. The Dominions are returning "to the gold standard,', simultaneously. Australia is /" ‘ 7

MR CHURCHILL’S STATEMENT. REDUCTION OF BeBT. , •’ (Rquter.) ‘ 7 • ■ LONDON', April'2B.The ; Common s was packed, aiid excited, in anticipation of the ' Bud'g it statement," 1 The Front Governhier.t ■Bench was filled with members of the Cabinet, and members of all parties overflowed the side galleries. There was a big 'muster in the Peers’ Ga'lery. Mr Churchill was loudly cheered on rising. He paid a tribute t'o the careful, scrupulous finance of Mr Siiowden (Labour Chancellor), and pointed butthat the realised Surplus of’ £3,569,000 Was ■ reffiarkably Close to the z Budget forecast of £4,024,000. Spirits arid to-. bacco produced two 'millions less than the estimate, but beer increased by a

milion. The remission of sugar duty had fully reached tjie consuiper, but. the remisison of 1 tea duh' had been almost entirely extinguished by the higher prices. Inland re'yenue duties showed a surulus over estimates of over £6,816,000. 'l'lie surulus would be devoted to ledemptiou ' of debt. The nominal deadweight debt had decreased front 7680 millions to 7646 millions during the financial year. It was;inost important that the policy of debt repayment should continue. The floating debt'had been reduced"by 324 millions,' and external debt by four millions. Savings certificates produced thirtytwo milions gross, allowing a net iiti crease of nearly threAmilliqps; Savings bank deposits by eleven inillions. The intertstjon 'tlie Datiorial debt'had been reduced 'in live years by 1 over 4eveiity in illiori/' parity? The rate of Goveniinertt borrowing had fallen from 6| to 44 pci - -cent., enabling profitable ' conVershui bperatibiis. Much large!- ojieratioiffi of-'this' sort were pending,.'from.‘which taxpayers' wbiildrealise* iniportaiit saving's? The'h'cw sinking I’tind /.would be; increased to' fifty millioris.' The capital' value of war peiisioiis' liability'.was nbw 760 inillions, and tbc R annual chari'ge 87 iriil.lions-; coniparbJ oyer a. thousand millions, aiicl?oyer 'llO million's alter the war. '"7* " 7.. “

; I MR. BRUCE’S STATEMENT MELBOURNE, April 29. Mr. Bruce announced that the arrangements have been completed by the Commonwealth Government; for Australia to returh to.the- free export of gold concurrently, with great Britain. He explained that it was hot intended to substitute /gold for notes in internal currency'. Tlie use of gold by individuals would tend to deplete the, gold reserves held by banks. ' ' It would be necessary to economise in the use of gold for internal purposes in all countries. f STERLING ALMOST AT PAR. NEW YORK, April 28. The. demand for sterling advanced to four dollars eighty-three, the highest for ten years within’ fifteen minutes after the news of Britain’s return to the gold standard. GOVERNMENT TRADING LONDON, April 28. The -report of the Auditor-General on Government’ trading departments for the year ended 31/3/24, MioWs that the Wheat Commission’s nett loss was 138 millions .sterling, representing approximately the cost of thb' bread subsidy. Homegrown timber supplies involved a' loss of 61 millions sterling. The loss on tftidc' in zinc concentrates was over two millions sterling. There was an increase during the year of £386,000 in the reserve of threequarters of a million provided to meet losses in 1923-24, concerning which it is commented that, it 'is impossible to forecast what the ultimate loss on service will be, but provision ’’of £71)0,000 is thought sufficient at present. It is likely that the fall will be considerably below the ultimate losses on contracts with British, smelters.