BUDGET DEBATE

Greymouth Evening Star, 1 May 1925, Page 5

BUDGET DEBATE

MR SNOWDEN’S CRITICISM. .Australian and N.Z. Cable Association.! —— LOND,ONj April 29. •>. In the House of 'Odmm'ons, 'duiilig tho committee stage . Oil' the j Budget, Mr Philip Snowden (former Chancellor, of the Exchequer) declared/'that’ 1 i. the increased expenditure provided for was not justified. The expenditure on the Navy should have been reduced, instead of being increased. “This j3udget, apart from the was the worst rich mari’S" Budget tlidt had ever been introduced/ The pensions sclieme -would impose a burden of £14,000,000-annually on the industries of the country, and this .at.a time of unparalleled iiidiisErial■ddpiOssipn. Sir Alfred Mbn,tl said. that he doubted' the wisdom of' returning ''.to?'gold payments. He deplored the burdens that -were to be laid upon- industry by tho growing .syMeips 1 of’ A social ance, while, he said, the silk duty would injure one of their most important textile industries. , Sir Robert 1 Holme championed - the proposals. He declared that a preferential system had 1 beeii of immense benefit to British trade. He added: ‘We see, from the events in South Africa, the result of our failure to give reciprocal terms to, a country like that.” „ The, House of. Commons read lor the first time tho Gold Standard Bill, and the Widows, "Orphans and Old Age Contributory. Pensions Bills, GOLD STANDARD. LONDON, April 30., The probable- effects of a return to the gold standard on Australian exchange is arousing considerable interest in banking circles. Several leading Australian bank officers .were inter, viewed. The genera] opinion seems to .be that the exchange rate oii Australia, will get easier. Que declared that it should result in lowering the premium either way to the cost of a shilling, and about seven weeks’ interest. Bankers consider that the easing of the exchange will not greatly influence Australian trade, as the volume depends chiefly on the ability of the. public to purchase goods, and the question of exchange does not arise. But the resumption of the gold standard and reduction of income tax are likely to improve world trade, increase the public spending power, and Australia will share therein.

BENEFIT TO AUSTRALIA.

SYDNEY, May 1. According to an official customs statement, the restoration of preference on sugar entails an advantage of 46/10 per ton for Australian sugar, raising it from 38/10 to 85/8 from July 1. The “Herald,” referring to the high exchange rates between Australia and New Zealand, says : If gold is procurable in New Zealand it will cost not less than two per cent to transfer it to Australia. In such case, a return .to a rate of,exchange approaching that between Sydney and Westralia. would beprobable. 'The “Herald” givOs as re'a. son for the high exchange between the' Commonwealth and the Dominion, the fact that goods taken to New. Zealand from Australia far exceeded those taken to Australia from New Zealand,...‘‘Practically we sent twice as much as we received” (the paper adds). Some adjustment has been made through London, but insufficient tfi correct exchange.