“MISTER DEFICIT”

Greymouth Evening Star, 14 April 1927, Page 5

“MISTER DEFICIT”

LLOYD GEORGE ON BUDGET CHARACTERISTIC METAPHORS tAuatraliar 4 N.Z. Cable Aaan.) (By Cable—Press Assn.—-Copyright.) LONDON, April 13. Resuming the Budget debate, Sir Robert Horne (ex-Chancellor) said that Labour was disappointed because it had not found a miserable Chancellor in a white sheet. He sympathised with Labour, :and congratulated Mr. Churchill on the series of clever contrivances by means of which he had succeeded in climbing a precipice. At the same time, the burden of 874 millions was impossible for this country to bear, and no one could look to the future with any hope, if that figure were to become normal expenditure. Mr. Lloyd George said that he was disappointed with Sir R. Horne’s speech. Mr. Churchill stood in danger of going down in history as “Mr. Deficit.” There was no apparent provision to meet the expenditure in connection with. China. It was a great mistake not to budget in anticipation of the troops remaining in China some time. The new taxes were feeble, miserable and annoying. Thirty millions had been described as* windfalls, but they were tree shakings, not windfalls. There were one or two apples not ripe, and anyhow they did not come out of Mr. Churchill’s orchard. Mr. Churchill apparently believed with R. L. Stevenson that it was better to travel hopefully than to arrive. He had aimed at economy, but the sturdy figure of the First Lord of the Admiralty stood in front of the target causing him to miss his aim. The abolition of three departments was a first class mistake. Real economy lay in the direction* of armaments. A Minister was sent to Geneva to ask others to reduce armaments, while we were increasing the navy. We were accused of hypocrisy, and there was a certain element of truth in this. Britain was confronting nations which were without our burdens, hence tlie Budget was misleading, irrelevant and unhelpful. AIR CHURCHILL’S REPLY. LONDON, April 13. Mr Churchill replying, in the Commons, to criticism of the Budget, claimed that discussion showed almost 1 unanimous approval of the financial proposals for the year, though the 1925 Budget, which was full of good things, resulted in his being almost hounded out of public life. The present cost_of central government was only 157 nullions out of 817 millions. The same service would have cost ninety-six millions before the war. Making allowance for the value of money, they were costing ten per cent less than .before the war. (Ministerial cheers). Members talked of , economy, but when there was any specific proposal they criticised it in a tone of unwonted asperity. The size of the Army was not excessive in view’ of the needs of the Empire, and before there was any large reduction in the Navy, the country must decide whether to abandon the one-Power standard. There are three great naval Powers in the world, but fortunately they live in the opposite corners of the earth. If there was no great upheaval the trading results of the year must be incomparably better than, last year. He would get benefits of the results, concentrated in the income tax. The debate closed. STOCK EXCHANGE’S APPROVAL LONDON, April 12. On the Stock Exchange, the Budget, especially the increase in sinking funds, is reflected in a general advance of prices, especially gilt-edged stocks, also home rails and industrials.