BRITISH BUDGET

Grey River Argus, 30 April 1931, Page 5

BRITISH BUDGET

I GENERAL APPROVAL I _ ' Mild Tory Criticism I —— (Aus. & N.Z. Cable Assn.) LONDON, April 28. ■ * In the Commons, the debate on < the Budget, which. will last several days’ was opened by Mil Neville . Chamberlain, who recently succeeded . Air Winston Churchill, as Chairman of the Conservative Finance Comm-lt-•tec. His main criticisms of the Bud- | get were that, the Chancellor’ s esti- 1 mates were- too optimistic, that he J 'omitted to refer to the Treasury lia- ‘ l.il’ ty in respect to the unemployment 1 insurance fund, or indicate the sacri- ‘ fices which he recently declared, must < be made by all, and the proposal did 1 nothing to stimulate trade, or give confidence to industry. The main feel- 1 ( ing insp ik?d by the Budget was relief. ( 1 Sir DonaTcl Mac Lean, (Liberal) said 1 that on free trade, economy and tax- ’ ation of land values, they heartily - supported the Chancellor, and approved of his proposals as emergency ones. 1 The 11 Daily Herald’’ commends Mr i Snowden ’s budget, stating the adjust'ments made aW wise, as the end of ( the worst part of the trade depression : is in sight. It says the introduction i of a land values rax makes this budget a landmark in British financial ] history. Other city editors describe the budget as being much less unsettling than was at first fearied. Brewery and tobacco shares arc now bouyant, and oil shares have recovered a s the impost on petrol is less than ws,« expected. The principal effect on Monday ’si Stock market of laisf. niglvt’s Budget statement has been a good demand for pßiiitish Government’s stocks, which i showed sharp appreciation. There was also a rise in the sterling and dollar 1 ' exchanges, on the proposed withdrawal 1 from the exchange reserve fund. At the (invitation of the Prime Min- 1 listeii, the Liberal leaders, Mr Lloyd •* George and Sir Herbert Samuel, to- i gethcr with Sir J. Sinclair, visited 1 Downing Street, and discussed various 1 .ma tters assumed to be related mainly ' with the Budget proposals, wfcth the i Prlimc Minister. Mr Henderson and Air Thomas: “It is understood that < th-o Liberal Party particularly weTcome ; the Government’s proposal for a tax ; on land values, although it will not i come into operation until the subse- i quent financial year fund. A statement on the project will be madeTln 1 the Commons on Monday by the Chan- j . cellor (Mr Snowden.) Labour-Liberal Pact 1 MAY PROLONG GOVERNMENT’S LIFE. (Aus. & N.Z. Cable Assn.) LONDON, April 29. Political circles are convinced that a firm understanding has been reached be- j tween Mr Lloyd George (Liberal Lead- j er) and the Labourites in regard to the < Lund Bill, and they argue that this may prolong the life of the Government. ] “The Times’’ is of the opinion that j the Budget, marks the failure of free ( trade finance, and that it makes a ( tariff imperative. the proposed gold shipment and the news of another New South Wales dci fault. The “Financial News” says: “Lon- ». don banking circles are of opinion that j Air Scullin’s proposal about the gold . shipment is thoroughly undesirable. The ■abolition of the Australian gold backing ( would do further damage to th ■ waning credit of the country, and be a serious ’ c I obstacle, to the restoration of confidence. It would remove the last vestiges ri of a gold standard, and would make a e return to that system extremely difficult. If it is true, however, that the. v I only alternative to the gold shipment is default, then the use of the gold reserve e may be the lesser evil. After all, the j(■ gold reserve was primarily accumulated o for use in an emergency, but the possi- g bility of arranging the funding or the | «'• replacement of the maturing Treasury a bills seems at present remote. The f Senate, therefore, may find it necessary I to pass the Bill, unless the Common-1 1 wealth Bank finds the money. ' r | NEW YORK. April 28. ■ 1 j Following reports that Mr Lang had threatened further interest defaults, 1 New South Wales bonds dropped to c fives 1957 off 21, 1958 46 off four. ’ Commonwealth issues strengthened slightly. Queenslands showed no sale. TRADE BALANCE IMPROVES. ADELAIDE, April 28. Addressing a meeting of business i people, M r Theodore said that the. s year before the Federal Government < I came into office, imports totalled 153 1 millions sterling, but this year they j ' aggregated seventy-two millions. Ex- ' ports this year would reach eighty- i nine millions, leaving a favourable 1 1 trade balance of seventeen millions. 5 . He claimed that the Government had 1 effected economies in administration 1 since coming into office, totalling four 1 i millions sterling. It was proposed to introduce legislation basing values 'mJ I imports on Australian currency. I ? I Mr Theodore said that if the causes' 1 i of the depression continued indefinite-' J j ly, Australia was going inevitably to, I Utter ruin, but reliable opinion had J I been expressed th alt the bottom of I 'the depression had been touched, andj * j there would be an improvement in ( i prices for the Commonwealth’s pro- 5 | duets. '