BRITISH WAGE CUTS

Grey River Argus, 14 September 1931, Page 5

BRITISH WAGE CUTS

SAVE MONEY LENDERS I Taxes on Low Salaries MB SNOWDEN EXPLAINS. (British Official Wireless.) RUGBY, September 12. ' Mr Snowden to-night broadcasted a I talk to the nation on the Emergency Budget. Ho explained that the Budl get he introduced last April was, as he stated at the time, a makeshift. 'He had waited to submit a new BudI get until he had the support of the recommendations of the Economy Committee, whose members were nominated by all three political parties. Meantime the financial situation got progressively worse. Mr Snowden described the stages of the British financial crisis following the grave difficulties experienced in Austria and Germany in June and July, and explained the nature of the danger with which the country was faced. BONDHOLDERS’ PROTECTOR. Mr Snowden told the listeners that they could form some idea of what calamity they escaped by remembering what happened to Germany, Austria, France and other countries. British holders of French war loans knew something of what depreciation meant, as four-fifths of their interest had been taken away by the depreciation of the franc. The choice, roundly, was between a Budget with unpleasant economies and heavy taxation, and a paper currency worth no stable value, meaning ruin more or less for everybody.

“I know,” he said, “the sacrifices you are being called upon to make are to you real and tangible, while the ruin, which would otherwise overtake you, is not so obvious, but it is just as real. ’ ’ To restore confidence in British credit, the Budget had to be balanced. It had got into an unbalanced condition mainly through the call upon the Exchequer for the relief of unemployment. The trade depression had also reduced very heavily the yield of taxes. The Government had decided to cease borrowing for unemployment, and to meet the cost of relief out of current revenue, although it would add GO millions to the expenditure in a full year. They had to recognise in a time of great trade depression that the country could not afford the expenditure which might be* incurred in prosperous times. The Government’s economies amounting to 70 millions, were severe but not intolerable. DEFENCE OF THE CUTS. Mr Snowden defended in detail the cuts in the unemployment benefit and in the salaries of teachers. Regarding the income tax changes, he stated that four millions more persons would have their incomes brought under review. Only one and a half millions of these would pay the tax, and the tax would be small. The contribution he was asking from people with incomes of £2OO to £3OO, was not large, and he believed they would not complain making it to the national need in the emergency. GRATITUDE TO BANKERS. The Chancellor described the talk of a “banker’s ramp,” as “unadulterated nonsense.” If the facts were known, the country would be eternally grateful to the Bank of England for tho efforts it had made to fulfil its duty as custodian of British credit. “The industrial depresison is slow to lift,” concluded Mr Snowden, “but the country has come through hard 1 times triumphantly in the past to an | era of greater prosperity.” It would I happen again if the people showed true patriotism. . CAPITALISTS REASSURED. RUGBY, September 11. The Stock Exchange as a whole, today reached favourably to the Budget. British funds lecorded appreciable advances. The Government ’s taxation and economy proposals has generally a good reception. Financial opinio n reacted. favourably to the Budget. Judg ing from the foreign pres s comments reaching London other countries, including B.itish, Dominions, are also greatly impressed by the unequivocal manner in which taxation has been tackled. Typical remarks are those of the “New York Times” which describes the Budget as “a, striking testimony to tho determination of the British people to keep at all costs their public finances in order.” and the South African “Cape Times,’’ which regards it as “a brave honest, effort to meet a serious situation.” PARIS. September 11. “Le Journal” says: “England’s friends, particularly in France, will follow the Government’s efforts at re habilitation with interest, all the livelier in that consolidation of Britain’s credit is one of the conditions most essential for a return of the world’s prosperity; ’ ’ • This comment is typical of the attitude of the French press to the Bud get.

Premier’s Claim TO BE STILL LABOUR’S SPOKESMAN! RUGBY. September 11. Mr MacDonald, moving the second reading of the- National Economy Bill in the Commons, said the general policy of the Government haj received the sanction of the House that, they were now setting their heads to the details'. The emergency had been allayed for the time being, but the financial posiftio n has to be made sound as well as the Budget balanced. While new resources’ were being put into the Treasury, economy must also be made effective, and the Bill giving

the Government power to issue the | accessary Orders-ln-Couucil, constitute I«d a procedure as drastic as the sav- ' tugs which were being effected- The ■ schedule in the Bill dealt with de-

partments which would be affected by these Orders-in-Counc-ilk The figures of the scheme worked out as follows: —7O mililion s had to be found by economies, SO millions by taxation, of which 57 millions, considerably more than half, had to be found by direct taxation, and 20 millions was the provision made for a sinking fund.

Continuing, the Prime Minister said that when the new Government came in, they were - greatly aided by the work done by their predecessors, who | proposed a cut, not of 70 millions, bnt |of 56 millions. He understood that the Opposition intended to fight tho 'Government's programme right thriough, but he must emphasise that they were opposing the policy that had been begun by the previous Govern- ; ment before its resignation. The Prime Minister concluded:— /'The ex-Ministers now in Opposition could no-t remain free from responsibility for a large proportion of the drastic cuts, which had been iniruuuced. He said that in the background was a conversion. scheme, not exr.l mated as yet. but whi: h would be launched at the earliest possible opportunity, and was going ti effect considerable savings. Ono dramatic moment occurred during the speech, when the Prime Minister remarked:—“l speak for Lab our,” and being interrupted bv tie Opposition, exclaimed “They can take th© label from my back but they cannot take it from my mind.”

Dealing i n detail with departmental econom-.es, the Pr.me Minister mentioned that Airship R.IGO was to bo disposed of and tho Cardington perndrome placed on the care and main tcnance basis The airmasts nnj equipment in various parts of the world built to facilitate airship flights would oe reduced to tho same c tatus. Referring to the cuts i n unemployment relief, the Prime Minister said that- they considered it the impora tive duty to put unemployment fin ance on such a sound position that everybody having financial transactions with Britain, especially in the form of loans, would be satisfied that her financial fabric was sound. Several members of both side* of the House spoke after the Prime Minister. and the debate will be continued and concluded on Monday. TAXES ON AUSTRALIAN STAFF.

“THE LAST STRAW.” LONDON. September 12. Right Hon. Mr J. H. Scullin, Federal Prim? Minister, cabled here, rejecting a plea by the Australia House staff for the Federal Government to consider the twenty per cent, eu* imposed. “W e are caught both ways,” said a member of the staff, commenting on the effect of the English Budget. “This, on top of the Australian reduction, will be the last straw.” LONDON, September 11. The Board of Trade returns shows that imports decreased by 14,591,000. and exports by £13.640.000, and re-exports by £2.942,000. The principal decreases were:— Imports: Grain and flour £836,000, meat £1,156.000. other food and drink non-dutiable £2,377,000. wood and timber £1,278,000, wool £1.447,000, oils, fats and manufactures £1.366,000. Exports: Food and drink £924.000 coal £587,000, iron and steel and manufactures thereof £1,432,000. machinery £1,333,000. cotton yarns manufacturers £1.925,000, woollens ditto £1,225.000, vehicles £1,379.000. Labour Challenge TO ATTACK ON THE MASSES. AND ORDER-IN-COUNCIL RULE. (Received September 12 at 5.5 p.m.) LONDON, September 12. In the House of Commons, Rt. Hon. IJ. R. Clyues CLabour) moved an I amendment in regard to the Budget | policies as follows;— “That this House, while recognising the necessity of preserving the country’s finances on a sound basis, cannot accept the Budget proposals deprising the mas-es of the people of the necessities of life while others remain in the enjoyment of luxuries, thus aggravating the unemployment by restricting purchasing power of the wage earners; nor can this House approve of the Government's Bill abrogating Parliamentary control by authorising Or-ders-in-Council that are designed to supersede existing Acts of Parliament, or to reverse a settled policy without the House’s specific assent.

Right Hon. Tom Johnston (Labour), speaking in support of the amendment, said that the Government were now creating a class war.

There were further recriminatory passages when Rt. Hon. Mr J. H. Thomas revealed that a sub-committee of the late Cabinet, including Mr Henderson, proposed cuts in expenditure of seventy-eight millions, not fifty-six millions. The debate was adjourned.

Fiduciary Note Issue CONTINUED IN BRITAIN. (Received September 12 at 7 p.m.) LONDON, September 11. The Treasury has issued a Treasury minute which authorises the fiduciary ! note issue of 275 millions sterling by the Bank of England for a further period of three months. The previous period authorised was three weeks. SEAHAM’S CALL. FOR MACDONALD’S RESIGNATION. Sept. 13, at 5. 5. p.m) LONDON, September 12. After three hours of discussion at a Delegate meeting, the Seaham Labour Party, by 40 votes to 39, confirmed its Extecutive’s resolution requesting the Prime Minister, Mr Ramsay MacDonald, to resign his seat in Parliament, as member for Seaham.