GRAVE WARNING

Grey River Argus, 12 May 1932, Page 5

GRAVE WARNING

MORE CUTS Coming in Britain (Received May 11 at 7 p.m.) LONDON, May 11. Mi- Neville Chamberlain (Chancellor of the Exchequer) responding to the toast °f the Government at the Bankers’ Annual Dinner, said that tariffs alone would not cun* their difficulties. Industry, aided by the Government’s, monetary policy, must do this. Stcri ng was no longer anchored to gold, it had. he said, not materially left the level that was suited for the needs of industry. The equilibrium of sterling was at present, however, unstable. There was a tendency for existing great accumulations of liquid capital to concentrate in storing exchange. j his disturbed the traders in Britain and equally in India and in the other countries with currencies linked to Britain s. He hoped special measures, like the new Exchange Equalisation Account, would later become unnecessary.

The Government, he continued, desired to do -everything to raise the sterling prices of goods to a level permitting remunerative trade, but this could n ot be accomplished without in<ernational co-operation. Mr Chamberlain added: “It may be one of the objectives of thy Government to take such steps as they find possible in order to raise the sterling prices level, thus making it possible to conduct trading remuneratively.” He emphasised that his late budget had approached the limits of the amounts that were obtainable by direct taxation, but any real relief for the taxpayer would involve changes of national policy that were not contemplated. Nevertheless, if more drastic reductions of expenditure were necessary, responsible citizens could be trusted to support the Government. Judging from the headlines in the newspapers, they attach the utmost importance to Mr Chamberlain’s speech, which is described as “a grave warning. ’’ The “Sun” understands that the Government is preparing for further economies total.ing in the neighbourhood of fifty millions sterling, and involving cuts iu education, in research, in housing and in several State subsidies. Price Stabilisation AIM OF TARIFFS AND INFLATION. (Received May 11 at 7 p.m.) LONDON. May 11. In the House of Commons. Mr Elliott replying said the Government would do their utmost to co-operate with friendly nations both inside and outside the Empire. The Government had embarked on two great policies which were contained in the Finance Bill, and which dealt with tariffs and with currency. But these were not being used either to inflate or to deflate the currency. or for the purpose of economic war with other countries. The sum was inadequate for such a purpose, but it would check fluctuation and give us a period of smooth water. The Finance Bill was read the second time by 465 votes to- 47. The resolutions authorising rhe silk duties weiie. carried by 275 to 36.