POLLING DAY

Manawatu Standard, Volume IV, Issue 280, 27 October 1931, Page 7

POLLING DAY

ELECTION IN THE HOMELAND. NATIONAL GOVERNMENT MAJORITY? MR PHILIP SNOWDEN CONFIDENT (United Press Association—By Electric Telegraph—Copyright.) Received October 27, 8.55 a.m. LONDON, Oct. 26. “I am sure there is going to be an overwhelming majority for tho National Government,” said Mr Philip Snowden in a final survey of tho election prospects. The nation is bracing itself for a filial effort after a hectic fortnight of electioneering. Newspaper appeals oil the eve of the poll suggest that the greatest danger to the National Government is over-confidence. The latest authoritative survey of the constituencies suggests that the Conservatives will win 340 seats, the Liberals supporting the Government 70, the Socialists 195, and the others 10, giving the Government ‘a majority of 205. All Socialist prophets anticipate some loss of seats. Some admit that the Nationalists’ majority will be 90. It is noteworthy that an astute party organiser like Mr Arthur Henderson is hedging as regards the result.

Interviewed yesterday before his illness, he said that in the past it was possible to foretell the Result of an election with fair accuracy if the situation in each constituency was examined, but here—Mr Henderson expressively shrugged his shoulders, and added: “We have put our case before the people, but as regards the result, there are many unknown factors.” A certain number of election speeches were delivered on Sunday, but generally it was observed ns a day of rest for the over-taxed candidates. A British Official Wireless message says: In a broadcast address, the Prime Minister claimed that the trust - in the National Government, both at home and abroad, had been magnificently maintained.

In the changed conditions of to-day it was advisable to examine whether the pre-war policy should be modified or improved on. DEPLETED DOLE FUND. POST OFFICE SAVINGS DRAWN ON. MINISTERS’ "REVELATIONS. Received October 27, 8.55 a.m. LONDON, Oct. 26. Rt. Hon. AY. Runciman’s disclosure that a substantial part of the Post Office Savings Bank fund in April and early in August was lent to bolster the depleted dole fund, and Mr Arthur Henderson’s statement that it need not cause anxiety in tho minds of depositors, led both Mr Philip Snowden and Mr Ramsay MacDonald to reveal that the savings had been in peril, but that peril had been averted thanks to tire steps taken by tho National Government. LEADERS’ FINAL EFFORTS. (British Official AVireless.) Received October 27, 11.30 a.m. RUGBY, Oct. 26.

The election campaign ends to-night, when almost every large hall in the constituencies in which contests are taking place has been engaged for meetings, at which the candidates will make a final appeal to the electors. While the leaders of both sides express confidence in the result, detached observers look for a large majority for the National Government, the Stock Exchange market in majorities to-day standing at 195 to 200. The Prime Minister rested yesterday in preparation for to-day’s whirlwind tour of his scattered constituency. Mr Stanley Baldwin returned to London yesterday following a tour of the Northern constituencies, which, it is stated, has strengthened his conviction that the Government will secure a handsome majority. Sir Herbert Samuel remained in his constituency, in which the result of the polling is in some doubt. Mr Arthur Henderson is still confined to his room. EFFECT ON STOCK MARKETS. STERLING SHOWS RENEWED STRENGTH. (British Official 'Wireless.) Received October 27, 11.0 a.m. RUGBY, Oct. 26. The stock markets showed considerable strength throughout to-day, based on anticipations regarding the political situation. Leading British funds made general advances, ranging from a quarter to one point. The market was very firm in the foreign exchange section, and the sterling showed renewed strength. KING RETURNS TO LONDON. (British Official Wireles.) Received October 27, 11 a.m. RUGBY, Oct. 26. The King arrived in London to-day from Sandringham by train and drove to Buckingham Palace, where he will bear the election results to-morrow niglrt and the following days.

TASK OF RESTORING STABILITY

Addressing the Royal Empire Society in London recently, Sir E. Hilton Young, Secretary for Oversea Trade, made an important survey of current problems arising from depreciation of the pound sterling. He uttered warnings against exaggerating its evil effects and underestimating its gravity.

In regard to the former, he said, all that had happened - was that Britain had been driven from her front trench, but she had great reserves of wealth at home and abroad which had not yet been thrown into the fighting line. As soon as she mobilised them, speculators abroad and “funks” at home, who visualised the pound following the mark, would be driven from the field with great losses. A settled Government with a free hand was all that Britain needed for that mobilisation. The danger of underestimating the gravity of the situation, he continued, was that Britain might not rise to the fervent and strenuous effort needed to reverse the slight repulse which she had received and prevent further losses. , . , Two large and deserving classes, essential to the country’s economic welfare, said Sir Hilton Y’oung, had suffered a sudden undeserved and unexpected lass. These classes were investors and people with fixed incomes, including most salaried people. Investors had been inflicted overnight with what amounted to a capital levy, of which the gravest feature was that it was indeterminate. Having previously been bitten during the war, investors were in danger of becoming shy. The gravest aspect of what bad happened was the profound manner in

which it had affected investors’ confidence. AVhat was true of investors was also true of people with fixed incomes, on which there had been imposed a substantial direct tax, the worst feature of which was that it was also indeterminate. SPENDTHRIFT FINANCE.

Answering a question as to what had become of the values which thus had been lost to investors and people with fixed incomes, he said that the values had been lost in spendthrift finances during the past two years. “We, as a nation, have been living beyond our means,” he declared, “not earning the standard of living which we have enjoyed and overspreading both ns a nation and governmentally. In the former case, our extravagance is proved by an adverse trade balance, and in the latter case by Budget deficits, which are a direct result of extravagant expenditure on social services. Britain under the rule of Socialists has consumed the national capital, maintaining an unearned standard of living. The levy now imposed on the saving, investing, and salaried classes is evidence, and a measure of the capital consumed in recurrent expenditure. FUTURE ACTION.

“As to the future,” he said, “there is a disposition to think that now that the pound has depreciated we can spare ourselves the trouble of further effort or action. It was said that the fall in sterling, by stimulating exports and hindering imports, would correct the trade balance, revive industry, end the abnormal unemployment, and balance the Budget without painful economies. I believe that is a fatal error. If we allow ourselves to be so deceived then we embark on a course on which the pound might follow the mark to the abyss. Commonsense and experience combine to teach us that the advantage depreciation gives to the export trade is fleeting if we do nothing. Rising prices, cost of living, and wages would restore the same relations as before depreciation. Then with an unstabilised pound there would be an irresistible pressure towards fresh depreciation. Renew the export stimulus and the vicious circle would be fatally established until the country’s capital evaporated in inflation. NO GOLD STANDARD.

“A foundation of British policy,” said Sir Hilton Young, “must be the reestablishment of stability by hook or Iby crook, at the earliest opportunity, j There is no gold standard to which we I can return. There will be no dard as long as France and the United States monopolise three-quarters of the world’s gold supply. AYnat our iuture formal standard will bo, we cannot tell. It depends firstly on the possibilities of an international conference ie-o-arding the use and distribution of gold, and secondly, on the question of immediate measures to secure piactic.u restabilisation. The latter goal need, the elimination of the foices of instability which make a formal standaicl impossible. , “Tbo=e forces are an adverse trade balance and an unbalanced Budget. Measures already have been taken to balance the Budget, and exports can be stimulated and imports reduced by appropriate measures at the disposal of the Government for each purpose. “The best way to stimulate exports is by a reduction of the burden of direct taxation now ‘wet-blanketing’ enterprise. The best way to reduce imports is by a tariff—no mere 10 per cent, tariff, but one where the basic rate is considerably higher. By such measures we can stop the rot and restore stability and prosperity. There must be no illusion that it will be a pleasant process. It will involve sacrifices. We must be content with less until we have paid for our fun, or, rather the Socialists’ fun. Bad governors have often led Britain into trouble, but it lias never failed to extricate itself by good judgment and strong self-control qualities are already at work. By then continuance for a space we shall >e as sured of a happy issue. I