Manawatu Evening Standard. FRIDAY, APRIL 22, 1932. THE BRITISH BUDGET.

Manawatu Standard, Volume LII, Issue 121, 22 April 1932, Page 6

Manawatu Evening Standard. FRIDAY, APRIL 22, 1932. THE BRITISH BUDGET.

Awaited with keen expectations, the first Budget of the Chancellor of the Exchequer (Rt. Hon. N. Chamberlain) is described in the lobbies of the House of Commons as one of the dullest on record. The concession, however, is made to Mr Chamberlain that he was in a most difficult position. The historic scene in the House of Commons, on September 10, when the former Chancellor (Viscount Snowden) quoting' the proud saying. “Colffe the world against her, England yet shall stand,” set forth a scheme of heroic measures to overcome a dficiency of £74,000,000, was no doubt still fresh in the public mind. Great Britain then faced the sternest of crises, a danger real and terrible, for had not Cabinet resolutely set its face in the direction of a balanced Budget it is difficult to say what might have happened to the pound. In the opinion of one London journal it would have gone the way of the mark in Germany ten years previously, with consequences far more terrible to England than they were to Germany. But the people rose supreme in the national emergency and the year ended with a small surplus, though, as Mr Chamberlain says, the country is better off to-day by. £9,090,000 than Viscount Snowden anticipated, because of the substantially less sum taken irom the exchange account to help balance the Budget. Mr Chamberlain’s Budget illusirates the fact that though British finance has triumphed in a world of deficits the country is not yet out of the wood. Mr Chamberlain himself states the position: We are beginning* to see light between the trees, but we have far to go before we emerge into smoother ways. That is why, no doubt, his Budget falls short of expectations in the matter of relief from income tax and a reduction of the beer duty. The nation must steel itself to further hardships, and the courage of the Chancellor must be appreciated in asking the people to bear again the heroic measures of recent months. It was a disagreeable duty, but it will strengthen foreign confidence to know that Britain is determined to maintain, financial stability. A balanced Budget is the strongest evidence of that.

The revenue in this financial year is estimated at £764,300,000 and the expenditure £766,000,000, leaving a prospective deficiency of £1,700,000. This Mr Chamberlain proposes to turn into a prospective surplus of £796,000. The present Budget is of great interest because of its protectionist nature, and the Leader of the Opposition could not fail to utter a jibe at Sir Herbert Samuel and Viscount Snowden for their participation as Government sujjporters. The Chancellor estimates £250,000 from the abnormal import duties, £750,000 from the horticultural duties, and £27,000,000 from the 10 per cent, tariff. .Very shortly,

recommendations of the Tariff Committee will be enforced on commodities which Mr Chamberlain did not disclose, and a further sum of £5,000,000 is anticipated from this source. These duties will play a highly important part in maintaining stability in the national finances, though doubt is expressed whether the estimate from the general duty will be realised. The Chancellor’s proposal to establish an exchange equalisation account, to prevent violent fluctuations in the pound, and the preference for colonial sugar have attracted a good deal of interest, and the former is approved by members of the House who ‘‘consider it should help the movement toward sterling union going on all over the world.” It will be hoped with Mr Chamberlain that the recent revival of trade and employment is a hopeful augury that the worst is over. Nevertheless, he does not give way to optimism not built on a safe foundation, and it should be conceded that in the circumstances he has done right to steer a safe course.