Manawatu Evening Standard. TUESDAY, APRIL 21, 1936. THE BUDGET TO-DAY.

Manawatu Standard, Volume LVI, Issue 119, 21 April 1936, Page 6

Manawatu Evening Standard. TUESDAY, APRIL 21, 1936. THE BUDGET TO-DAY.

Ix the House of Commons to-day the Chancellor of the Exchequer, Mr Neville Chamberlain, will “open his Budget.” In every other country the Minister of Einance “delivers” or “presents” his financial statement, but in the House of Commons the Chancellor opens his Budget. This expression is due to the fact that the word Budget is a corruption of the French word “bougette,” a bag. Formerly the Chancellor carried his financial statement to the House in a brief bag, or it was brought to him in such a receptacle by a Treasury official, and when the time came for delivering his statement he “opened his bag.” Another time-honoured tradition is that the Chancellor must appear in the House wearing a bell-topper. Other members may be hatless on the special occasion, but never the Chancellor of the Exchequer. Even Lord Snowden, when he was Chancellor in the Labour Ministry, conformed to this okl tradition. Mr Neville Chamberlain has been Chancellor ever since the National Government was formed with Mr Ramsay MacDonald as Prime Minister. "He startedowitli a very formidable task. The Labour Government left a huge deficit, and Mr Chamberlain, in his first year, reduced this very considerably, and it was not long before his Budgets showed surpluses. Not only so he was able to make a slight reduction in the income tax and to restore the salary cuts of civil servants. He is to be credited with carrying through with conspicuous success the greatest conversion loan in world history, the total involved being' £21)00 millions. This operation was rendered feasible by the existence of very cheap money, which in its turn was largely due to the closing of the money market to foreign borrowers. The National Government followed characteristic British methods in dealing with the economic crisis. They refused to get into a panic, or to be bustled, nor did they venture upon upon “New Deals,” but clung to the old, honest method of “paying your way” and keeping strictly to contracts. The gold sovereign has not been devalued, the gold content of that coin being the same to-day as it was in 1914, and the Bank of England is carrying on its banking business in the old traditid'nal way. the only difference being that it is prevented by law from redeeming its notes in gold," although to-day it holds the record. total of £2OI,bOU,(XK) in gold bullion. The paper pound sterling, -though only a promise to pay in gold, is to-day the “yard-stick” for measur[ing value.

We will know to-morrow the result of the financial year, The general expectation has been that there would be a surplus of about £3,000,000. Interest, however, will centre in the rearmament proposals, that is whether the money is to be raised through taxation or by way of loan. British industry would like to see the latter course adopted, for an increase in taxation just now may hamper Britain’s export trade by forcing up costs of production. Britain’s financial year closed on March 31, and at the end of three weeks the Budget is ready, notwithstanding that the figure involved runs into about £750,01)0,01)0. Our financial year closed also on March 31, and there is yet no indication of when the Budget will be ready. The reason for this difference in procedure would seem to be that in England the State finances are not made a party football, and both parties are keenly interested in sound national finance. Here the finances of tfie State form a big party problem.