Manawatu Daily Times Britain’s Burden

Manawatu Times, Volume LV, Issue 7293, 1 August 1930, Page 6

Manawatu Daily Times Britain’s Burden

Tho Australian taxpayer is loudly wailing about crushing burdens and bewildering problems, and we in New Zealand are execrating the Customs duties, petrol taxes, etc. But it may comfort us to remember that the British taxpayer is a long way worse off than we are. He is just now the most heavily taxed person in the world. Indeed, taxes are so high in Britain that they constitute the most serious obstacle to the country's economic and industrial recovery. It is a remarkable fact that although the war has been over for more than a decade, the real burden of debt which the British people are carrying has increased every year since 1924. This is due to the fact that the money borrowed to carry on the war was practically flat money; that is, the nation was not on the gold standard and what the people loaned to the Government was paper pounds sterling. Now, that at great sacrifice, Britain has returned to the gold standard in order to pay off its obligations in accord with its promise, these paper pounds are being repaid in gold pounds. Added to this, and much more important in increasing the burden at tho present time, is the fact that the entire world is getting onto a lower commodity price level. Therefore every pound loaned to the British Treasury in 1920, and now repaid in gold either as principal or interest, will buy almost exactly twice as much, in goods as it would have bought at the time it was loaned. The London Economist has compiled a table which shows how this operates and which is perhaps as simple as a difficult subject allows. It shows the movement of the debt in terms of money of fixed value, the outstanding total of the dead-weight debt, and the annual charge for interest and sinking fund when reduced to 1913 pounds by means of the Economist index number of wholesale prices:—

It is clear from the above that considered in money which had the purchasing power of sterling in 1913, the debt burden on the people has increased steadily since 1921 In plain fact, it hears nearly twice as heavily as in 1929. This is tho price the British people are paying for determining to honour their obligations without recourse to repudiation, or to changing the value of their monetary unit. It explains why such an undue share of the national income has to go forj such a comparatively unproductive purpose.

Four petitions in bankruptcy wore filed with tho 8.0. A. in Palmerston Korth'last month. Three petitions were filed during July, 1929. An indication of the unemployment prevailing in Palmerston. North is given by the fact that tho advertisement for a caretaker fOr College stroet school was answered by over CO applicants. Several members of the committee mot yesterday morning and the chairman, Mr W. R. Taylor, stated that great difficulty was being experienced in making the selection owing to tho large number of needy casts.

A Sydney cable states that Rev, Thomas James Wade, S.M., an Island missionary for several years, has been created the first Roman Catholic Bishop of tho North Solomon Islands, The Palmerston North Fire Brigade reports a busier month for July, 19JO, than that experienced during tho cor-, responding mouth last year. Thirtcon calls were received, eight of which were false alarms. Tho brigade was called out on eight occasions during July, 1929. ‘ Woods’ Great Peppermint. Cure First aid for Coughs, Colds, Influenza

Net Int.. Debt nom. alid E’eont. Debt in Serv. in D’wght. Sink. Price. Val. of Val. of Debt. Fund. Index. 1913. 1913. April 1 f’s mill. f’s mill. f's mill. f's mill 1914 .. 050 245 100 049 24 1920 .. . ,. ■ 7829 350 200 3011 135 r 1921 .. . ;. 7574 332 173 •4391 193 1922 . 324 154 4970 210 1923 .. . 7742 347 150 5011 225 1924 .. . 7041 357 10 j 4598 215 1925 .. . 358 101 4722 223 1926 .. . 7559 379 149 5959 • 1927 .. . 379 144 5257 204 1928 •• . 7528 309 141 5343 202 1929 .. . 7500 355 133 5005 207