The Times MONDAY, JUNE 20, 1938. Labour's Glass Houses

Manawatu Times, Volume 63, Issue 143, 20 June 1938, Page 6

The Times MONDAY, JUNE 20, 1938. Labour's Glass Houses

it would not bo easy to imagine a more signal contribution to the gaiety of political life than the spectacle of a Labour ex-Miliister rising from the front Opposition bench in the Commons to pose as a champion of financial orthodoxy and a protagonist of public economy, says the Daily Telegraph. Such, nevertheless, was the role assumed by Mr. A. V. Alexander speaking in the Budget debate.

With an air of virtuous indignation, he pointed to an increase of some £600,000,000 in the dead-weight national debt since the advent of the National Oovernment. On this ho sought to found an argument that Mr. Chamberlain as Chancellor had bceii heading the country straight for bankruptcy. Actually, of course, there has been a net re-payment of debt in every financial year, except 1937-38, since the National Oovernment took office. Mr. Alexander demolished his own argument when he mentioned that £550,000,000 of the £600,000,000 is accounted for by borrowing for the Exchange Equalisation Fund, which holds tangible assets against every penny borrowed. The residue is explained by the conversion of old debt into new debt of a higher nominal amount.

Mr. Alexander eau hardly have, been unaware that the true basis of comparison is not the dead-weiglit capital sum, but the annual burden for interest and management, which has fallen from £284,000,000 in 1931 to £216,000,000 in 1937. This reduction is sufficient testimony to tile public confidence inspired by the inherent soundness of the National Government’s policies.