A LETTER FROM LONDON

Nelson Evening Mail, Volume LXI, 18 June 1926, Page 7

A LETTER FROM LONDON

i NEWS AND VIEWS ON VARIED TOPICS j ',''.' '.'; 'r..* ' ,'. ■'.'..(From Our Own Correspondent.)

\ JOHN BULL PAYS • April 29,' : 1926. - Though i-he whole of Mr Churchill's • Budget speech was inevitably, delivered ' .with the possibility, of a great industrial ; crisis in mind, that contingency occupied • only a few ; sentences. But they were ; significant. They contained the caution ' that all the calculations had been based • on the assumption that serious trouble ; would be avoided \ and the warning that j ; if the worse happened, supplementary j i taxes, involving substantia] increases in ! both direct and indirect taxation wouid ; have to be imposed. Although Mr ;i Churchill said nothing that • excited I'ic ' enthusiasm of his crowded audience, he '• always held its interest, and lie reiiev- ! ed the general grey tone of Ik j.ctuie ; by occasional patches of humour and ;jcharacteristic phrases. I'ioigh he had ;}to admit that the great- s'apie mdus- ; tries are still depressed, he-found'sonic ; consolation, .iin, the fa.ct- that; cut fain ' ! trades, are abiiormallv brisk, that the, : spending capacity of t/he community ! continues to increase slowly, and that the national debts," especially He Hinting debt, is being steadily diminished. ' During the last six years the rednntion had been at the annual rate of £75,000,000. But. these facts hie recarded as merely a stimulus to persevere in order to meet impending automatic increases of expenditure as well as new outlays decided upon by Parliament. TWO GOOD MOVES i ft was natural that Mr Churchill should look back 'with satisfaction on two of his chances of last year—the re-1 turn to the gold standard and the in- 1 stitution of the silk duties. The return to the gold standard had been effected with the minimum of inconvfni- j en'ce, and the silk duties had bromrht ' in £6,000,000 of revenue without fill-1 filling anv of the dismal predictions of. critics. On the contrary, prices had been .reduced, and trade had continued , to grow and prosper. The effect of the restored McKcnna duties had been I

equally satisfactory. When he came to draw up his prospective balance-shoe) for the current year .the Chancellor found himself confronted by a d"fici! of nearly £8.000,000 on the present has:? of taxation, but by lire time he hadapbed the proposals tie had in mind Mini (inure had been converted into ir stir plus of more than £14.000.000. |

SKIMMING THE CREAM OFF BETTING Of thai amount he is I" derive a small shore from the abolition of |!m three years' average for income-lav. the, forerunner of. a series of changes in that sphere, but. otherwise lie proposes to avoid' an increase of compulsory taxation. But in luxury taxes, which lie prefers to call optional in Ihe sense that they can he avoided without deprivation of anything required for health, comfort, morals, or business, lie proposes to confine himself to helling, which is to pay 5 per cent .on the amount slaked, o be ascertained through returns from

the bookmakers :'n respect of credit belting, and to be collected by means of tickets in the. case of course betting. Mr Churchill -postponed arguing the merits of his proposals, for which, as he foresaw, he will have abundant opportunity in the future. The revenue from betting ho estimates at £6,000.000 a year,.biit as.it will not be possible Rbegin till November, only a third of that sum will accrue this year. THE ROAD FUND If was apparent that Mr Churchill felt less sure of his ground when he came to deal with the Road Fund. He dwelt- at length on its prodigious increase beyond Ihc expectations when it was established, argued that there was no contractural obligation on the part of the Government, to those who con-

tributed to the fund, and pointed out the serious effect of motor fraction on 'the railways, which, through the-ratcs, . had to subsidise, their most serious competitor. At first Ihc Chancellor gave the impression Hint he was to propose n tax on motor spirit, but he had to admit that, the difficulties of that problem had not been solved, and that lie r 'had to fall back on a higher rale of

duty on large ears, whether pleasure or commercial. From the nineteen millions at the credit of the fund In; is to lake seven millions, plus one-third of (lie increase from pleasure care and cycles, amounting to three and a-half millions, bill- the fund will still lie left with a I larger revenue than hist year, and the mini available for unclassified roads is to be increased bv another half n mil | linn. - . I COMPLIMENTS FIRST ' • j An windfall. produced. 'as lie admitted, not merely by the wind bill by "a certain judicial shaking of the tree," is to be derived from shortening the credit given to brewers for payment, of duty, thus getting thirteen months' revenue in twelve months and realising five millions. To this has to he added four millions promised by France as a contribution to debt repayments For a moment Mr Churchill caused a gasp of e.\| latiou when he mentioned a surplus of fourteen millions, and asked. "What shall wu do with it?" Rut he hastened at once In explain Hint 1,,, had decided to resist temptation and In add ten millions' to the Sinking Fund, reserving the remainder for contingencies. This, he contended, was the only course consistent with the austere policy which all pai;tic« had maintained in the reduction of debts. Tims, in effect, the nation would lime pa ; d Hie whole of • the ui.il Kiilisi ly out of current revenue. ' KER-MANY'S TROUBLE ] The chairman of one. of the biggest in- ' dustria] corporations in Germany is now in London, and gives me a gloomy account of conditions in his country. There lire now 1.500X00 unemployed in Her < ninny, and life number is incrcasiue;. Business after business is closing down because of heavy lax burdens and the

, inability to find- working capital. The greatest burden is the turnover tax, j which was hailed as a stroke of fiscal j genius 'When it was introduced, and I which is pfer cent, on all invoices., j The theorists, however, had overlooked the fact that the tax' placed a final burden of as much as 15 per cent, on goods with a series of processes earned out by different firms. If will probably be reduced to 1 per cent, very soon. Borrowing money is almost 1 impossible. The banks have ample funds, but they arc so cautious, owing to past experience, that it. is impossible to obtain a loan without pulling up 'reliable security to an amount greater than the required loan. Yet in spite of all this, night. conditions are more hectic than ever in Berlin, and (here seems lo ho plenty of ■money to spend—which my informant suggests is the most dangerous omen of coming disaster. THE RUSSIAN GRAND DUKES I gather that the Grand Duke Nicholas has been selected by the Russian emigres as their candidate for the Czardom. The name of the Grand Duke Cyril, his cousin, was at one time mentioned, but a friend of mine who meets him annually at S.t. Briac, near Dinard, tells me ho would be surprised if he has any ambitions in that direction. He is a handsome, affable fellow, who divides his lime between St. Briac. where he has a pleasant villa- almost on

the edgo of the golf course, and the Riviera, where ho spends the. winter. He plays a sound game of golf from a. handicap of about nine, and seldom misses his afternoon round. In the j ' veiling ho drops' into the house of I any neighbour for a rubber of bridge. He is a special favourite with (lie small j English eelony, sell led at St. Briac, : which is a cheap and unfashionable neighbour of Dinard. It has no casino or even a cinema. The Grand Duke --.peaks perfect English, and it would bo surprising if he were to abandon his quiet leisure for an uneasy and uncurtain Crown.

AN IMMORTAL ANNIVERSARY A crowd of hushed Londoners assembled in Whitehall on Sunday, to carry with Ihcni an impressive memory ol an immortal anuiversay. To celebrate flic landing at Gallipoli, there was an historic pageant of great battalions; men in mufti and men in the uniforms "f the Royal Scots, the R.H.A., the Royal Fusiliers, the Lancashire Fusi-1 liens, the South Wales Borderers, the! Scottish Borderers. Urn Border Regi-I meni, the Inniskilliugs, the Hampshires, I lie, Essex, the Aloiuiiouths, the Guernseys, Ihc Worcesters, the Sixteenth DieI lards, the Lei listers, the Mussters, and the Newfoundlanders. At the Cenotaph Sir A. Ilunlm'-Weslon and Sir lan

Hamilton delivered speeches that obviously moved many among the crowd iUid vividly recalled'a feat of arms that must for ever remain among the bright est epics of British valour. There was a curious contrast between the speech >f Sir Ilunfer-Westou, and Sir lan Hamilton. The former emphasised the I ■luly of Gallipoli's Bur.vjvors; .the. latter 'he steadfast heroism of the dauntless lead. Among the magnificent wreaths •leaped around the Cenotaph was one loin the 29th Division/placed there by feneral 1). E. Cayley, why led the Wor■esters, at, the landing. EM BLUE SETTLEMENT 1 hear that the scheme of Empire

settlement has disappointed those most' interested in it. The- money madeavailable by the Imperial Government has proved far greater than the demand upon, it, and many of tho cases in which it has been ' expended have proved unsatisfactory. This has been due, in part, to the restrictions of the Dominions Governments, and partly to tho antipathy.of the Labour movement overseas. In somo cases the emigrants were rejected for medical reasons on their'arrival, and had to be sent home at tho expense of the scheme. In view of the great scope and need for well-con-sidered schemes of emigration it is unfortunate that the effort should have been virtually a failure, and it is probable' that tho forthcoming Imperial Conference will bo invited to givo the.problem renewed attention:

KING AS GODFATHER It is n6t very often that the King ads as godfather, but lie &as, I hear, given a promise to stand as the chief sponsor for tho Marquis of Blandford's son. who was born ou April 18th at Lord and Lady Blandford's town house in Portman-square. By special permission, the christening will take place in the Chapel Royal, and Lord Hillingdon will be the .second godfather, with possibly a well-known American lady as godmother. Lady Blandford, who is very popular in society, was before her marriage Lady Alexandra May Cado-

gan, one of the •daughters of the late Viscount Chelsea. She has always been a favourite in the Royal circle and was a. god-da lighter of Queen Alexandra, after whom she is named, TURKEY WANTS .TRADE T learn from authoritative quarters that the prospects of ,-m amicable settlement of the outstanding difficulties between this country and Turkey are now good. Sir Ronald Lindsay has returned to Angora fortified by consultations with tho Home Government and,

1 behove, empowered to offer terms winch arc likely to bo acceptable. As was expected, the compensation sought by the lurks in respect of their Mosul claims will be in the economic rather than the territorial sphere. Turkey has little desire for addtiional area which would merely involve her in racial feuds, but she has a real need for better commercial and industrial relations with Europe, and, as was foreseen she prefers trade to spectacular but unprofitable aggrandisement . If agreement is reach, ed. Uui credit will be mainly due to Sir ' Kouald Lindsay, who is a diplomat of ffniat experience and shrewdness. "MAC" IN PERSIA

I met Admiral Sir Reginald Hall yesterday on his return lo Westminster from Persia, where he has been spending .-i. tow weeks' holiday in a successful search for health mid sunshine. He found I ime (o see something of the

political and commercial state of (ho country and formed a high opinion oF it in both aspects. The enterprise of the Anglo-Persia,, Oil Company har. brought, prosperity | t . : , wild ai ' ea . ( <inrf '•he native:; have taken readily to habits of .regular .work and pay. The Europeap staff numbers about 1200, and tho Admiral tells mo that Scotsmen predominate. If you put your hear in at n workshop door and call "Mac," half the stall will respond. Sir Reginald spent a few days in Kgypt on the way Inline, and heard highly favourable accutinta uf Lord Lloyd's work and the

persdnal prestige he has already established among tho • Egyptian, population. BRIGHTER DRESS CLOTHES Men's evening dress becomes gayer and gayer. The cost may still bo black and the shirt white, hut the traditional sombreness of hue is now- being enlivened with accessories of the brightest shades. Studs and cuff-links aro no longer made plainly in gold but are often in the gayest colours. . The other evening at the Berkeley a ivellknown young Baronet was wearing studs, cuff-links,, and waistcoat buttons of the brightest jade green. Another popular shade is royal blue, • while young men with rather . quieter tastes aflect onyx surrounded with .v narrow band of platinum. . • •• ;' "-I MOTOR YACHTING

lam told that the old gentlemen of I the Yacht Squadron .at Cowes deplore j the tendency of the younger generation !to prefer motor boats to honest sailing, and they regret tho increasing number of fast motor yachts which are ap-' pearing off the Isle of Wight. These youn# men claim that motor racing, especially in the hydroplane-driven vehicle, is far more exciting than any- j thing that can be done under sail. The j 'Oma,' 'owned by Lord Iveagh's son,, 1 the Hon. Ernest Guinness, is said to bo as fast as an express train, and'to be capable of 60 knots an hour in still water. THE ROYAL ACADEMY One point must be emphasised about this year's Royal Academy. With great

| travail the Old Guard have been persuaded lo recruit some of the best of the moderns. And now the latter are not sending anything in l 0 justify' their existence at the big show. As a. famous critic remarked at the private view, they have taken the Academy's shilling but they are not fighting. This is the more lamentable because, though the average of is quite good, there is rather a lack of outstanding pictures, and this is emphasised bv the admirable new method of hanging' the works. Mi- Augustus John is not the only conspicuous absentee. The show is notable for an' unusually large number of interior, and some very fine quiet landscape work; but there is nothing in theselwo realms to write home about. The portraits are very interesting—alike for notable failure and unexpected achievement. It is a Maurice Greiffcnhagen year. He has, besides a striking frieze of yellow ochre ladies "mid nuddings on" reclining in front of a- black streaky sky, portrait studies of innumerable people

PORTRAITS AND PERSONALITIES Mr Greiffenhagen is fortunate in his subjects, but so are they fortunate iu their artist. If they are all "personalities, vivid and strong, the artist wittily brings out all their points, perhaps best of all is the study of .Sir Hector Cameron, whom the artist obviously sees as a regular Scots Dr Johnson. Sir William Orpen is again in his ■- best mood. His portrait of Miss Gladys Cooper is even more beautiful than the lady herself. Orpen also has a cleverly, humorous picture, superbly painted, of "Closing Time"'at Avignon. The tired keeper is no less effective than tho bored

tigers, onj of'whom is yawning in a way that would; i-uin ' any first night theatrical ;.:show.'' .His-happiest work, however, is ' a; portrait of a- famous London surgeon in complete operating-room attire 1 ? Even t&, the glistening rubber gloves. Mr MeEvoy and Mr" Sims are both disappointing.. The latter's huge picture of three young' girls,.with a sensational backsjraund, is a real curate's egg. Mr Munnings' .Derby Gypsies are a trifle too clean, but his pic-

tures of royalty at Ascot and elsewhere are fine, and bis best work is the famous Saucy Sue victory. . ', ■ \ V PROBLEM PICTURES Neither Mr Collier, in his portrait of Sir John Bland-Sutton, nor Mr Cadpgau Cooper, with several'waxlike effigies, achieve success.. Rut Mr Jack's portrait of King Geprjre. is really good. He "gets" the King without flattering him. Sir Frank Dicksee has two pretty-m-etty portraits," and Miss; Laura Knight has two highbrow "studies; but

the two worst portraits' in the show are Mr Glyn Philpot's Prime Minister, emphasising Mr .Baldwin's red hair and evebrows, and Mr McEvoy's' Leader of the Opposition, showing Mr Ramsay MacDonald* like an insignificant village

joiner in his Sunday clothes. Two insurance magnates have avoided banality by being painted, the one in full Highland costume with dirk, and the other in hunting pink. Sir John, Lavery contributes bis usual competent and artistic portraits. Two artists break a lance with Epstein—who contributes no sculpture—with pictures of Rima, both more conventional than the Hyde Park lady. There are several problem pictures ; the easiest to guess being a study by Mr Charles Speneelayh. "Lot Thirteen.'' An old gentleman, manifestly a connoisseur, is unpacking a hamper, and grasps in one hand a broken piece of china. Mr John Souter's "Th» Breakdown" exhibits a, nigger in evening dress playing the saxophone on a broken fragment of some colossal statue, what, time a. lady jazzes in her birthday suit.