BRITAIN'S PREDICAMENT.

New Zealand Herald, Volume LXVIII, Issue 20977, 14 September 1931, Page 9

BRITAIN'S PREDICAMENT.

CHOICE OF EVILS. BUDGET OR FINANCIAL RUIN. BROADCAST BY MR. SNOWDEN. By Telegraph—Press Association—Copyright. British Wireless. RUGBY, Sept. 11. The Chancellor of the Exchequer, Mr. Philip Snowden, in a broadcast talk to the nation on the emergency Budget stated that tho Budget he introduced last April was, as he slated at the time, a makeshift one. He had waited to submit the new Budget until he had the support of tho recommendations of Sir George May's committee, whose members were nominated by all three political parties. In the meantime the financial situation got progressively worse. Mr. Snowden then described the stages of tho British financial crisis following tho grave difficulties experienced in Austria and Germany in June and July, and explained the nature of the danger with which the country was faced.

Tho Chancellor told his listeners they could form some idea of what a calamity they had escaped by remembering what had happened in Germany, Austria, France and other countries. British holders of French war loans knew something of what depreciation meant, as four-fifths of their capital and four-fifths of their interest had been taken away by the depreciation of the franc. Paper Currency the Alternative. The choice roundly was between the Budget, with its unpleasant economies and heavy taxation, and a paper currency of no stable value, which meant ruin, more or less, for everybody. "I know," ho said, "that the sacrifices which you are being called upon to make are to you real and tangible, while the ruin which would otherwise overtake you is not so obvious, but it is just as real." To restore confidence in British credit the Budget had to b© balanced. It had got into an unbalanced condition mainly through the call upon tho Exchequer for the relief of unemployment. The trade depression had also reduced very heavily the yield of taxes. The Government had decided to cease borrowing for unemployment, and to meet the cost of relief out of current revenue, although it would add £60,000.000 to the expenditure in a full year. They had to recogniso that in a time of great trade depression the country could not afford the expenditure which might be incurred in prosperous times. Changes in Income Tax. Tho Government's economies, amounting to £70,000,000, were severe, but not intolerable. Mr. Snowden defended in detail the cuts in unemployment benefit and the salaries of teachers. Regarding tho income tax changes, he stated that out of 4,000,000 more persons whose incomes would be brought under review, only 1,500,000 would pay the tax, and that tax would bo small. The contribution he was asking from people with incomes of from £2OO to £3OO a year was not large, and he believed they would not complain of making it to tho national need in the emergency. The Chancellor described tho talk of a " bankers' ramp " as unadulterated nonsense. If the facts were known the country would bo eternally grateful to the Bank of England for the efforts it had made to fulfil its duty as the custodian of British credit.

" The industrial depression is slow to lift," concluded Mr. Snowden, " but the country has come through hard times triumphantly in the past to an era of greater prosperity. It will happen again if the people show the same grit as their predecessors, and tho same faith in the country's future."

TEACHERS' SALARIES. PROTEST AGAINST CUTS. DEMONSTRATIONS IN LONDON. (Received September 13. 7.13 p.m.) LONDON, Sept. 13. Five thousand teachers marched in procession to a protest meeting in the Kings-way, temporarily blocking the traffic in tho Strand and Kingsway. Three thousand more attended an overflow meeting, and another 5000 met at Westminster. All passed a resolution to the effect that the proposed cuts in teachers' salaries constitute a breach of Mr. MacDonald's equality of sacrifice declaration. The London Teachers' and Schoolmasters' Association has decided that its members will not perform extraneous duties, such as the organisation of games and entertainments. PROTECTIVE TARIFFS. NONE WITHOUT ELECTION. WELL-INFORMED OPINION. (Received September 13. B.IS p.m.) LONDON. Sept. 12. Notwithstanding all the clamour for immediate protection, well-informed people insist that there will bo no tariffs without an election. LUXURY IMPORTS. SUGGESTED PROHIBITION. COMMITTEE TO INQUIRE. British Wireless. RUGBY, Sept. 11. The Government has appointed a committee of three experts, who will immediately examino the suggestion of tho prohibition of luxury imports, which was made in tho House of Commons by Mr. Walter Eunciman. AIRSHIP POLICY. MEASURES OF ECONOMY. RIOO TO BE DISPOSED OF. British Wireless. RUGBY. Sept. 11. In the course of his speech on the National Economy Bill the Prime Minister, Mr. Mac Donald, in the House of Commons, mentioned that the airship RIOO was to be disposed of and the Cardington aerodromo placed on a care and maintenance basis. The masts and equipment, in various parts of the world, built to facilitate airship flights, would bo reduced to the same status.