APPROVAL OF CITY.

New Zealand Herald, Volume LXIX, Issue 21163, 21 April 1932, Page 9

APPROVAL OF CITY.

EXCHANGE STABILISATION.

PROTECTION OF STERLING.

COURAGEOUS CHANCELLOR. By Telegraph—Press Association—Copyright. (Received April 20. 10.45 p.m.) LONDON, April 20. '1 lie Cilv naturally regards the exchange stabilisation plan as the most important feature of the Budget and cordially approves.

The Financial Times says: "The need for such a fund Is self-evident. The tide of liquid capital has set so strongly toward Britain that it might cause sterling to soar in the absence of a balancing influence and reduce our trade advantage, while dislocation would follow any subsequent marked outward movement of funds.

" The existence of a large exchange fund is a safeguard against the Budget situation being tirown out of balance and a warning to speculators that resources arc available to prevent injury to sterling and trading interests."

The Daily Herald's city editor interprets the decisi'jn as meaning that, the Government now has definitely decided to embark upon a prolonged period of cur-

rency management. The News-C ironicle describes the Budget as a " c.irry-on'' Budget. It says it proves that, the country is by no means out of the wood. All classes must steel their hearts to a continued effort. The Daily Mi il says: "Mr. Chamberlain has faced a very grave situation courageously and fi-mlv. His measures will greatly enhanc <, his reputation and strengthen foreij n confidence in the solidity of British finance. Everyone hopes he is right in predicting that, the worst of the economic blizzard is past, otherwise his estima es may prove too generous." CRITICS OF BUDGET. " DULLEST ON RECORD." CHIEF POINTS OF COMPLAINT. LONDON. April 10.

In Parliamentary circles it is admitted that the Budgeo is one of the dullest on record, but it ugreed that Mr. Chambeilain was in a v?ry difficult position. The chief criticisms are directed at bis inability to reduces the beer duty and revise the income ta>; allowances to married people. A reduction of the beer duty was so generally anticipated that a number of brewers had ">laced posters in public houses and clubs announcing an immediate reduction of one penny a pint. The only othor matter commented upon is the new preference to colonial sugar. A director of the firm of Tate and Lyle. refiners, expresses the opinion that this will not affect prices in Britain, as the duly is paid by the producers. It is surprising that no additional preference is to he given to the Dominions on sugar, but presumably this is being left for the Ottawa Conference. Members of the House of Commons generally approve of the exchange equalisation account, and consider it ought to help the movement toward a sterling union which is going on all over the world. Sir Basil Blackett, a director of the Bank of England, expresses the opinion, however, that it should be described as a rcgularisation and simplification of the system already in existence. Labour critics of Mr. Chamberlain ask: Will the £150,000,000 which authorityis sought to borrow be handed to the Bank of England or will it be controlled bv the Treasury, and what level of stabilisation w 11 be aimed at? Although Mr. Chamberlain carefully avoided naming the articles on which the new import duties arc to be. imposed before the end of the week, it is taken for granted that these will be iron and steel. IMPROVED POSITION. TRIBUTE TO TAXPAYERS. WORLD'S CONFIDENCE WON. British Wireless. RUGBY, April 19. The first Budget statement of Mr. Neville Chamberlain was made under financial conditions far happier than those which confronted his predecessor, Viscount Snowden, a year ago. At that time the country was borrowing £1,000,000 a week to finance the Unemployment Insurance Fund, and the Chancellor was confronted with a large prospective deficit. Hard facts Merc, faced and drastic remedies were applied by Lord Snow den in his interim Budget Inst December, with the result thf.t Mr. Chamberlain to-day was able to face the crowded House with the knowledge that the Budget not only had been balanced, but that even a small surplus had been achieved and that 250,000 more workers than a year ago bad found employment.

The Chance lor spoke for an hour and three-quarters. lie said the changes in taxation would be. neither numerous nor large. "Although we are beginning to see light between the trees we have far to go before we emerge into smoother ways," he said In announcing a continuance of the concession of 12s a cwt. on home beet sugar, the revival of the duty on foreign tea of 4d a lb., and '2d a lb. on Empire tea, Mi. Chamberlain said he anticipated from those sources £3,600,000 a yeai. There would be a reduction from next January cf thu tax on motor cycles to 15s, 30s and £3, according to whether the engine had a capacity not exceeding 150 c.c., 250 c.c., or exceeding the latter figure. This, change was to give designers a free:' hand. A small impartial committee would inquiie into thi taxation of co-operative societies.

The Budget had been saved by the income tax and supertax payers. They had not only effected a substantial fiaving in the co:>t of Treasury bills, but the stimulus of their example had strengthened and ir.vigorated people in many other lands, who looked again to Britain with fresh confidence and hope in Incapacity to lead the world in overcoming financial difficulties.