BRITAIN'S DEBT

New Zealand Times, Volume XLVI, Issue 10541, 18 March 1920, Page 5

BRITAIN'S DEBT

DEFLATION OF CREDIT IMPORTANT STATEMENT BT CHANCELLOR. - Australian and N.Z. Cable Associatioa. (Received March 17, 0.0 p.m.) | LONDON, March 16. When the House of Commons debate on tho high prices was resumed, Sil i Donald Mac Lean moved for a reducI tiou of the Civil Service Estimates by £100,000,000. He urged that the proceeds of the sale.of surplus war stores should go to the reduction of the floating debt. .. .. _ ' Mr Austen Chamberlain (Chancellor of the Exchequer) as t<s I the importance of the reduction of the [ floating debt. He pointed out that tho | Government has begun to reduce tho national debt, and has ceased to 'borrow, in order to balance the current I expenditure. He expressed concern with regard to the extraordinary ex- i pansion_"of business in proportion to ■ I companies, which tended to result in increased competition for limited sup- • plies of materials and labour. He expressed the opinion that those capital* ising' or dccapitalising businesses on the basis of the present inflated profits were taking a dangerous course, and he emphasised that the Governments ' alone could not carry out the deflation of credit. 3lr Chanrberlain said financiers must ; co-operate and severely scrutinise demands for credit. He pointed out that.the £557,000,000 sterling of Civil Service Estimates were inade up as follow:—£43,000,000 for the purely accounting charge, not expenditure afc ; all; £4.5,000,000 for bread subsidy, ; which he agreed should he ended as '< quickly as possible; .£23,000,000 owed i to the railways for maintenance and i renewal during the war; £15,000,000 for coal, of which £12,000,000 was repayable with interest; £36,000.000 for '■ loans to the Allies, including £10,000,-' ' 000 for the maximum relief loans td Central Europe; and £8,000,000 foe the relief and reconstructioE of Bel/* gium. Despite his warning that the ne* i expenditure must involve a . provision for. revonue, the House of Commonsi ■ had sanctioned £10,000,000 additional! for old age pensions; .£11,500,000 for; : housing subsidy; £3,000,000" for the war bonus to the Civil Service % . £15,000,000 additional for education;; i £22,000,000 for unemployment doria-j tions and re-settlement "of ex-servicet men; and £123,000,000' for war pen- ; sions. This made a total of 000 out of £557,000,000, of which it was -believed not one penny would b* . challenged. OPTEMiIsrHO OUTLOOK. ; (Received March 18, 12.15 a.m.) LONDON, March 16. i 'Sir R. S_. Home, winding up the de« ; bate on high prices in the House of Commons, said that during the hrst quarter, of 1923 we paid off an appreciable portion of the debt and reduced the number of notes in circulation. He • believed the financial position was improving daily. There was no cause for ' apprehension or despair. Sir R. S. florae concluded with optimistic refer- i ence to the outlook for export trade. Sir Donald Maclean's .motion was jected by 258 votes to SO. EXPORT TRADE. PROPOSAL TO AUTHORISE CREDITS. "(Received March 18, 12.15"a.m.) ' ' LONDON", March 16. A White Paper has.been issued indicating legislation authorising the Board of Trade to grant credits up to, ; £26,000,000 in connection with the ex-i port trade when found advisable owing. " to circumstances arising out of the war. It is proposed that the date from September'l9th, 1919.' Credits are exercisable within three years and re»-' payable within six years.