BRITISH FINANCE.

Oamaru Mail, Volume XLIX, Issue 13905, 5 November 1919, Page 3

BRITISH FINANCE.

TBv Electric telegraph—Copyuicht.] (Per Press Association.) (Aus. and N.Z. Cable Assn.) Received November 5. at 11.-55 a.m. LONDON. November 28. There was great public interest in the I debate begun in the House of Commons on the question of national expenditure. Mr Austen Chamberlain opened with the Government's motion that the. House, realising the serious effects upon trade, and industry of the enormous financial burdens resulting from tho war. promises hearty support to Government in all reasonable proposals, j however drastic, for the reduction of expenditure and diminution of the debt. Mr Chamberlain said that while the position disclosed in the recent White Paper was grave, there was no reason for panic and the situation to-day was better than he anticipated in August. The tax' on revenues was coming in cx- | IraordinariJy well, while Customs audi i Excise wvix' now estimated to yield 38-i millions above the Budget estimate. The tea and tobacco Budget estimates would also be exceeded respectively by lour and fourteen millions. This is important, as it was eloquent of the spending power of the people, which was a i great factor alike in social stability and t revenue production Indeed, he no longer thought new taxation would bo | required to balance incomings and out- i goings. Dealing with tho increased ex- I I peiiditurc over the Budget estimate, Mr J Chamberlain mentioned that Italy and | France owed us much more than had; been anticipated. Replying to denunciations of the administration expenditure, he declared that if the whole organisations created by the war -were swept away and the stall's of all departments returned to pre-war salaries, only twenty-two millions would be saved. He announced that the unemployment donation would cease on November 21. As regards the bread subsidy, the Government thoughtit impossible to terminate.it immediately. He proceeded to announce drastic and immediate army and navy reductions : namelv —the home forces by 217.000. the Rhine army by 116,000, the arniv in France and Flanders by 131.000.'the Black Sea force by 6000, the forces-in Egypt and Palestine by 22.000. and those in Mesopotamia by 7000. These reductions would become effective on November 15. while ■ by December the. army in Mesopotamia would bo reduced by 94.000. including Indians.

The naval reductions included five battleships in the home fleet gone into the special reserve and one for sale. There has been a large cancellation of ships under construction, showing a saving of eighteen millions: the permanent personnel of the navv is to bo reduced by 16.000. This showed that Britain was leading the way in disarmament among tho nations of the world.

llr Chamberlain proceeded to deal with the various' proposals to reduce the national debt. He denounced the general capital levy suggestion, because it was unfair and encouraged extravagance, while it deterred the influx of foreign capital, and if it was once introduced for :t good purpose the public would feel no security against its introduction for other purposes. The question of a special levy o ti prolils accumulated by reason of the war stood on a, different footing. He did not dispute the equity of the abstract principle of such a tax, but the difficulties were, immense. However, ;: Select Committee would be appointed to advise tho Government. Mr Chamberlain concluded by prophesying a substantial surplus available in 1920 for the reduction of the debt without additional taxation or borrowing. Our burdens were very heavy, but our shoulders were, broad, and while there was every reason for caution, there was none for panic. Mr Churchill stated that owing to the reduction of the armies of occupation Germanv's indebtedness had been reduced £48,000,000. The amount would not bo received this year, although Germany paid about a million

, in currency for use of the troops in Cologne. The dominions owed the War Office £50,000,000 in connection with the maintenance of troops in the field m war time. Ho now anticipated that owing to the financial difficulties in Australia he would receive only •£15,000,000 out of £35,000,000 allowed for in the Budget; but the other £20,000,000 was a good debt whereon the Dominions were paving -interest. He pointed out that £67.000.000 out of £118,000,000 not in the Budget was i "War Office deficit, constituted of de- ! ferred payments, and the remaining j £51,000,000 was accounted lor by inI creased pay in the army, the railwaystrike, the rupee exchange, and small unanticipated delays in demobilisation. ! At present there were 80.000 troops on i the Rhine. By November .15 there j would be 45,000, which would im- | mediatelv thereafter be reduced by !. 12,000. " "We have been guarding I 188.000 Germans in France, and were : dispersing as fast as posiblc 100,000 I Chinese native laborers. He optimis- ' tieally reviewed the situation in Rus- : sia. Denikin had now gained enormous territory, including the richest j part of Russia, with a population of ' 40,000.000. Denikin had taken «70,000 ; prisoners since May. In March, when the serious lighting began there werci j 430,000 Bolshevik troops and 320,000 anti-Bolsheviks. By September there were 460,000 Bolsheviks and 640,000 anti-Bolsheviks. Denikin had been ad- j vised, that we expected his forces to [ become self-supporting .by the end of the present financial year. Meanwhile the Cabinet approved a final contribution to Denikin of surplus stores valued at fil'U-eu million sterling, which _were despatched gradually during the winter. Hence we were approaching the end of our own entanglement in Russia in a. way which was securing the same objects as those of the anti-Bolsheviks. He hoped Britain would not lie accused) of militarism. She alone among the. nations of the world Tiad taken steps which would shortly abolish conscription, and she was the only country in Europe which practised what she. preached and translated the sentiments of the League into a great swift policy of disarmament.