BALANCING THE BUDGET

Otago Daily Times, Issue 21431, 4 September 1931, Page 9

BALANCING THE BUDGET

BRITISH CABINET’S PLAN THE TAXATION PROPOSALS SUB-COMMITTEE’S REPORT (British Official Wireless.) (United Press Association.) (By Electric Telegraph—Copyright.) RUGBY, September 2. At a Cabinet meeting, which lasted two hours and a-half, the report of the Finance Sub-eommittee was considered and an examination of the taxation proposals, which Vill be disclosed in the House of Commons next week, was begun. Cabinet will meet again in the evening. Commenting on the improved tendency on the Stock Exchange to-day, the evening papers refer to the growth of confidence due to the obvious determination of the Government to press on without delay with the scheme for balancing the Budget. While speculation as to the main features of the proposals continues, thefe is general recognition that no definite statement regarding any part of the Cabinet’s plan will be made- until it is completed and placed before Parliament. It is officially announced that the special session of Parliament has been summoned to meet on September 8. UNEMPLOYMENT INSURANCE ANOMALIES IN THE ACT. (British Official Wireless.) RUGBY, September 2. The Minister of Labour (Sir Henry Betterton), after consultation with the Trades Union Congress, employers’ organisations, and the Treasury, appointed an advisory committee to consider and report on the method of dealing with the anomalies which are in operation under the Unemployment Insurance Act. Lord Burnham will preside over the committee, which consists of members of trade unions, employers, and the Treasury. SEAHAM LABOUR PARTY MR MACDONALD’S POSITION. v LONDON, September 2. Mr MacDonald, in a letter to the Seaham Labour Party, regrets that its resolution was passed in ignorance of the facts. “ The position of my colleagues and myself is dictated by the determination to maintain the maximum standards of living and pay. Any action I take in response to any resolution will be only after I have finished my present duty.” A previous message stated: Despite a dramatic letter from Mr MacDonald, the Seaham Labour Executive has unanimously recommended that the Prime Minister should be asked to resign his seat. The letter pointed out that the crisis endangered workers’ wages and savings. “We had to avert the crisis or allow it to shatter us. The small dole cut was necessary to enable the dole to continue at all. I know the pressure that will be brought to bear on my friends at Seaham, but I place myself unreservedly in their hands.” DICTATION BY PARTY CAUCUS A MEMBER’S REPUDIATION. (British Official Wireless.) RUGBY, September 2. Mr Holford-Knight, Labour member for South Nottingham, informed the local party that he reserves his decision on his attitude to the new Government ’until its proposals come ,before Parliament. The only test he will apply, he said, is how far they satisfy the national necessities, and he repudiates dictation by the party caucus. THE STOCK EXCHANGE A MORE CONFIDENT TONE. LONDON, September 2. The Stock Exchange is more confident in tone following the official announcement that the forthcoming war loan conversion will be purely voluntary, and that fixed interest-bearing securities will not be singled out for taxation. CAUSE OF THE CRISIS FINANCIAL HOUSES BLAMED. LONDON, September 3. (Received Sept. 3, at 9 p.m.) Commander Kenworthy, in a letter to the Hull Labour Party, says: “The crisis is not of the Government’s making. The difficulty was caused by the financial houses, and French and American bankers had dictated the way in which the Budget should be balanced, which was intolerable. We are in for the hardest struggle. The general election may be soon, .but the issue is simple—namely, whether Parliament is supreme, or the City of London, Wall Street, and the Banque de France. The Labour Party is. fighting a small oligarchy of financiers.” LEADER OF EXTREMISTS A TYPICAL OUTBURST. LONDON, September 3. (Received Sept. 3, at 9 p.m.) Mr James Maxton, as leader of the Labour extremists, writing in the New Leader, says: “The National Government will fail to do more than find temporary solutions for our immediate troubles, ahd the people had better prepare their minds for a semi-Fascist regime. It is obvious'that new revolutionary tactics must be adopted by the Labour opposition.” MR MACDONALD’S SUPPORTERS LONDON, September 3. (Received Sept. 3, at 9 p.m.) The following Labourites are supporting Mr Ramsay MacDonald: —Mr Philip Snowden, Mr J. H. Thomas, Sir William Jowitt, Mr C. M. Aitchison, Mr G. W. Holford-Knight, Mr Malcolm MacDonald, Mr J. A. Lovat-Fraser, and Mr G. M. Gillett. The last-named has declared: “The defeat of the Government would cause a financial panic. Accordingly I felt I must follow Mr MacDonald’s wise example.” BONDS ISSUED IN PARIS PARIS, September 3. (Received Sept. 4, at 1 a.m.) A message from Paris says that the 4ssue of £20,000,000 in British Treasury bonds was almost subscribed in 48 hours.