FINANCIAL SITUATION.

Poverty Bay Herald, Volume XLVI, Issue 14984, 11 August 1919, Page 5

FINANCIAL SITUATION.

CHANCELLOR'S PESSIMISTIC REVIEW.

(Elec. Tel. Copy right— United Press Assn.) (Australian and N. 2. Cable Association).

LONDON, August 6. Mr. Austen Chamberlain, Chancellor of the Exchequer, m the Hoitse of Commons, m a pessimistic review of the financial situation,, said that if the country continued spending at the present rate, it would lead straight to national] bankruptcy. It was essential to increase production and reduce expenditure. The Budget forecast would fail to realise expectations, llie expenditure sanctioned on pensions alone amounted to half the pre-war expenditure. The impossibility of discontinuing food con•trol had had a serious effect on the Budget as it was hoped to realise seventy millions by the sale of the Government's stocks. He dVubted whether it was possible to 'balance accounts without new taxation. The only way to dea.l with exchanges was to reduce the import of luxuries and increase the exports. The waste should stop. There was nothing m the position beyond* the nations power if it tackled the" problem with the same j resolution displayed m connection with the war.

ous aspect of the soldier's life m France, % FINANCIAL DISASTER. LONDON, July 9.— Loi'd Robert Cecil m .Parliament, said he believed Europe was oh the verge of a financial disaster of incredible magnitude. They might get, through or they might not. The news from Italy, he said, looked exceedingly bad. i '

Anyone, said Lord Robert, who at pro? sent really squandered money was doing a very .■ serious thing to the welfare of his country. He did not wish to see the machinery of the Board of Trade used for restrictions on imports employed more than was absolutely necessary.