BUDGET DEBATE

Southland Times, Issue 20662, 18 April 1929, Page 7

BUDGET DEBATE

LABOUR ATTACK.

SPIRITED CRITICISM BY MR SNOWDEN BALFOUR NOTE ASSAILED(United Tress Assn.—By Telegraph—Copyright.) % London, April 16. In the House of Commons, Mr Philip Snowden (Labour), criticizing the Budget, said the country had been disillusioned concerning Mr Churchill’s earlier pronouncements in favour-of economy. The new remissions of taxation merely represented another raiding of the sinking fund. No more scandalous transaction had ever been made by a British Minister than the settlement of Continental debts to Britain. France has been allowed to repudiate fourfifths of her debt to fjritain, though since the war France had been the most prosperous country in Europe. The case of Italy was even worse. We had done for France and Italy what the United States had not done. The total debt ratified, agreed to, or funded amounted to £1,500,000,000, on which the taxpayer was paying 5 per cent, interest. Mr Churchill commuted these debts for £20,000,000 a year, while we were paying the United States £37,000,000. Mr Snowden proceeded: We never subscribed to the policy of the Balfour Note. I think it was infamous, and we hold ourselves open if circumstances arise to repudiate the conditions of that Note. Mr Churchill, interrupting Mr Snowden, stated that the Balfour Note embodied agreements with France and Italy. It was a dangerous thing for a possible future Minister to use the word “repudiation” in this connection. Mr Snowden said he did not subscribe to the doctrine that an agreement made by one Government bound every succeeding Government. The Budget was bare-faced bribery. Mr Churchill had lowered national credit, and his dismissal would be welcomed by men of all parties having regard to sound, just taxation, and honest finance. Sir Robert Horne (conservative), congratulated Mr Churchill on giving such relief to taxpayers from such a narrow margin of surplus. The relation of direct to indirect taxtation was now 60/40. Out of 27,000,000 voters 2,250,000 bore upward of half the total taxation. The Hon. Walter Runciman (Liberal), said the continuance of high interest, which was hampering business, was almost entirely due to Mr Churchill’s dealings with the sinking fund, which had created a new debt as fast as it wiped out the old. His dealings with national finance would leave a mountain of embarrassment to his successor.

Sir Edward Hilton Young (Conservative) said that with the single exception of the United States British credit was the highest in the world. The Balfour Note was the foundation of the reconstruction of Europe. If they tore up these settlements exchanges would again be thrown into the meltingpot and further injure our foreign trade.

Mr F. W. Pethick-Lawrence (Labour) said that the City of London was in no wise deceived by Mr Churchill’s wanglings and devices. The people would be thankful to get. rid of a man who had consistently thrown dust in the eyes regarding the finances of the country. HOUSE TAKEN BY SURPRISE. LABOUR AND BALFOUR NOTE. (Rec. 10.50 p.m.) London, April 16. Mr Snowden’s statement in the House of Commons regarding Labour's attitude towards the Balfour Note (in which Britain undertook not to exact more from her debtors than required to pay America) took the House by surprise. Mr Churchill hurriedly left the Chamber. When he returned it was evident that the Government order of speaking had been rearranged. A cabinet meeting will be held to consider measures to allay the inevitable alarm in foreign quarters; also the proper reply to be made to-night. The Parliamentary writer of the Morning Post thinks that in an effort to be effective Mr Snowden became reckless or he would never otherwise have slipped out the defiant remark which astonished everybody.—Australian Press .‘Association. ABOLITION OF TEA DUTY. SATISFACTION IN CALCUTTA. (Rec. 11 p.m.) Delhi, April 17. Leading tea dealers at Calcutta are unanimous that- the abolition of the tea duty will appreciably increase the consumption of tea in the United Kingdom, while preference is so small that the abolition will not hurt the Indian industry. Dealers and brokers here scout the possibility of Java seriously competing with India, except possibly in common and medium teas. The manager of a leading blending house here considered that the abolition of preference would help India and increase exports to out markets, such as New Zealand, Australia and America.— Australian Press Association. REACTION ON STOCK EXCHANGE. LONDON PRESS COMMENT. London, April 16. The Budget as a whole was well received on the Stock Exchange and it had little effect on the markets. Tea shares, however, were firmer in anticipation of the increased demand in view of the tax remission, and the Budget effect on some railways was welcomed. Brewery and motor shares were steady and tobaccos displayed a hardening tendency.

Comment on the Chancellor of the Exchequer's speech as was to be expected in view of the General Election is sharply divided on party lines. Both the Conserva- t tive and Liberal journals, however, congratulate Mr Churchill on his masterly exposition of the national finance with which his speech opened. The Conservative newspapers compliment him on the soundness of his proposals for disposing of the surplus, while the Opposition newspapers declare that the tea duty relief and the relief to fanners are electioneering features. —Australian Press Association.