NO EXCESS GAINS FROM ARMS

Southland Times, Issue 23180, 22 April 1937, Page 5

NO EXCESS GAINS FROM ARMS

Welcome For New Tax LABOUR CRITICISM OF FOREIGN POLICY (United Press Assn.—Telegraph Copyright) (Received April 21, 7.15 p.m.) LONDON, April 20. “The Budget marks the complete failure of the Government’s policy,” said the Leader of the Opposition (Major C. R. Attlee) in the House of Commons. “We shall oppose it because it is the expression of a foreign policy which is helping to ruin the world.” The Leader of the Liberals (Sir Archibald Sinclair) said: “The Chancellor has explained why Britain is unable to balance her Budget this year, but he did not attempt to explain how she will be in a better position five years hence.” The Times in an editorial says that Mr Chamberlain avoided all extremes, apportioning the cost between revenue and loan in the manner least likely to encourage a boom or start a downward movement. The Daily Telegraph says: The new tax is an endeavour to take back at least a portion of the extra gains which may arise from the increased expenditure on armaments, but will apply to all forms of increased business profits. The Manchester Guardian says: Mr Chamberlain deserves high credit for anticipating the public demand for a duty on excess profits and allaying possible unrest because of the spectacle of high profits made from the country s need.” According to the political correspondent of the Australian Associated Press, Government supporters were alarmed, but the Socialists were jubilant over Mr Chamberlain’s declaration: “I believe I have created a flexible instrument which is easily adjustable to changing conditions. Government supporters fear that it Labour comes into power it will use this as a precedent for a capital igvy. “With characteristic orthodoxy, says the correspondent, “Mr Chamberlain began surveying the revenue and expenditure before an unexpectant and unexcited House, but his speech only three-quarters concluded when the House, excepting the Labour members, were so stunned that the Government benches could not utter a cheer. The general verdict was that, excluding the meat duties, Mr Chamberlain’s Budget was brilliant Socialism, which the Labour members vociferously confirmed by repeated cheers, several saying afterwards that their own party could not have introduced a better Budget. “The national defence contribution tax was a well kept secret. Conservatives unhesitatingly expressed the opinion that their Prime Minister elect has imposed a drastic tax on industry, the repercussions of which will be widespread. They consider that the measure marks a substantial advance towards the redistribution of capital.’