COMMUNISM IN BALTIC

Southland Times, Issue 24162, 26 June 1940, Page 5

COMMUNISM IN BALTIC

Estonian Workers Demonstrate

RED FLAGS IN EVIDENCE

(United Press Assn.—Telegraph Copyright) (Received June 25, 8.30 p.m.) LONDON, June 25.

The Stockholm correspondent of The Daily Telegraph says observers consider that the Baltic States are veering to communism. It is not only Russia’s military force which is advancing to the Baltic, but a new world outlook.

Estonian workers are continuing demonstrations at places decorated with red flags. At the funeral of victims of the disturbances when the Russians marched in, 30,000 mourners carried red flags and posters inviting the people to crush the old fascist Government Two new communist newspapers, also the Russian paper, make a similar invitation. The last-named declared that the police are fascist and must be replaced by a workers’ militia. CANADIAN BUDGET PRESENTED DEFICIT OF £23,600,000 OTTAWA, June 24. The Canadian Minister of Finance (Mr J. C. Ralston) presented the Budget in the House of Commons, showing a deficit of £23,600,000 for the year ended March 31. He forecast a £140,000,000 increase in the national income to £900,000,000 in 1940, the largest proportion of which could be diverted to war purposes. The deficit exactly equals the war expenditures. The total revenue is shown as £112,400,000 and the expenditure as £136,200,000. Tax revenues are £6,400,000 over the 193839 period, the collections from«’September 1 to March 31 exceeding the collections during the similar period of 1938-39 by £10,200,000. The net debt rose to £654,200,000.

He warned the public of the necessity to reduce personal consumption ana drew attention to the heavy increase in imports. The Government intended to give priority to war requirements and export industries in providing for foreign exchange. He also warned that economic collapse would follow the encouragement of private spending and increased prices. BIG INCREASE IN TAXATION Mr Ralston announced a war-time budget of 1,148,000,000 dollars, new taxes yielding 110,000,000 dollars, making a total revenue of 760,000,000. He added that it was not safe to expect a deficit of less than 550,000,000 to 600,000,000 dollars. New taxation includes a national defence tax starting at 2 per cent, on unmarried persons with incomes of 600 dollars. As an illustration of the increases in the personal income tax, he said that a married man without dependants earning 3000 dollars and paying 36 dollars at present would pay 195 in future. A 10 per cent, tax is imposed on all imports except British preferentials. Other tariff changes are technical. There is also an excess profits tax of 75 per cent. Automobile sales are taxed from 10 per cent, on 700 dollar vehicles to 80 per cent on 1200 dollar vehicles. There are heavy increases in the tobacco and cigarette taxes.

AUSTRALIA’S WAR EFFORT MR CASEY SPEAKS IN NEW YORK NEW YORK, June 24. Mr R. G. Casey, Australian Minister in Washington and Major-General Sir William Glasgow, High Commissioner in Canada and Mr L. R. Macgregor, Trade Commissioner in Canada, with a police escort, visited the World’s Fair. They were greeted with a salute of 19 guns in celebration of Australia Day. Mr Casey, in a speech, outlined Australia’s war effort, declaring: "If the population of the Commonwealth equalled that of America the troops leaving for overseas from Australia would be equivalent to over 4,000,000, in addition to 2,000,000 engaged in home defence. This effort has resulted from the realization that if Germany wins, as Mr Roosevelt said of America, we would not continue to exist as a lone island. We would be dominated by the philosophy of force and in Mr Roosevelt’s words we would be led through the bars from day to day by the contemptuous and unpitying masters of other continents. Britain must stand the blast for four or five months. Then we will have won.”