“QUIXOTIC GENEROSITY”

Sun (Auckland), Volume III, Issue 725, 26 July 1929, Page 9

“QUIXOTIC GENEROSITY”

BRITAIN’S ADJUSTMENT OF WAR DEBTS SNOWDEN TO STOP IT (Australian and N.Z. Press Association) LONDON, Thursday. The Chancellor of the Exchequer, Mr. Philip Snowden, was the principal guest at a banquet given by bankers at the Mansion House. Mr. Snowden said he was afraid he could hold out very small hope for any reduction in the total taxation in the ensuing year. He could not see where any considerable reduction in expenditure could be made, except in armaments. The Government in the past 10 years had had a most difficult task with war debts and German reparation. It had dealt with them in a spirit of great magnanimity—he might say with quixotic generosity. Although he was in favour of the promotion of international goodwill, they need not think Britain could continue the policy of sacrificing herself financially in favour of others who were equally or better able to bear their own burdens. “I want to reaffirm that —to use Mr. Lloyd George’s own words—there will be no ‘shovelling out of public money to keep alive incompetent in : dustries,’ ” said Mr. Snowden. “There is a reasonable prospect, amounting almost to a certainty, that we shall get a little more than 20s for every pound of public money, provided the widest distinction is exercised between economy and parsimony.” Mr. Snowden said he hoped the present monetary position would be tided over without an advance in the bank rate, as the psychological effect of a rise would be injurious to trade and enterprise. He appealed to the city banking houses to exercise caution with regard to foreign lending where the exchanges were unfavourable.