BURDENS HEAVY.

Sun (Christchurch), Volume VI, Issue 1787, 5 November 1919, Page 11

BURDENS HEAVY.

BUT SHOULDERS BROAD. BRITISH FINANCIAL OUTLOOK. , SETTING WORLD AN EXAMPLE. By Cable — rrcss Association. — Copyright. Australian and X.'i. Calle Association. (Rec. Nov. 5, 11.55) LONDON, Oct. 28. There Avas great public interest in the debate begun in the House of Commons on the question of national expenditure. Mr Chamberlain opened with the Government motion, "That the House, realising the serious effects upon trade and industry of the enormous financial burdens resulting from the War, promises hearty support to the Government in all reasonable proposals, however drastic, for the reduction of expenditure and the diminution of the debt." No Reason for Panic. While the position disclosed in the recent White Paper was grave, there was no reason, for panic. The situation to-day was better than he had anticipated in August. The tax on revenues was coming in extraordinarily well, while Customs and excise duties were now estimated to yield £38,500,000 above the Budget estimate. The tea and tobacco Bud§et estimates would also be exceeded y £4,000,000 and £14,000,000 respectively. This was important, as it Was eloquent of the spending power of the people, which was a great factor adke in social stability and revenue production. Indeed, he no longer thought that new taxation would be required to balance the incomings and outgoings. Dealing with the increase of expenditure over the Budget estimate, Mr Chamberlain mentioned that Italy and France owed us much more than was anticipated. Replying to denunciations of the administrative expenditure, he declared that, if the whole of the organisations created by the War were swept away, and the staffs of all departments returned to pre-War salaries, only £22,000,000 would be saved. He announced that the unemployment donation would-cease on November 21. As regarded the bread subsidy, the Government thought it impossible to terminate it immediately. Army and Navy Reductions. He proceeded to announce drastic and immediate Army and Navy reductions, namely— Home Forces by 217,000

Bhlne Army by .. 116,000 Army In France and Flanders by.. 130,000 Army In Black Sea by 6.000 Army in Egypt and Palestine by .. 22,000 Army In Mesopotamia by 7,000 These reductions would become effective by November 15, while by December 1 the army in Mesopotamia would be reduced by 94,000, including Indians. The naval reductions included five batleships of the Home Fleet gone into special reserve, and one for sale. There had been large cancellations of- ships under construction, showing a saving of £18,000,000. The permanent personnel of the Navv would be reduced by 16,000. This showed that Great Britain was leading the way In disarmament among the nations of the world. The Capital Levy. Yiv Chamberlain proceeded to deal with various proposals to reduce the National Debt. He; denounced a general capital levy'because it was unfair, and encouraged extravagance. It was detrimental to the influx of foreign capital, and, if once introduced for good, the public would feel no security against its introduction for other purposes. The question of a special levy on profits accumulated by reason of the "-ar stood on a different footing. He did not dispute the equity of the. abstract principle of such a tax, but the difficulties were immense. However a select committee would be appointed \o advise the Government.

He concluded by prophesying that a substantial surplus would be available in 1920 for the reduction of the debt without additional taxation or borrowing. Our burdens were heavy, but our shoulders were broad. There was every reason for caution, but none for panic. Mr Churchill stated that owing to the reduced armies of occupation Germany's indebtedness was reduced to £48,000,000. The amount •would not be received this year, although Germany had paid about £1,000,000 in currency for the use of the troops in Cologne. Dominion Indebtedness. The Dominions owed the War Office £50,000,000 in connection with the maintenance of troops in the field in war-time. He now anticipated that owing to financial difficulties in Australia they would receive only £15,000,000 out of the £35,000,000 allowed for in the Budget, but the other £20,000,000 was a good debt, on which the Dominions were paying interest. Other Amounts. He pointed out that £67.000,000 out of £118,000,000 not in the Budget was the War Office deficit. It was constituted of deferred payments, The remaining £51,000,000 was accounted for by increased pay to the army, the railway strike, the rupee exchange, and small unanticipated delays in demobilisation. At present there were 80,000 troops on the

Rhine. By November there would be 45,000 which immediately thereafter would be reduced by 12,000. We were guarding 188,000 Germans in France, and were dispersing, as fast as possible, 100,000 Chinese native labourers. Situation in Russia. He optimistically reviewed the situation in Russia. General Denikin had now gained enormous territory, including the richest part of Russia and a population of 40,000,000. General Denikin had taken 270,000 prisoners since May. In March, when the serious fighting began, there were 430,000 Bolshevik troops and 320,000 anti-Bolsheviks. By September there were 640,000 Bolsheviks and 640,000 anti-Bolsheviks. General Denikin had been advised that we expected his forces to become self-supporting by the end of the present financial year. Meanwhile, Cabinet approved of a final contribution to General Denikin of surplus stores valued at £15,000,000, which were dispatched gradually during the winter. Hence we were approaching the end of our own entanglement in Russia in a way which was securing the same objects as those of the anti-Bolsheviks. He hoped net to be accused of militarism. Great Britain alone among the nations of the world had taken steps which would shortly abolish conscription. It was the only country in Europe which practised what should be preached, and translated sentiments of the League into a great, swift policy of disarmament.