BRITAIN’S PURSE.

Taranaki Daily News, 10 June 1921, Page 5

BRITAIN’S PURSE.

MARKED REVENUE DECREASE. STEPS TO REDUCE EXPENDITURE. DECONTROL OF AGRICULTURE. By Telegraph.—Press Assn.—Copyright. Received June 9, 8.40 p.m. London, June 9. The decision to discontinue control of agriculture and abolish guaranteed prices and minimum wages resulted in a political sensation. The step is due to the fact that the Government is now thoroughly aroused to the gravity of the financial situation. It is pointed out that whereas the revenue since April 1 has decreased £lOO,000.000 compared with last year, the expenditure has only decreased £18,000,000. Thus far the expenditure has been £223,000.000 and the revenue £155,000,000. The State is losing £10.000,000 monthly on the railways. The scrapping of the farmers’ guarantee is not saving current expenditure, but the avoidance of what might become an unsupportable liability in' the future. There is certain to be a storm over the violation of the definite four years’ pledge to fanners. Other evidences of the economy scare at Whitehall are the disbandment of the reservists, changes in unemployment benefits, and the cutting down of State housing schemes. The change in the agricultural policy, it is estimated, will save £25,000.000 next year, but there is a danger of an agricultural strike if an attempt is made to cut the wages of agricultural workers with undue haste. —Aus.-N.Z. Cable Assn.