GREAT BRITAIN’S FINANCE

Taranaki Daily News, 26 July 1929, Page 9

GREAT BRITAIN’S FINANCE

NO REDUCTION IN TAXATION ECONOMIES TO BE EFFECTED HIGH BANK RATE FEARED By Telegraph—Press Assn.—Copyright. Australian Press Association. Received July 25, 10.15 p.m. London, July 25. The Chancellor of the Exchequer, the Rt. Hon. Philip Snowden, was the principal guest at a bankers’ banquet at Mansion House last night, when he declared he was afraid he could not hold out much hope of any reduction in the total taxation during the immediate year. Mr. Snowden could not see where any considerable reduction in expenditure could be made except in armaments. The Governments of the past decade had had a most difficult task in arranging war debts and reparations and they had dealt with them in a spirit of great magnanimity, he might almost say quixotic generosity.

Although he favoured the promotion of international goodwill and of helping those in need, Mr. Snowden did not think Britain could continue its policy of sacrificing itself financially in favour of those equally or better able to bear their own burdens.

“1 want to re-affirm there will be, to use Mr. Lloyd George’s own words, ‘no shovelling of public money’ to keep alive incompetent industries,” continued Mr. Snowden. “There is a reasonable prospect, amounting almost to certainty, that we shall receive a little more than twenty shillings for every pound of public money, provided the widest distinction is exercised between economy and parsimony.” Mr. Snowden hoped the present monetary position would be tided over without an advance in the bank rate, the psychological effect of which would be injurious to trade and enterprise. He appealed <to city banking houses to exercise caution in regard to foreign lending where exchanges were unfavourable.