BRITISH BUDGET EFFECTS

Taranaki Daily News, 30 April 1931, Page 7

BRITISH BUDGET EFFECTS

GOVERNMENT STOCKS RISE

“RELIEF THE CHIEF FEELING”

LIBERAL-LABOUR PARLEY ATTITUDE TO THE LAND TAX British Wireless. Rugby, April 28. The principal effect on to-day’s stock markets of last night’s Budget statement has been a good demand for British Government stocks, which showed a sharp appreciation. There was also a rise in the sterling dollar exchange on the proposed withdrawal from the exchange reserve fund. At the invitation of the Prime Minister the Liberal leaders, Messrs. Lloyd George and Sir Herbert Samuel, together with Sir Archibald Sinclair, visited Downing Street and discussed various matters, assumed to be related mainly to the Budget proposals, with the Prime Minister and Messrs. A. Henderson and J. H. Thomas, Foreign and Dominions Secretaries. It is understood ‘that the Liberal Party particularly welcomes the Government’s proposal for a tax on land values, although it will not conic into operation until the subsequent financial year. A full statement on the project will be made in the House of Commons on Monday by Mr. P. Snowden in the debate on the Budget, which will last several days. The debate was opened by Mr. Neville Chamberlain, who recently succeeded Mr. Winston Churchill as chairman of the Conservative finance committee. His main criticisms of the Budget were that the Chancellor of the Exchequer’s estimates were too optimistic, that he omitted to refer to the Treasury liability in respect of the unemployment insurance fund, or to indicate the sacrifices which he recently declared must be made bv all, and the proposals did nothing "to stimulate trade or give con- < slice to industry. The main feeling inspired by the Budget was relief. Sir Donald Mac Lean (Liberal) said that on free trade, economy and the taxation of land values they heartily supported the Chancellor of the Exchequer. They heartily approved of his proposals as emergency ones The Times is of the opinion that the Budget marks- the failure of free trade finance and makes a tariff inevitable.