FRIDAY, APRIL 22, 1932. BRITISH DETERMINATION.

Taranaki Daily News, 22 April 1932, Page 6

FRIDAY, APRIL 22, 1932. BRITISH DETERMINATION.

London, newspaper comment on Mr. Neville Chamberlain’s first Budget is almost as interesting as the Budget itself. There is disappointment because it contains no promise of remission of taxation; it is even sterner than the least hopeful prophets anticipated ; it is a hard Budget; again, it is a “carry on” Budget and proves that Great Britain is by no means out of the wood. But if there is disappointment, there is no evidence of protest. The Daily Mail probably represents the general opinion when its says the Chancellor of the Exchequer has faced the gravest situation courageously and firmly, and that his measures will greatly enhance his reputation and strengthen foreign confidence in the solidity of British finance. None but a brave man would have faced the respon' sibilities which Mr. Chamberlain undertook last December. A year ago Mr. Snowden budgeted for a revenue of £803,500,000 and a modest surplus of £134,000. Five months later, when the formation of the National Government. became necessary, it was obvious that the revenue must be far below the April expectations, and the Exchequer was threatened with a deficit of nearly £75,000,000 on the year’s working, while it was predicted that the adverse balance in the following year might reach £170,000,000. Mr. Snowden had to revise his figures, and when he handed over control to Mr. Chamberlain the policy of increased taxation and drastic economy was already in operation. Thanks to the new Chancellor’s firm and courageous handling of his stupendous task the year was closed on March 31 with a balanced Budget. It was a wonderful achievement, made possible not only by wise direction in official quarters but also by the loyal co-operation of the British people. The economies undertaken by the Government meant considerable sacrifices throughout the country, and the demand for revenue strained the resources of the taxpayers to the very utmost. The year had been one of anxiety, difficulty and hardship for all classes, Mr. Chamberlain stated in presenting his Budget. Taxes had had to be met out of capital, but the magnificent response of the taxpayers showed the sense of duty and citizenship for which the British people could always be relied on in time of trouble. It is, of course, because heroic efforts have been put forth during the past few months that until the presentation of the new Budget everyone hoped that some measure of relief would be possible. Hopes have been disappointed, but Mr. Chamberlain’s refusal to lighten the tax burden, even to the extent of a reduction in beer duty, will not be regarded as cause for despair. He is able to say that Britain is “beginning to see light between the trees” and to claim that the revival of trade and the reduction of unemployment—work has been found in the past year for 250,000 persons—lead to the hope that “the worst has passed.” That is, of course, the justification for the Budget now presented. It is only the worst that is over; Britain, in common with other countries, still has to face very real difficulties. By straining every nerve and employing all her financial resources she has been able to put hei’ affairs in order. The question is whether she can now begin to take advantage of the results of her effort; whether the new financial year will give her better opportunities than the last did. In one sense there can be no room for doubt on that point. The British taxpayers will begin this year to reap the rewards of their sacrifice provided they continue to do their utmost. That is why Mr. Chamberlain has produced a “carry on” Budget. He is compelled to continue along the lines followed during the past six month, and he therefore has no spectacular change of policy to offer. He cannot alter the scale of income tax por reduce the beer duty, but because he knows the payments will be less this year he has to seek revenue from new sources, and he expects to obtain it through the tariff. A duty on foreign tea, with a preference for Empire tea, is mentioned, and other details are to come later. There is one other proposal in the Budget which discloses the Government’s policy, and that is the plan to authorise the borrowing of £150,000,000 in order to build up an exchange equalisation account. Britain must remain off the gdld standard, but she cannot allow sterling to be subject to the dangers of violent fluctuation. She had to borrow last year in order to prevent loss of confidence in sterling, or rather to stem the process, and what is now proposed is simply to have funds at call in order to prevent the exchange rising against sterling too abruptly. With this safeguard the Government will be free from such anxiety as it had to face last August, and there will be no sinister influence to check internal efforts to maintain equilibrium. This is the more likely because the Budget shows the world that Britain’s determination to overcome her economic troubles is as strong as ever, and therefore that confidence in her ability is justified. Once more she offers an example to the whole world. Britain has demonstrated that the way to

bring about better conditions is by honest effort and cheerful sacrifice. She is beginning to see the light between the trees because she has pledged herself to pay her way and honour her obligations.