MOST VITAL YEAR IN HISTORY

Timaru Herald, Volume CXLVIII, Issue 21788, 18 October 1940, Page 7

MOST VITAL YEAR IN HISTORY

Financial Course Must Be Sound Air Raid Victims To Be Compensated British Official Wireless (Received October 17, 6.30 p.m.) RUGBY, October 16. Speaking at a luncheon where he was the principal guest Sir Kingsley Wood (Chancellor of the Exchequer) said the great gap between wartime expenditure and revenue could be filled only by Inflation or taxation coupled with real savings made to the point of sacrifice. So far the Government policy had enabled inflation to be avoided but the danger was ever present if a sure and safe course in financial policy was not followed. Stating that taxation was only a bare part of the expenditure the Chancellor of the Exchequer emphasised the importance of savings. “We are facing the most difficult and vital year in our history and no half measures will

suffice. For their part the Government must do everything possible to create conditions under which the maximum response to Government loans and appeals for national savings can be fully attained." It had been suggested that money was held back from Government loans by many people because they were uncertain of their financial position should their property and belongings be damaged in an air raid. He hoped shortly to introduce a measure which would remove this perfectly natural apprehension by providing full compenes”jn for loss or damage caused by enemy action. A scheme relating to buildings would be financed by compulsory contribution by property owners aided in certain eventualties by the State. The other scheme which provided for opportunity to insure personal effects would be voluntary, while that dealing with insurance on plant and machinery would in general be compulsory. These schemes would be retrospective to the beginning of the war and would remove uncertainty and go far to maintain confidence.