BRITISH TARIFFS

Wairarapa Daily Times, 12 May 1932, Page 5

BRITISH TARIFFS

ECONOMIC PROBLEMS. MR. N. CHAMBERLAIN’S VIEWS. LONDON, Wednesday. Responding to the toast of the Government at the Bankers’ annual dinner, the Chancellor of the Exchequer, Mr Neville Chamberlainfi said that tariffs alono would not euro existing difficulties. Industry aided by the Government’s monetary policy must do this. Sterling AA'as no longer anchored to gold, but had not materially left the level suited to the needs of industry, though its equilbrium Avas at present unstable. The tendency existing for great accumulations of liquid capital to concentrate in sterling exchange had disturbed traders in Britain equally Avith those in India and other countries Avitli currencies linked to Britain’s. He hoped that special measures like the exchange equalisation account Avould become unnecessary. The Government desired to do everything to raise sterling prices to a level permitting remunerative trade, but this could not be accomplished Avithout international co-operation. Mr Chamberlain emphasised that tho Budget approached the limits of the amount obtainable by direct taxation, but said that the real relief of the taxpayer Avould involve uncontemplated changes in national policy, nevertheless, if more drastic reductions in expenditure Avere necessary, responsible citizens c ould be trusted to support the Government. Judging from their headlines, tho newspapers attach the utmost importance to Mr Chamberlain’s speech, \A-hich is described as a grave warning. The “Sun” understands that the Government is preparing further drastic economies in the neighbourhood of £50,000,000, involving cuts in education, research, housing, and several State subsidies.