BRITAIN'S FINANCES.

Wanganui Herald, Volume LIII, Issue 15956, 27 October 1919, Page 5

BRITAIN'S FINANCES.

TALK OP BANKRUPTCY RIDICULED.

Australian and N.Z. Cable Association. LONDON,, October 25. The House of Lords discussed the financial situation.

Lord Buckmaster favoured a large increase in income tax instead of a capital levy or levy on war profits, though all three were possible remedies, especially the tax on war profits, which would thus restore to the community money which should never have been lost.

Lord Milner said there was nothing in the position to justify talk of bankruptcy. The British financial situation was less serious than in any country except perhaps the United States or Japan. The panic which certain newspapers were fomenting was due to an unjustifiable belief that the Government did not realise the gravity of the situation. It was unwise to adopt ill-con-sidered measures. “The wolf is not at the door/ 5 said Lord Milner. “A levy might do irreparable mischief to the recovery of trade. We certainly ought not to take more income tax from incomes under ,£ISOO sterling. People with small fixed income suffered the most as a result of the war. We ought to stop the waste involved in the unscientific use of raw materialsj and should not bewail the reduced coal output when we might get double value by better use thereof. The country ought to develop electric power, wireless communication and new forms of transport. There is also a mine of wealth in some of the Undeveloped colonies and protectorates. There is danger of getting into the habit of regarding ourselves as a poor country.”

Lord Milner added that he agreed it was only fair that people who became enormously rich as a result of the war should make a special contribution to relieve the country’s burden. He could not say whether execution of that principle would produce such confusion as to us, and so many individual acts of injustice as to compel its abandonment, but the present deserved careful study and consideration..