BRITAIN’S CREDIT.

Waikato Times, Volume 110, Issue 18406, 13 August 1931, Page 7

BRITAIN’S CREDIT.

BANKERS’ PLAIN WARNING ALL PARTY CONFERENCE LIKELY LOAN' CONVERSION SCHEME. United Press Assn.—Elec. Tel. Copyright. LONDON. August 12. Tlie Daily Mail’s city editor says one of the chief reasons why Mr MacDonald hurried back to London was the receipt oi a serious letter addressed to the Government by City of London bankers. it was couched in the plainest terms, and urged drastic retrenchment, in order to re-establish Britain’s credit.

The political correspondent of the Times says prominent bankers attended during part of the five hours’ conference between Mr MacDonald and Mr Snowden, both of whom are absolutely determined to balance the Budget in 1932. It was decided to summon the Cabinet’s Economy Committee to-morrow instead of at the end of the month. Its meet! V s 'Till probably toe Hollowed by a conference between members of the Cabinet and representatives of the Conservative and Liberal parties, although there is no question of inviting the other parties to join a National Government.

The Dally Telegraph says it gathers that the Government hopes to arrange, possibly next week, a joint conference with the leaders of the Conservative and Liberal parties regarding the measures necessary to reduce the abnormal expenditure, in which event Mr Neville Chamberlain will represent the Conservatives and Sir Herbet Samuel the Liberals. The Ministry argues that the carrying out of tlie recommendations ot the Economy Committee's report involves contentious legislation, for which the whole House of Commons must bear the responsibility. The Daily Herald says bankers favour the Australian scheme of conversion. They argue that while a normal conversion has no chance at present, an appeal might be made on the ground of a national emergency, which would carry weight, if the large holders, such as banks, agreed to the proposal. The conversion, it is estimated, will save between £20,000,000 and £30,000,000 a year.

LATER. ECONOMY SCHEMES. CONSIDERED BY MINISTERS. BALANCED BUDGET DESIRED. ('jmclal Wireless.) (Received Aug. 13, 10.30 a.m.) RUGBY, Aug. 12. The Cabinet sub-committee —consisting of Mr Ramsay MacDonald (the Prime Minister) Mr Philip Snowden (Chancellor of the Exchequer), Mr W. Graham (Presdent of the Board of Trade), Mr A. Henderson (Foreign Minister) and Mr J. H. Thomas (Secretary for the Dominions) —to advise the Cabinet regarding the recommendations of the committee appointed in February at the request of the House of Commons, to review national expenditure, met for the first time this afternoon, and after a session of nearly four hours adjourned until to-morrow. The sub-committee is In possession of the observations of all the Government departments affected by the proposals of the Economy Committee, which is estimated to effect a reduction in expenditure next year of £96,000,000. The sub-committee will decide, after a study of the proposals, the general direction in which the economies will be made in order to provide for balancing the next budget.

It is denied that there are any differences between Ministers with regard to the Imperative necessity of a balanced British Budget, which the Dally Herald to-day describes as an “integral part of the world’s financial security.”

It Is understood that to-day's meeting explored the whole ground, and dealt generally with the situation. After to-morrow the committee is not expected to meet again until Monday. It is hoped it will be possible at the next stage to evolve consultation with the representatives of the two Opposition parties, but nothing definite is known as to the Government's intentions.