SENATE COMMITTEE APPROVES
Washington, To-day.
The foreign relations commit- too of the Senate yesterday ap- proved the Administration's Nau- trality Bill, pormitting the sale of arms to belligerents.
The session lasted three hours. The Bill will be debated in the Benate on Monday--Router.
LONDON NEWSPAPER COMMENTS
London, To-day.
The wartime Budget was
THE CHINA MAIL, SEPTEMBER 29, 1939.
BRITAIN'S DETERMINATION TO AVOID INFLATION: BEST FEATURE OF THE BUDGET
London, To-day. APPROVAL
CITY CIRCLES ARE UNANIMOUS that the best
features of the budget is its implied insistence to OF BUDGET
PROPOSALS
avoid inflation:
This determination is typified in the choice of sound financial methods of raising the huge funds which the Government deems necessary.
London, To-day. The Commons debate on
The new taxation appears to be fairly spread over all classes the budget resolutions was of capital and consequently it is not expected that any resumed in Committee of section of the Stock Exchange will be heavily affected Ways and Means. as witness yesterday's precautionary lowering of prices with the subsequent recovery on more mature con- sideration of the situation.
Yesterday's reduction of the bank
prised the City.
In effect the latter was financed ment paid unduly dear for war loans
welcomed on the whole by rate to three..per. cent. has not sur-largely by inflation and the Govern-
·
yesterday morning's news- papers.
The "Daily Telegraph" and "Daily Mail" believe that the full weight of the new taxation might have been imposed more gradually.
Both these journals, together with "The Times," say that the Chancel lor's statement on avoiding waste in Government expenditure must be
fulfilled.
The "Daily Express" agrees
with the "Daily Mail" in wanting a more gradual imposition of taxes, but says: "Nobody here, or anywhere, can now doubt our intention to take the war seriously."-Reuter.
NAZI TRADE VISIT TO YUGOSLAVIA
Belgrade, To-day.
A German economic mission arriv- ed in Yugo-Slavia yesterday.-Reuter.
effect
Although no Immediate on the frozen gilt-edged market is expected, the psychological in· fluence on the restoration of fin- ancial confidence is of prime` Im- portance.
Well-informed circles believe that it
1
because investors
Mr. Pethick Lawrence (Labour) said the Chancellor was right in de- ciding to start at once with heavy new taxation.
He had imposed unprecedented burdens. Unpalatable as it may be, I
am forced to the conclusion that the Chancellor's prospective taxation for could not lend
1940/41 of which he spoke yesterday, cheaply when it was expected that cannot be his last word. The new money would have a lower purchas-direct taxes: are heavy but are re- ing power by the time the loans were cognised as necessary. repayable.
CHEAP MONEY
This time the Government's objec-
is not intended to allow existing gilt-tive seems eschewing inflation, cou- edged minima to be further reduced pled with the cheapest possible money owing to the necessity, sooner or later, for defence loans.
of new defence loans-Reuter.
FALLING INTO FINANCING SCHEME
London, To-day.
As City authorities generally ex- pected, the British monetary authori- ties to-day reduced the bank rate to three per cent, thus taking the first step towards facilitating defence bor- rowing,
With Wednesday's budget, this re- duction seems to fall into the co. ordinated scheme for financing this war more efficiently than the last.
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Traditional justification for a high bank rate as tending to re- press borrowing for civilian pur- posao, no longer obtains because all types of lending are now di- rectly controlled.
Similarly the bank rate is no longer needed to protect sterling now that exchange control insulates the Lon- don money market from foreign dis- turbances.
The City is discussing the possibility of a subsequent further cut restoring the bank rate to two per cent.-Reu- ter.
DEBATE IN HOUSE
OF COMMONS.
London, To-day.
The Budget debate was resumed in the House of Commons when satis faction was expressed in all quarters at the reduction in the bank rate.
Further reduction to two per cent. was strongly urged."
A hope was expressed that the gilt- edged market on the Stock Exchange function as soon as possible.-Reuter.
SWEDISH STEAMER TORPEDOED
Turning to the indirect taxes, Mr. Pathick Lawrence said they must be, and would be, borne with fortitude.
The lowering of the bank. rate from 4 to 3 per cent. was warmly welcomed by the Labour, spokesman who, how- ever, urged an early restoration of the pre-war rate of two per cent.
INTEREST RATES
He showed concern that in ap~ proaching the programme of war borrowing, the Chancellor should see the Treasury took appropriate steps to keep down interest rates.
This point was taken up by the Liberal speaker, Mr. Graham White, who also urged the importance maintaining low interest rates.
of
Sir. J. S. Wardlaw Milne (Conserva~* tive) accepted the Budget with deep resignation, saying the whole coun- try was anxious to help the Govern-- ment in every way.
A WARNING
(National"
Sir George Schuster Liberal) a well-known financial ex- pert and former Finance Member of the responsibility of Government to the Government of India, spoke of have well prepared a policy for mo- bilising the resources of nation in such a way as to keep them fully em- ployed by absorbing any left idle as the result of the drastic curtailment of private activities which the Bud- get proposals would effect.
Several speakers dwelt on the im- portance of economy.-British Wire- less.
Stockholm, To-day.NEW MARKS
A 3,300-ton Swedish steam-
er was sunk off the Nor-ON DUTCH
wegian coast yesterday by a torpedo or mine.
The crew were rescued by a Nor- wegian destroyer.
They said their ship had been sunk by a German submarine.-Reuter.
Oslo, To-day.
AIRCRAFT
The Hague, To-day.
As from Sunday, Netherlands mill- tary and naval aircraft are to have new markings.
The Swedish cargo steamer Nyland An orange. triangle with black: has been sunk outside territorial edges will be painted on the wings waters off Stavanger yesterday mofit, and sides of planes, and the rudders ing.
will be painted in the same colours.
It is presumed that she had been-Reuter, attacked by a foreign submarine crew. Twenty-nine, comprising the whole of the crew, had been rescued by Norwegian warships-Reuter.
SOVIET MINISTER TO BULGARIA
Sofia, To-day. The Bulgarian Government has ap- proved the appointment of a Soviet Minister to Bulgaria.
The post had been vacant for some timeRouter:
SOVIET-HUNGARIAN
BORDER CONTACT
London, To-day. Russian troops have contacted Hun- garian border guards at two points in Ruthenia, Reuter.
Budapest, To-day. Soviet troops have reached the Hungarian Frontier and after ex- Changing courtesies with Hungarian frontier troops have taken up new positions near the border-Reuter.