Money and Markets
HONG KONG DAILY PRESS, TUESDAY, SEPTEMBER 15, 1931.
0
ocension of the desultory and very liticians to whom the votes of the anconvincing debate which took dolees are far more precious than place on the day before, on the the interests of the country." The subject of national economy. In Committee, incidentally, his sünie. view of the "how) of dismay with very nasty things to Pay About which the Society of Civil Serenndidates for Parliament who NATIONAL ECONOMYational economy, reprinted from
vants has already greeted the promise reformas un the price of the August issue of The Metal enemy proposals of the particu support, such reforms being in fact EXPENDITURE. --
mostly of the nature of privileges Industry, may prove of interest-
lar Commission charged with
or benefits for particular classes. To the Macmillan Report on reference to Civil Service employ- at the cost of the general taxpay- Finance and Industry, havo sucment in so far as they enibody sug- corded, with formidable rapidity, the Report of the Royal Commis gestions for reduction in rates of sion on the Civil Service, an in-pay, it is safe to predict that the RECOMMENDATIONS INVOLVE lerim report of a Royal Commis- May Report will ovoke a very VERY HEAVY SACRIFICES.alon un Unemployment Insurance, pandemonium of excuration and
and the Report of the Committee presided over by Bir George May In view of the recent recommen-on National Ixuenditure That dutions of the British economy report was published on Friday, Committee, and the new Butget and was not therefore available taxation the following article" on to Members of Parliament on the
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Widen Basis of Income Taxation. The Committee, intent on effect ing economies by cutting down oxpenses, has nothing to say on the subject of reducing the impend abuse from the numerous privileging deficit by the nerantivo plan ed and shaitored classes of the of raising the revenge, except, community upon the emoluments of very properly, to deprecau, in whom the Committee sucks, in the principle, incrended taxation gen interests of the country as a whole, orally and increased income taxa- to lay a ruthless hand. If it he tien in particular. Yet there is a true that a deficit of at least possibility which should be widely £120,000,000 is looming and the entertained in the existing omins May Committee is hardly likely to ous circumstances--the simple ox be mistaken in so vital a mottorpedient of widening the basis of it is quite clear that savings on income taxation. If the working scale commensurate with auch an classes had to pay share, how- appalling deficit must either be ever small, of direct income tax, made, or bankruptcy ensue. The instead of merely having it "hand- alternatives, which might stay, ed on to them in higher commod but could hardly be expected tity prices and lowered wages, they definitely to postpone that calwould realise just how intolerable lapse, are increased taxation, or it is, and how expensive grandioss further borrowing, if in the state social services can be to those who of the country's finances, a loan have, willynilly, to pay them for he considered a feasible expedient the benefit of other people. Muni We doubt whether the credit of cipal extravagance, too, is often the Government would be regarded concealed from those whose raten na sufficient for any operation are paid with the rent, and who
Arale,
imagine that, the on so stupendous a.
sheltered,” dustman's handsome amoluments are derived solely from squsezing the landlord. It is a thousand pitics so much personal resporal- bility has been spared the work era; it has served only to confus and to mislead them. When de- mocracy realise that it has to foot the bill it may be relied upon to see that its chosen representa- tives become less lavish with its money..
Redressal of Abuse Reeded; Although there is one grave ob. jection to the heavy reductions the May Committee recommends in the salaries and wages of civil ser vants, Board School teachers, policemen and State pensioners of All classes, an objection with which we shall deal later, no one who, realises the immense amount of harm the dole has caused, mor
If-and it is a very big it-the ally as well as materially, to the country can fail to welcome the Government adopt the major r proposals for reductions in the commendations of the Committee existing scales on which it is paid on National Expenditure, there pur. Indeed, it is a pity thay the Com- will be very severe cut in mitteo did not make the farther chasing power. We have heard a Huggestion that all unemployment great deal about the need of in
The relief should be given in kind, increasing purchasing power. stend of in currency, die provi- Committee is silent as to result of sion being made for the inclusion decreasing it, which would seem to to be the obvious effect of putting of rent relief as well: There are besides, many abuses the redressal into operation the wage, and other It is to of which would afford further cuts, they recommend, means of economy, and even of this aspect of the suggestions we tangible improvement in the con referred above as being open to a ditions of the unemployed them-grave objection. It is, too, an on- selves, such, for example, as projection which is sure to be loadly vision for casual employment, voiced. It certainly scema anoma without jeopardy to such addition lous to suppose that, in the pecu al, but lesser relief that they liar circumstances in which the might need, in the event of their country finds itself, economics being allowed at least to do some effected by the reduction of the thing for themselves towards earn community's purchasing powor can ing part of their livelihood. How stimulate trade and industry. Yet ever, the existence of a collateralwe believe the objection referred Committee charged with the duty to is one of form rather than of of looking into the matter of substance. In the case of the the dole led the May Committee dolee, for example, his purchasing to regard details f ita adminis-power is comparatively negligible tration and distribution- as be so far as any stimulus to trade ja yond the scope of its own refer-produced thereby; his needs are ence. It ennfined itself, therefore, fixed, and his expenditure cannot to broad and general recommen-expand. The extent to which it dations estimated to effect econo will contract can do' little harm. mice under this hend, and in a On the other hand, the cost of complete year's working. of no maintaining in idleness 80 large less than £60,500,000-no meani n proportion of the community is a sum in the circumstances. How very heavy burden on those still- ever great the volume of noisy prdeariously in employment expostulations to be expected from the lesser victims of the, May axe Government -assuming that the
A.0.F. C. Average of Shanghai Stocks
TWENTY REPRESENTATIVE STOCKS
May Committee Right. To the support of ench family will ever allow it to fall-the "on the dole" every werker con hullabaloo from twin and a half tributes, whether he knows it of weekly, not, a substantial sum: million or more unemployed: may well be anticipated to be deafen-made up from the higher commo-
ng. It will fall, moreover, on
dity prices and rent the head of sympathetic cars those of the po. the family has to pay, and from the lower wages with which, owing to the state of trade, be has to be content. In respect, too, of many of the other cuts made in wages and emoluments, the effect will permente the whole industri- al system, and by decreasing costs make business inora profitable and real wages. more valuable. We' be- Here that the May Committes are advocating the right thing. We wish we could believe that Parlin- meat will adopt these heroic re- commendations. We doubt 1. The stuff of which members of Parliament are innde is not heroic. In any case the country will not, now, have long to wait to see who ther its chosen representatives bare national economy at heart cr whether all that has been said of, late about it is mere lip-servic and eyewash.
|AMERKAN Örental Emaner, LANPORATION
11 KANKING RAKS
We have referred to the doubt which may reasonably be enter tained as to whether the Govern mont, in the event of its prefer ring to raise a loan with which to bridge the inevitable deficit anti- cipated in the Budget next year, would succeed, by such means, in raising -the " necessary, funds, £120,000,000 is a very large sum, The conversion projects of the Chancellor of the Exchequer have already had to be postponed to a more hopeful occasion, which seems still to be in the far dis tant future. The country has been But several of the leading stocks 1 Market sentiment is still good, largely depleted of its gold, less, had no rallying, power, and the and there are no indications of a probably, owing to the demands of market turned easy, The extended reactionary market. Some issues France and of America for 'new Further irregularities have been risc from August to September 4, like General Forgs are still in degold than owing to withdrawal of was impressive and a resting period mand, and a firm tone is notice funds already belonging to those noticeable in the Shanghai Market is normal for the leaders of the able in groups in which good busi- countries, and hitherto held, or during the past week, although the advance,ness returne have been reported for their accounts, in London, and te AOF:0 Average established a new In-going up, the market was led the current year the action of many sections of the high for the year at 25.61 on first, by one group, and then in turn The statistical record of the home community who have bought foreign credits in preference to September 1 The recession from by several other prominent issues. A.O.F.C. Average follows: this point has been resisted and at in this manner an effective advance
Jary 6. 21.10keeping their money, or their in one time it looked as if forces werewas staged that allowed stocks to High for year September 4, 28.61 vestments, in their own country, gathering in the market, and the consolidate gains under the most Recent low paint Augusti8, 20,64 Both movements have been stimp advance was to be continued. favourable conditions.
September 6, 20.20 (Continued on Page 10):
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