CAB23-58 — Page 97

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the near

ture. He suggested that the Cabinet

should examine a proposal for an addition to the Scheme of Rating Relief whereby relief would be given to the railways in respect of coal, either for exportation or for use in blast furnaces This scheme, which might come into operation early in the Autumn, should have an immediate effect on those industries which were hardest hit. The cost was estimated at £4,000, 000 but some of this might be recoverable by reduced expenditure on unemployment, increased receipts from Income Tax and Super Tax, and in other indirect ways resulting from the stimulation of industry. Mr Churchill emphasized the impossi- bility of financing measures for dealing with unemployment without additional taxation, the nature of which he indicated and which he thought the Cabinet was unlikely to desire before a General Election, or, alternatively, by means of savings, postponements of expenditure on approved policy, etc., which he commended to his colleagues.

A third proposal which it was suggested the Cabinet ought to consider was one for a reduction in the cost of fares for emigrants, which might stimulate erigration apart from State-aided schemes, and which would enable emigrants to reach the Dominions without the restrictions which, according to the Report of the Industrial Transference Board, exercised a deterrent effect on emigratior.

agreed

After considerable discussion the Cabinet

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