Evening star., 1925-04-29
Britain's Economic Revolution.

An economic revolution occurred
yesterday in England when Winston
Churchill, chancellor Of the eXchequer.
announced the governments policy
with regard to the national finances.
First of all, il was declared that the.
nation would at once restore the gold
basis which had been set aside during
and for some years after the war. To
effect this the Bank of England is
licensed to export bullion, credits
tOtaling $500, 900 900 have been ar
ranged in the United States, and a
measure will be introduced for the
conversion of bank and treasury notes
into coin. Thus, by a combination of
measures. the currency of Great Brit
ain is to be fully stabilized with no
disturbance of international exchange.
But of far greater Importance is the
announcement OF a scheme of social
insurance safeguarding the whole
working class of Great Britain, which,
coming as it does from a Conservative
ministry, is significant of a great
change in governmental concepts. In
brief, this project contemplates an
.'old-age pension" sustained by joint
contributions of the workers, the EN-
ployers and the government. 1t will
affect the whole wage-earning popula-
tiOn. Thirty million persons. or 20 per
cent Of all the people, will be bene-
fitted. Each male wage Garner is to
pay pence a week into the fund.
each female worker pence and each
employer respectively, 4 and pence
for each male and female worker in
his hire. The contribution starts at
the age Of Is and continues as long as
the worker earns wages. The govern
ment will contribute the deficiency Of
the sum, up to the amount necessary
70 pay the pensions, which begin at
the age of SO years and will amount
to 10 shillings weekly for each person
whether continuing TO work or not.
Upon the death Of the wage-earning
husband the widow will get 10 shil-
lings week for life, with other funds
for children until they reach the age
Of IA The state will pay III shil1ings
a week for orphans. To make the
scheme selfsustaining the payments
by workers and employers will in
crease by decennial periods, until in
1856 their shares will be pence a
week for men and half of that for
women. The states contribution will
rise from f4,000,000 year in the third
year to f15, 900, 900 in the tenth and
f24,000,000 in the twentieth year. 1t
will take, according to the chancellor,
so years for the contributory system
to be self-supporting.
This project involves the replace
ment Of war pensions, which have
fallen d I'm f110, 900 900 in 1920 to f67,-
100000 this year, with peace pensions
underwritten by the state but financed
jointly by workers and employers. In
the words Of Churchill, "out of the
war loss shall be born a new social
order in which fear Of poverty and dis
grace shall be removed from the
poor
The spectacle Of a Conservative min
istry presenting so revolutionary a
plan Of financing will arrest the atten-
ton Of the world. The recent labor
ministry undertook nothing so sweep
ing in the way of social reform. 1t is
q sign of the changed conditions not
only in England but in Europe gen
orally that this proposal is made.
Coupled with it are financial meas
uTes Of tax reform and readjustment
that greatly strengthen the position of
the government.
With pound sterling practically at
par and Great Britain returning to
gold standard, lowering taxes and
launching a universal workers pen
sion system six and half years after
the close of the war. recovery Of that
. country from the conflict is fully es-
: tablished.