The Indianapolis times., 1931-09-11
BRITISH SPEED
new AK AND
TAX PROGRAM
Macdonald Moves Rapidly
to Put Drastic Budget
Plan in Effect.
HECKLED BY LABoRlTES
Premier Defends Course
Adopted to Avert Ruin
for England.
BY KEITH JONES
United Press stan Correspondent

United Press stan Correspondent
LONDON, Sept. IL. = Premier
J. Ramsay Macdonald moved
swiftly today to make Immediately
effective the severe taxation and
economy program by which the
three-party government hopes to
save the country from its financial
difficulties.
Moving the second reading Of the
national economy bill in the house
of commons, Macdonald explained
that it empowered the government
to issue orders-in-council (enact-
ment of laws without parliamentary
sanction) which would be effective
for only one month and could be
issued only within month of en-
actment of the present bill.
The orders-in-council, which
have something of the semi-dicta-
torial effect of the government by
decree" in Germany, would have
the same effect as acts of parlia-
ment, he said, and could be altered
only by act of parliament.
Labor BOOes Speaker
Anybody who ever had been a
member of the government, he said
would agree with the efficiency OF
the procedure, adding, II am speak
ing for labor" The labor opposition
laughed and interrupted Mac
Donald, turning to them. said:
They can take the label from
my back, but they can not take the
label from my mind"
Supporters of the government
cheered.
Macdonald, with his chin thrust
forward, retorted crisply to numer-
Gus Interruptions by the laborites
while reviewing the recent labor
governments discussion of the crisis
and Thursdays budget before its
resignation.
He contended that the funds for
relief of the unemployed could be
reduced either by a direct cut or by
imposing "a 10 to 20 per cent rev.
enue tariff on imports and making
the cut indirectly"
The laborites cheered and Mac
Donald proceeded:
COR you can do it this way-the
most disastrous of all wayS-allow
the value of your currency to 60
down without care or control, with
out rhyme or reason, because OF
super-excited public opinion.
Prefers Other Course
"My colleagues and I prefer tc
take the straightforward way ano
take so much per cent off upon the
basis of the decrease in the cost oi
living and the increase in the value
of money"
Retorting to Laborite interjec-
tions, Macdonald said, Il have
known you of old"
"You would not be there but
for u.s." a Labor member shouted.
II have great knowledge of you
which comes from very intimate
friendship" Macdonald replied
"and insofar as I am concerned, the
friendship never will be diminished
=. When we were in office the last
time in 1924 and the election came
every platform rang with Labor
candidates asking the working
classes to vote for Labor govern
ment because of what it had done
for unemployment"
The "aX and tax" nightmare be-
came reality Thursday when Chan
cellor of the Exchequer Philip
Snowden announced his budget pro-
posals which, with rigid economies
in government operation, will over
come budget deficit of 1888, 400 900
Every Glass to BE Hit
The salaried worker will give the
government 25 per cent Give shil-
lings in the pound income tax; la
borers will pay one penny (twc
cents) more pint for their beer;
the rich will pay a super tax of IL
per cent and higher on unearne6
incomes; automobile owners viii
pay an additional cents a gallon
(total Is cents) on gasoline; tobacco
manufacturers will pay higher taxes
on leaf tobacco. although the I'M
perial Tobacco Company announced
that retail prices would not be ad-
yanced.
All who attend theaters and cine
mas will pay an entertainment tax
of 16 2-3 per cent.
While taxes are increased, unem-
ployed workers will find their bene-
fit (dole) decreased 10 per cent: DO
licemen will take wage cuts starting
with five shiilings a week for pa
trolmen: all civil servants wages
will be cut, beginning with 20 pei
cent reduction for the prime minis
ter and cabinet members; defense
service. road funds. and pensions
will be slaShed.
Expects to Get Surplus
Snowden expected to collect ap-
proximately S200,000,000 in new
taxes this year and $400, goo 900 next
year. With economies in govern
ment operation, the additional taxa
ton viii wipe out huge deficit and
create a surplus.
The labor opposition was voiced
by John r. Clynes, member of the
.'ecent government. who moved tc
reject the bill. He presented ar
amendment. which, while recogniz-
ing the necessity Of preserving the
nations finances. declared against
accepting proposals which deprive
the masses Of the people of the ne
cessities OF life whilst others remain
in enjoyment Of luxuries."
This is more than an economy
BILL" Clynes said. at is a bill tc
suppress the opposition; silence the
minority and make a mere mockery
pf parliamentary government"