Evening star., 1935-04-18
BRITISH BUDGET
POLICY IS HAILED
Balancing Looked Upon
Here as Encouraging Sign
of World Recovery.
BY DAVID LAWRENCE.

Britain's balanced budget, even
though 1t makes no provision for pay
ment this year of the war debt, is
looked upon here as an encouraging
sign of world recovery.
While some members of Congress
naturally lose no opportunity to call
attention to the British failure to pay
America any installment on the war
debt, Just as some Labor members of
Parliament are jibing the British
government about 1t, the fact remains
that nobody who has studied the
facts of the British problem i'm
partially has any criticism to make
of the British policy.
The British have taxed their peo-
pie so deeply that the tax burden Is
at the back breaking point. No
American Congress has ever levied
taxes comparable to the British rates,
and there are, moreover, practically
no exemptions among those of lowest
income, something unheard OF in the
United States.
The British government had its
choice of paying something on the
debt to America or reducing the
heavy taxes Under such conditions,
what WoulG. an American Congress
have done? The cry would have been,
America first and foreigners after
ward" This, at least. would have
been the politically chosen slogan.
Danger of Communism.
The danger to the British govern
ment has been that communism or
fascism would come in from CONT
mental Europe. Taxes are so high
that the morale of the British people
Is the most important consideration
of the London government. To keep
the British democracy intact against
the tide of continental unrest Is prob
ably an important consideration, TOO,
to the rest of the world.
The surplus in the British budget is
about S2,000,000 but it would have
been far greater If there had been no
tax reductions. No British ministry
would have remained in power 10
minutes had it proposed to pay Amer
ica s379, 100000. which is the amount
due on the principal and interest OF
the war debt, especially when England
is not receiving any payments from
the European countries to which she
loaned originally sum approximately
equal to that which is now owed by
England to the United States.
The British have attained q bal
anced budget by rigid economy in
governmental expenditure and by
painful taxation. The growth OF
prosperity under this policy has
heartened the British people and
given them a feeling that the worst
phase of the economic depression Is
over for them. Britain Is in a posi-
ton, therefore. to buy more American
products than heretofore. Already this
is apparent in the growth of certain
exports to the United Kingdom as
compared with last year.
Adjustment Is Forecast
What the ultimate disposition Of
the war debts will be nobody can now
foresee. but there is every day here
more and more of a tendency to
become realistic with respect to them.
The British are not going to leave the
war debts forever unpaid, despite the
frequent charges of reputation which
are made in the halls of Congress.
At some future time, form of COM
pensation or settlement of the war
debts, whereby trade advantages val
liable to the United States may be
attained, will be brought forth and
the whole question adjusted salts
factorily.
The total amount due from Britain
today is approximately $4,000, 000, 900.
This is about equal to the sum au-
thorized in a single session of Con-
gress for relief purposes. The British
were given about 62 years to pay 1t of.
America nowadays would probably
spend the British payments-if they
were forthcoming-in created work"
or leaf-raking, or other intangible
enterprises. Some day, when curren-
cies have been stabilized, the British
payments may come in handy. or
even a lump sum may constitute a
valuable asset in reducing the enor-
nous public debt now being piled up.
Congratulations in Order.
The most encouraging thing to any
creditor is for his debtor to get him
self into a sound position 50 that,
indeed, the debtor shall be able to
finance without borrowing any more.
America will be jubilant when that
day arrives in Washington. The Brit
ish have attained the goal for two
years straight now. This means that
some day they will be able to make
some adjustment on the American
war debt, and that complete repudi-
alton of the debts of preceding gov
ernments, which German Fascism
and Russian Communism have pro-
claimed, is not to be the policy of the
government of Great Britain, for
which fact. 1t is felt by many observ-
ers here, there ought to be congratu-
lations sent across the seas from the
American Congress instead of the
pointed reminders that England
couldn't balance her budget If she
paid America her war debt INSTALL
Ynent