London, Feb. 9.
The Government. regards the financial situation with. great anxiety, declared Me. Walter Runeinan) the President of the Board of Trade, when continuing the Taritt debate in the House of Com-ions to-day.
The country, he said, was still paying for the August crisis and the movement of capital abroad was causing uneasiness owing to the constant reduction of French ba-Tances.
"Ae could stand the strain well", he said, svbut if the pound showed further' signs of weakness, French and Italian. withdrawals would continued. "We could only meet the Position by reducing. the adverse Balance of trade and ceasing to live Practically half the work, stated Mr. Runciman, was working on sterling basis. "In. "Burope,—the Scandinavian countries were setting the pace and others would probably follow. If we balanced the budget fand reduced the adverse trade Balance there was no Feason why the sterling circle should not be extended, The strain on the direct taxpayers, however, he said, had gone far enough and must be reduced.
Mr. Runciman pointed out that the trade balance could no longer be allowed to settle itself, owing new factors in the situation, me cluding the concentration of gold in two countries, and the new customs boundaries.
Mr. Runciman justified the British tariffs by emphasising must be on a strong basi to enable Great Britain to purchase the food and raw materials. she wanted and to prevent undue importation beyond our purchases basis 10. per cent, custonts duty, he. estimated, "would raise pearly £20,000,000 revenue without Increasing' the cost of living and would thus give confidence abroad nour determination to maintain our currency.
conclusion, he stated that, the Government proposed to attempt ne~ gotiations with a view to the re-Auction of foreign tants, The House subsequently endorse ed the Government's fiscal policy by an overwhelming majority, a resolution giving effect to the programme of tariffs outlined by the Chancellor of the Exchequer being Passed by 452 votes to 7 'Thirty Liberals voted against the Government, including three members of the Cabinet, Sir Herbert Samwel, the Home Secretary, Sir Donald' Maclean, President of the Board of Education, and Sir Archibald Sinclair, the Secretary of State for Scotland.
The Parliamentary Under-Secretary for the Colonies, Sir Robert Hamilton, also voted against the Government, Feb, 11.
In the House of Lords to-day, Lord Snowden, as a member of the minority' free trade group. in the Cabinet, warmly defended the Cabinet'x "agreement to differ" on the Tarif Froe Trade in the Cabinet only on the condition that they had the same freedom te express their views on Protection as those who took an opposite view. If the decision of the Cabinet was interpreted in the letter and spirit of the Cabinet's official statement he believed the arrangement would be justified by results and that they would be able to continue to cooperate in the work for which the national Government was formed.
There was, he said, complete unanimity' in' the Cabinet on all other questions.
In conclusion, he stated that he would as soon trust the safeguarding of Pree Trade to extreme tariff Conservatives as to the Labour Party, whose present leader had at the election told them that in certain circumstances he was in favour of a 20 per cent. tariff Wireless through Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.