THE BUDGET SPEECH.

Auckland Star, Volume XXXV, Issue 95, 21 April 1904, Page 5

THE BUDGET SPEECH.

AUSTEN c.-aA tvtrv/nt. a. TTg» c j DEFICIT. t A CYCLE OF DEPRESSION. j DUE TO "GILT-EDGED SECURITIES." Proposed Restriction of Local Loans. <Ey Cable.—Press Association.—Copyright.) LONDON, April 20. The Chancellor of the Exchequer, Mr. Austen Chamberlain, in his Budget speech in the House of Commons," said the I great wave of prosperity had spent it- | self, and a cycle of less prosperous year 3 had commenced. It has been specially felt during the last six months, result- j ing in a shrinkage in trade, the lessening of employment, and a fall in wages, while foreign competition was keener. The revenue was £2,724,000 below the | estimate. The repeal of the corn tax had proved j more costly than was anticipated, while prices since the repeal showed that the I consumers had not derived the expected j advantage. j The deficit for the year was £5,415,000, necessitating a draft upon the Exchequer balance of nearly three millions. He also applied for £1,000,000 of un- I claimed dividends towards the deficit, leaving £1,500,000 to be finally met out of the surplus of current or succeeding years. The national debt amounted to £764,----500,000 being reduced during the year by £5,149,000. The local indebtedness of the United Kingdom in 1902 was £412.- j 000,000. The chief cause of the depression was gilt-edged securities. To enable national | securities to regain their old credit, the I Exchequer and local authorities must restrict their demands. He was considering the advisability of restricting State advances for local loans. The estimated revenue for the current i year from existing sources was £139,- | 060,000, and the expenditure £142,880,000, j leaving a deficit of £3,820,000. The increased income tax would yield two millions, and tea a similar amount, leaving a surplus of £730,000 towards recouping the Exchequer balance. In connection with the tobacco duty, it was proposed to raise the moisture ! limit to 32 per cent., and impose several i rates of drawback instead of one, there- j by considerably increasing the export j trade in manufactured tobacco and ci- j gars, especially with the colonies, which j at present were largely supplied, from Hamburg and Holland. PRAISE FROM THE OPPOSITION. And Some Criticism. I i Received 8.20 a.m.) LONDON, April 20. Sir Henry Campbell-Bannerman, leader of the Opposition, congratulated Mr Austen Chamberlain on his lucid and masterly statement. He applauded his courage in not trenching on the sinking i fund, but complained of the enormous i growth of expenditure. Such headlong j extravagance must be arrested. j Mr. Ritchie, in the main, approved of the Chancellor's proposals. Mr. R. B. Haldane (Liberal) suggested a Royal Commission to inquire into the incidence of indirect taxation. Sir Michael Hicks-Beach (Conservative) doubted tbe wisdom of increasing the tobacco tax and of imposing a shilling income tax in time of peace, a course which dangerously reduced the national resources in the event of war. He saw no sufficient justification for the increase in the navy estimates. RISE IN CONSOLS. NOT A DISSOLUTION BUDGET. r Motion Against the Tea-Tax. (Received 8.20 a.m.) LONDON, April 20. Mr. T. Lough (Liberal) moved an amendment rejecting the tea-tax in the interests of India and Ceylon, but this was negatived by 265 votes to 193. The tax was then approved by a majority of 81. The tobacco tax passed by 200 votes to 106. Mr. Austen Chamberlain has received many congratulations from members of Parliament and press. Consols rose when it was known that the sinking fund was untouched, and dealings in the street closed at 88|. The Budget is not considered a dissolution one. (Received 9.45 ajn.) LONDON, April 20. The amount of revenue the new tobacco duties are estimated to yield is £550,000.