THE BUDGET.

Evening Star, Issue 15916, 23 September 1915, Page 3

THE BUDGET.

TAXATION OF WEALTH LIGHTER THAN EXPECTED. THE PROPOSALS ADOPTED. . LONDON, September 21. In introducing the Budget in the House of Commons Mr M'Kenna further said that in future the wage-earner would be treated like anybody else in respect to Income Tax, while, an excess profits tax would be charged on the profits of any business except agriculture, .whether the profits were made on war or not. “Wo treble our debt and double our taxation.” If the war continued, his proposals were not the last word. The Chancellor of the Exchequer urged increased personal economy, and continued : “ The wealthy man’s lot is not a happy one when ho is called ’ upon to find £34,000 in a given time. It can be done, and if necessary further burdens can be met. A sudden blow, however, might cripple the individual. The tax upon excess business profits will bo charged upon the business for the vear between September. 1914, and July, 1915. There will be a 50 per cent, tax upon profits above £IOO over the previous year’s profits. This tax, after deducting the Income Tax, amounts to 60 per cent, of the profits. A 50, per cent, duty upon cocoa will amount to £29O,(XX). “The board controlling the liquor traffic have imposed restrictions where necessary, and these have already resulted in a considerable reduction in consumption. The perusal of returns showing the countries supplying our imports gives good reason why motor cars, etc., were chosen, and men’s and women’s hats included. “ The estimated revenue for the next financial year is £387.000,000. If we are wiling—or. rather, as we are willing—to bear the burden—(cheers) —we shall bo able to do so. We accept the burdens of taxation, partly because they limit our power to consume.” FEELING OF RELIEF. There were 94 questions, and it was thought some would be postponed. The delay was great before Mr M'Kenna was able to unfold his statement regarding the burdens, which, on the whole, were lighter than was generally expected. It gratified many that the Income Tax touched the weekly wage-earner, and greatly delighted the happy possessor of an income of £IOO,OO0 —his annual tax will not be more than £34,000. The new duties are not in excess of general expectation. . The existing low rate of the Income Tax is Is 6d ; a 40 per cent, increase means a minimum of 2s Id. The existing higher rate is 2s 6d; a 40 per cent, increase means a maximum of 3s 6d. MEMBERS’ CRITICISM : A BLOW TO FREETRADE. Mr H. Chaplin said he was glad mosllv on account of the Customs duties. All classes would willingly contribute, remembering that it was for their country, their homes, and England. (Cheers.) Sir F. Banbury said that if too heavy a burden was laid upon the wealthy it would involve a difficulty in getting loan money. Excessive taxation was certain to cripple industries. He was tempted to propose an excess tax upon wage-earners the same as upon manufacturers’ war profits. One reason of the present great expenditure was that the Government paid through the nose for everything. Mr A. P. Houston said it was possible, after the war profits and supertaxes were paid, for a man with £IOO,OOO nominal income to find it a minus quantity. Mr T. Lough complained that the Government were giving a fictitious exaggeration to figures regarding the war cost. They were entitled to an explanation of Mr Asquith’s prediction that it would reach £5,000,000 daily.

Sir T. M._ Healy said the present state of .affairs showed that the Freetrade fetish was dead, and the bottom had fallen out of the Freetrade pot. Mr L. Hardy declared that the former must have capital if he was expected to respond to the appeal for increased production.

Mr M'Kenna replied fhat agricultural profits were not taxed. ( Mr -1. G. Butcher congratulated the Chancellor on his proposals to raise a gigantic revenue with reasonable fairness to all classes.

Mr Onthwaite said the striking feature of the Budget was that the Freetrade policy had been scrapped. He believed that the taxation of imports was a sop to the tariff reformers in the Cabinet. Waste revenue in the commercial world and from land was not touched, and must he taxed in the future or they would go towards Protection.

_Mr _ M'Kenna,, answering a question, said it was obvious that only a small part of the deficit could be met bv taxation. They must borrow on a future occasion. It was essential to reduce imports, because they could not increase exports, as our own capital and labor were otherwise engaged. Thev could not do with too much taxation without interfering with the industries upon which our export trade depended. Resolutions embodying the Budget proposals were agreed to unopposed, some Radical protests against the tea and sugar duties being adjourned. PRESS COMMENT. Newspapers describe the Budget as a bie and bold one. The ‘Daily Graphic’ regrets the absence of a war tax on all "letters and a small weekly tax upon wages collected through the employers. The chief difficulty m the increase of the tobacco duty wuil be the price of the cheap packet ot cigarettes. It is questionable whether it is possible to retail five cigarettes for one penny. ~ trade fears that the abolition of the halfpenny postage will kill the picture postcard craze. The duty on kinematographs applies to 80 per cent, of the films shown, of which 00 per_ cent, are American. It should resu t in a considerable exploitation bv English firms, hut may be met by a general increase of prices of admission The Labor party will meet to-morrow to _ discuss the Budget. Some members object to the tea and sugar duties and lowering the Income Tax exemption. TRADE WITH ENEMY. SYDNEY, September 22. Jho Australian Metal Company, Ltd were to-day fined £25 on a charge of attempting to trade with the euemv. In the Amalgamated Wireless ‘Companv case, in which the companv and three du-ectors-E. Fisk, C. P. Bartholomew, and H. R. Denison-—were charged with trading with the enemy (the case arising out ot a transaction for acquiring the Telefunken Company’s rights in Australia) the Magistrate fined each of the directors £lO and the company a similar amount the Magistrate said the defendants had traded with the enemy within the meaning of the statute, but it was not a case calling for drastic punishment, there being the mitigating circumstances that after the war began the defendants offered the Commonwealth Government the services of their wireless staffs, and this assistance was availed of. They also acted on len-al advice. a Six other cases which had been listed were withdrawn. CIVIL SERVICE REGULATIONS MELBOURNE, September 22. The Federal Government have decided that' all examinations with respect to appointments and promotions in the Public Service shall be suspended, and that no permanent appointments be made in the Public Service or under the Defence Act of persons between the ages of T8 and 45 years until six months after the termination of the war.

THE HOSPITAL SHIP MARAMA. His Excellency the Governor requests us to state that pillow slips for the hospital ship should be 20m by 30in, this, he is informed, being a stock size, instead erf tlie dimensions previously given, and that the size of Hie pillows could be reduced accordingly,

GIFTS FOR PHILOMEL. [Per Ukited Press Association.] WELLINGTON, September 22. The Defence Minister has received a cablegram from the captain of H.M.B. Philomel stating that the mufflers, socks, etc., shipped on August 5, have been received. The officers and men wish their sincere thanks to be conveyed to the donors. letter from late colonel BAUCHOP. The following is an extract from a letter from tho late Colonel Bauchop, written to a friend in Dunedin, and dated July 10, 1915: “I am writing this on a destroyer, where 1 have come only to point out targets to the sailor bold. They help us day and night. When lam on shore I look out from my dug-out on the JEgean Sea, which is divinely blue, with those purple islands 15 and 20 miles off, and there constantly is our Navy, from battleships down to torpedo boats, all going at it hard, as we are, and that is about 25 hours a day. I was at Hellas the other day, and saw the French, British, and Indian armies attacking shoulder to shoulder. It was most interesting to see the Senegalese troops there sitting in the breaches made by our Queen Elizabeth guns on the oldest fort in the world. We saw the plains of Troy, too. The climate is beautiful here, the terrible Turk the only drawback.” OTACO PATRIOTIC AND GENERAL WELFARE ASSOCIATION. The lion, treasurers of the Otago Patriotic and General Welfare Association acknowledge the receipt of the following donations to the fund : Previously acknowledged ...£46,889 11 5 Employees A. and W. M‘ Carthy w 1 5 0 Proceeds of entertainment by N.E. Valley Church of Christ w 410 0 Employees P. Hayman and Co., monthly contribution b 3 0 0 Employees J. Thompson and Co., four weekly contributions b 18 0 Collected in August, per Mrs Jackson— Employees J. Sparrow and Sons b 1 510 Employees J. Sparrow and Sons w 2 5 2 Sundry collections ... b 8 15, 7 Mornington September collection, per Miss Rattray and Miss Geerin b 61 8 5 Staff A. Moritzson and Co., 10th weekly contribution w 5 0 0 Dunedin staff Bristol Piano Co., 14th fortnightly contribution .’ b 3 8 6 Infants of the M onion a School b 0 5 6 “5.J.,” September contribution u 10 0 Wakari residents, per Mr Jas. Moir, school master, Wakari w 141 10 0 £47,124 12 6 b denotes Belgian relief fund; w denotes wounded soldiers and their dependents’ fund. IN TURKISH HANDS. Under the heading, 1 Somewhere in Asia Minor, July 15,’ Lieutenant ——, who was reported missing, writes to his mother at Lismore, New Soth Wales : “ I am in a Turkish internment camp, somewhere in Asia Minor. 1 am quite well, and my arm is almost better. lam with a lot of other officers. There are some from the submarine Uls, and also some from the Australian submarine AE3. We also have French and Russians here with ns, and we form a lively entente. I am learning the Turkish and French languages. A submarine officer teaches me French. When I come home I '"’ill be -talking all sorts of gibberish. I am living real well, but it is a lazy life. I study most of the day, and play bridge or_ chess at night. It was 'hard luck being captured within seven weeks of getting a commission, as it did not give me a chance; but 1 did my bit, and now am tied up till the end of the war. : The Turkish officials are exceedingly kind and courteous. Most of the time I was at their headquarters, and in Constantinople was more like a guest than a prisoner.”

FROM A MAORI BRAVE. CHAHACTERISTIC LETTER. Private Huiriia Eewha, of the Maori Contingent, writes from Malta, to his father and mother at Rawhiti : “ Come to me, go from me, mv letter of love to m yparents. Rewhi and Mae. Vaguely the thought steals through my mind that this is my last letter. That is why I greet you thus. So, again, goodb\o to all at home, to all my relations who live there, and whom I did not see before leaving. Only if luck guides mv steps shall I return.' Greetings again to you all. For the order has come that we are to move to the forefront of battle, to enter the scorching flame of the firing line. For many days have we been quite ready, as, of course, we bad agreed to go. So never mind. Forget not to write to me. There was no special reason for me to write this letter, beyond this fact: that we Maoris are now "off to strike—to finish what we came here for. Th© head officers of our party are here aftergreeting us, and are now instructing us in methods of warfare. Your letter of love has com© to me. I am well : mv only grief is I hear nothing but the English voice. It it so; therefore, I must not grieve. 1 now feel my spirit, my soul, my whole bodv is not mine now Lever mind. Mac, I shall try to follow and carry out your written wishes. May you all live and keep well during this year of the big fight. Now, R.ewhi. if my body be lost and I pass away into the night out of this world, von are to go to the Kororareka Post Office; the money will be there for you. As Te Kavi is a rangatira, take him to assist you in th© matter. If I live I shall receiye d. That is all: but mv thoughts will be of you both till I die. Mav th© Creator keep you all in your doings at home. Love to you. and to you. mv mother, and to all the home people.” OTAGO PATRIOTIC AND RECRUITING COMMITTEE. A meeting of ihe above committee was held in the Town Hall on Tuesday, Lieu-tenant-colonel Stoneham presiding. The Minister of Finance . (Sir J. G. Ward) wrote saying that there was little prospect of his coming to address recruiting meetings until Parliament dissolves. The Prime Minister also wrote stating his inabilty to come down until the session terminated. The Mayor of Waikouaiti wrote stating that no results would be obtained in the event of a recruiting meeting being held at Waikouaiti. The Chairman reported that it had been arranged for a speaker to attend a meeting at Balclutha on Wednesday night, but unfortunately the meeting was not held. It was reported that permission to have recruiting cards in the car* was granted. A letter was received from the Otago Hospital and Chaiitable -Aid Hoard with reference to free dental treatment of recruits. -It was decided to hold this over until the next meeting. The Chairman reported that five recruits had been obtained at the last meeting. Mr R. W. Glendining was appointed a member of the committee. Mr and Mrs Washer wrote tendering their resignation, as they are leaving Dunedin.—lt was decided to accept the resignations with regret, and the secretary was instructed to convey to Mr and ” Mrs Washer the committee’s appreciation of the many services they had rendered, and to wish them success in. -their new home (Timaru). It was resolved that the next recruiting meeting be held at the Town Hall on Saturday. A discussion took placo with reference to the welcome accorded to returned troopers, _ and the committee expressed their opinion that, unless a hearty welcome were extended to those returned from the front, it would prove detrimental to recruiting.