CRITICS OF THE BUDGET.

New Zealand Herald, Volume LXII, Issue 19008, 4 May 1925, Page 9

CRITICS OF THE BUDGET.

SILK DUTY UNPOPULAR. CASE FOR WORKING WOMEN. AN ALTERATION POSSIBLE. By Telegraph—Preßs Association —Copyright. (Received 6.5 p.m.) A. and N.Z. LONDON. May 3. An outcry has developed throughout the country against Mr. Winston Churchill's proposed silk duty. This has resulted -n the Budget of the Chancellor of the Exchequer being nick named " the Silk Stocking Budget." The Treasury has issued a statement to the effect that criticisms will be considered and that the export trade will be consulted. It is now declared that it is not intended to tax an article to the extent of one-third of its value because it contains a little silk. There is an immense range of goods in which a small proportion of silk is employed, and it is admitted that the effect of imposing a tax of ones-third on the full value of such articles would make the duty highly protective. ii io understood that Mr. Churchu! lias been in consultation with the customs authorities and that as a result a system of charging will be introduced which will be calculated to carry out the Chancellor's real intentions. Higher Cost of Stockings. The most pointed criticism of the silk duty came during the debate in the House of Commons. Miss E. Wilkinson, Labour member for Middlesbury, said that artificial silk had taken the place of wool among working women who could not afford to buy the latter. Silk was largely used for knitted jumpers which wofnen made themselves, and lib. at 3s was enough for a jumper. Miss Wilkinson proceeded to argue that a tax of 3s a lb. meant 100 per cent, increase, but a tax of 4s a lb. on the heavier silk, which was used by rich women, only meant an increaso of b6 2 3 per cent. Referring to stockings Miss Wilkinson said a. tax of 6d might, make no difference to a woman who bought pairs costing two guineas, but it meant an increase of 33 13 per cent,, to a woman who bought artificial silk stockings at Ls 62'' !l pair. Liberal Views Expressed. The Earl of Oxford and Asquith, speaking at GlasgO'V yesterday, said the silk tax was a tax upon the raw material of a great industry. Sir Alfred Mond, Liberal M.P. for Carmarthen, in a speech at Cardiff asked: " Why destroy one of the few prosperous industries which the country has?" He said it was a mystery as to who had advised Mr. Churchill to take such a stupid step. He was certain Mr. Churchill would be obliged to abandon the proposal. In an article in the Observer, the editor, Mr. J. L. Garvin, discusses the Budget. He says Britain has been kept down by unexampled taxation and no mortal man could put this situation right by one first Budget. The work can only be done by a connected series of Budgets. The nation never had a clearer and more grave duty than to strengthen the hands of its Chancellor. Modifications Predicted. Reynolds' News says the silk duty will be withdrawn and that the insurance proposals will bo modified, postponed or withdrawn entirely. The effect of such withdrawals would be to cut the heart out of the Budget. There is no doubt, however, that the Budget proposals are undergoing review at the Treasury and that modifications of the original proposals are not improbable.