THE IMPERIAL BUDGET

New Zealand Mail, Issue 1678, 27 April 1904, Page 61

THE IMPERIAL BUDGET

A CYCLE OF LESS PROSPEROUS YEARS, LONDON, April 20. Mr Austen Caamherlain, who succeeded Mr C. T. Ritchie as Chancellor cf die Exchequer when the British Cabinet was reconstructed towards the close of last year, lias delivered his Budget speech in the House of Commons. Mr Chamberlain said the great- wave of prosperity which had been experienced oi late had spent itself, and a cycle of less prosperous years had commenced. Tins had been specially felt during the last six months, and had resulted in shrinkage of trade, lessening of employment and fali of wages, while at the same tune foreign competition was keener. The revenue was £2,724,000' below the estimate. The repeal of the corn tax had proved more costly than was expec to 1, while the prices obtained since the repeal showed that comsumeHrs had! not derived the advantage which had! been expected. 4T!he deficit fox* the year wad £5,415,000, necessitating a. draft upon, the Exchequer balance of ixeanly three millions, air Chamberlain also applied! for a million of unclaimed dividends towatos the deficit, leaving It millions to be finally met out of the surplus of the current or succeeding years. The national debt waff now, £764,500,000. It had been reduced! during the year by £5,149,000. The Local indebtedness of the United Kingdom in 1902 was £412,000',000. These were the chief causes of the depression l in gilt-edged securities. To enable the national securities to regain their eld, credit tho Exchequer i and the local authorities must restrict their demands'., Ho was considering the advi.sableness of l restricting State advances from local loans. Tlbe revenue for the current year from existing sources would be* £136,060,000, and the expenditure £142,260,000; the deficit, therefore, being £4,820,000. The Budget proposes that the income tax shall be increased Id, and tea 2d. It also provides for a new duty of 3s 3d on tobacco stripped before importation, an additional 6d on cigars’, and lfi! on cigarettes. Mr Chamberlain, in explaining these ■proposals, said that the increased income tax would yield £2,000,000, and the additional duty on tea a similar amount. This would leave a surplus of £730,000. With a view to recouping the Exchequer tho balance, it ivas proposed 1 ,, in reference to tobacco, to raise the moisture limit to 32 peir cent., and impose several rates of drawback instead of one. 1 The result of this, he said, would be Co considerably increase the export trade with the colonies in mantifactored tobacco, cigars especially, which at present were largely supplied from Hamburg and Holland. TThe deficit in 1903 was £32,932,000. which was met to the extent of £29,875,000 by the proceeds of tne consols loan. The South African war had involved an addition to the National debt of £159,000,000, and a sum of about £4,500,000 was required for interest on this sum. Last year’s Budget included proposals for the remission of the corn duty and a reduction of the income tax by fouruence.l Sir Henry Campbell - Baunerm.an, ; leader of the Opposition, in a speech on the Budget, congratulated Mr Austen Chamberlain, Chancellor of tho Exchequer, on his lucid and masterly statement. He applauded his courage in not trenching on the sinking funds, and' complained of "tho enormous growth of the expenditure Such headlong extravagance must, he said, he arrested. The Right Hon O. T. Ritchie, exOhaincelior of the Exchequer, in the main approved the proposals. The Right Hon. R. B. Haldane, Liberal member for Haddingtonshire, suggested that .a Royal Commission should inquire into the incidence of indirect taxation. Sir Michael Hioks-Beaeh doubted the wisdom of increasing the tobacco tax. Increasing the income tax in, time of peace dangerously reduced the national 1 resources in the event of war. He saw no sufficient justification, for increasing the Navy Estimates. Mr F. Lough, Radical member for Islington, moved an amendment rejecting the tea tax in the interests of India and Ceylon. The motion was negatived by 265 votes to 193, and the tax was approved; by a majority of 81 votes. The tobacco tax was passed by 200 votes to 106. The amount of. revenue from the new tobacco duties is estimated to yield £550,000. _ . Mr Austen Chamberlain has received many congratulations from members of Parliament and press. Consols rose when it was known that the sinking fund would bo untouched. Dealings in the “street” closed at £BB 7a 6d. . The Budget is not considered a dissolution one. LONDON, Apriil 21Imperial console are quoted; at £BB 2s 6d, tthe price at which they stood fast Friday. LONDON, April 22. The proposal to increase the income tax was approved in the Hows© of Commons by 214 votfces to 16.