MR LOWE'S BUDGET.

Star (Christchurch), Issue 344, 21 June 1869, Page 3

MR LOWE'S BUDGET.

I On the re-assembling of Parliament after

Easter, it fell to Mr Lowe to produce the first sensation. In his new character as Chancellor of the Exchequer, he introduced a Budget which has surprised the country by its originality — " the most ingenious Budget of the present century," says The Times ; one of the most remarkable in an age of remarkable budgets," adds the Economist. Contrary to all expectation, notwithstanding the Abyssinian bills, he was enabled to announce some considerable reductions in taxation, and to provide for the needs of the year, with the promise of a good prospective surplus. As Mr Lowe has been careful, on every opportunity, to repress all sanguine hopes, so he commenced his speech with discouraging details. The revenue of last year h*d, as Avas already known, fallen off about £500,000; which was, however, balanced by a reduction of expenditure to nearly the same amount Adopting this revenue as his estimate for the present year, Mr Lowe calculated his ordinary receipts at £72,885,000 ; but- although £2,261,000 have been 9aved by the "heroic efforts" of Mr Cardwell and Mr Childers, the expenditure cannot be taken at less than £68,223,000. This would give a balance of £4,632,000 ; but unhappily, the Abyssinian war absorbs another £4,6oo,ooo— having involved ua in a total expenditure of about £7,000,000 sterling — and thus the balance is reduced to £32,000. This was the kind of story everyone had expected, but by a magical wave of the financial wand, the genius of Mr Lowe soon showed another result. He spoke in a fitful, nervous style, distressing to hear ; aud the effect of his statements was further marred by his difficulty through short sight in reading the figures he had noted on his papers. There could scarcely have been a greater contrast than between his manner and the masterly ease of Mr Gladstone when occupying the same position. But as he developed his scheme, all defects were forgotten m the cleverness of his surprise. By changing the assessed taxes into licence duties, modifying the system of collection, and levying the land and houee duty and income-tax in one payment, somewhat in advance, for the whole year, he contrives to secure within the financial year additional revenue to tlie amount of £3,350,000. His plea for thus discounting future revenue is, that he not only meets an exceptional demand, but effects a much needed reform and reduction of expense in the collection of the taxes. With the sum thus obtained, the Chancellor proposes to remit ld in the income tax, reducing it from 6d to 5d ; to abolish the remaining ls duty on corn and farinaceous articles ; to surrender tlie fire insurance duty, so long contested ; r.nd greatly to reduce the taxes on locomotion. The licence to sell tea will no longer be required ; and there are other concessions. Londoners will especially thank Mr Lowe for his liberality to cabs and omnibuses, and tlie prospect he thus opens of better and cheaper transit over the wide spaces of their busy oity. After all is accomplished the Chancellor leaves a nominal surplus of £422,000. Nothing can be simpler than the 6cheme as propounded. Punch represents two " rival conjurors " as contending in the matter. " There is no deception," says Professor Bob, " the bag is empty. Hey, presto, pass ! " and he produces the egg — " Surplus I" " Why," responds Profes9or Ben. "We could ha' done that " — adding, after a pause—" if we'd on'y thought on it." Yet there are evident objections which wili be strongly urged. There are large numbers of Englishmen, for example, above the poorer class, to whom it will not be convenient to pay their taxes in a lump — especially in January, when the Christmas bills have thinned their purse. It is also suggested that the new arrangement would act injuriously on the money market — that it would fill the coffers of the Bank of England to excess at one season, and leave it poor at another. Mr Lowe answers smartly that "the money market must take care of itself ; " and that "if, after such notice, gentlemen cannot foresee, it is clear they have mis'aken their vocation."