Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-12-02

forced England into waging and they
promptly made those appropriations with
out waiting 10 hear IL the country could
afford the luxury Of a war or not. II that
unhesitating action might be interpreted
as delicate compliment to the saEacitN 4
the chancellor Of the eXchequer, It was fully
justified. for Sir Michael Hicks-Beach has a
plan.
To begin with. an unusually prosperous
season helped him In estimating at tho
beginning OF the fiscal year, on the prob
able receipts and disbursements Of the gov
eminent during its course, the chancellor
chose not To err on the side Of optimlsm--
consequently his balance sheet shows sur
plus of Si5"oo.ooo which can Immediately
be utilized for war purposes. As for tho
balance of So. 600 600 still to be reclaimed,
Sir Michael will depend on the issuance Of
treasury bills TO the extent Of Sio,obO,Ooo-
thus setting his figure five millions ahead
of actual requirements. TO allow FOR mis-
calculations. He has no idea, however, OF
placing so large an amount Of treasury
bills on the market at once, but VIII issue
them only as occasion demands. Consider
able sums have also been promised him by
the commissioners for the redemption Of
the national debt-to he taken from tho
resources in their hands belonging to the
savings banks deposits. Through this
course of action any disturbance OF the
money market Will be avoided.
No less than three other plans Of finan-
cial campaign have. however, suggested
themselves TO the chancellor. They were
a possible suspension Of the payment Of
the national debt, the addition ot a penny
or Of two pence to the income tax, and an
increase I'm the subjects Of imports on
which a duty IS charged. What renders Gil
three OF these suggestions impracticaple Is
the fact that seven months Of the parlia-
mentary year-which begins in Aprll-al-
ready have passed. The suspension Of pay
ment on the national debt for the i've re-
naming months would, fnanciers have adj
ViSed the chancellor. be almost barren OF
results. As for the income tax, 1t has been
made plain that while Sir Michael believes
that the people affected by this taX-al
those whose incomes are $500 or over
should pay their share, and possibly
heavy share, Of the war expenses; sun, lie
is convinced that to Increase the nations
resources by an addition to this tax alone
would be emphatically unfair and inequita-
BILE. 1t is likewise clear that an IN
crease in the subjects of indirect taxa
ton for SO short time would simply
defeat its own ends, for the reason that
the persons dealing In the dutiable COM
modities would reduce their purchases to
the lowest point pOssible-sO that the GUS
toms receipts on those subjects might fan
short of what they are at present, instead
of netting an appreciate Increase.
The Question of Payment.
Although the men who are looking after
the finances Of the British nation are very
far from saying. in the manner Of the man
in the gal cry, What does It matter2"
they do not propose to be over-hasty in
their anxiety TO pay for this war. Parlia-
ment has voted the money-enOugh for the
present, at any rate-and the chancellor
OF the exchequer has told where that money
is TO come from; about paying it back
again there is no hurry. and unless funds
should run out before parliament reassenl-
bles in the natural course in April, the
question Of payment will not be considered
until then. When payment is made, the
funds probably vii be raised by means of
a uniform tax. and of this tax the Beers
will have to stand their full share, ana per
haps more too. Britain claims that they
brought on this war and that they ought 10
pay for good deal of it. The Transvaal
is rich in Its gold fields. and although one
of the constant complaints of its inhabi-
tants has been that the taxes on these
fields are excessive, the chancellor OF the
eXCheQuer steadfaStly believes that, under a
pure and equitable admins ratiou OF fits
public affairs the Transvaal. besides sup
porting its own government, could furnish
appreciable assistance toward tho payment
of the new floating war debt.
However. although no one IS worrying
over the payment OF the war bill at pres
ent, when the time for Its consideration
GENES short shift will be made OF It, lt
Is definitely known that Sir Michael Hicks
Beach hopes that it may be paid off In the
year following next year-19Ol.
If, however, Sir Michael Hicks Beach had
thought 1t wise to make an increase in the
Income tax it wou q have been by no means
the nrst time that an action of this kind
had been taken in an emergency brought
about by war. Such an increase was made
in the years from 1864 TO 1867 by Lord Bca-
coustteld to provide for the extraordinary
disbursements caused by the Abyssiniau
war; and In 1884 Mr.. Gladstone followed
his example with an increase of penny
on account of the Bechuanaland and SOIL
dan expeditions. In both Of these years,
however, the income tax stood at five pence
on the pound instead Of eight as at pres
ent, the increased tax being the result OF
the immense additions to the British army
and naval forces. As for the national debt
payment on that colossal liability was slis-
pended as q war measure by Mr.. Gladstone
in 1855. Again, in 1894 an attempt was
made to increase the revenue by an
additional tax on spirits. The only re-
suit was the entire disorganization Of the
liquor trade. and little, If any, addition was
made to the revenue for the period during
which the increase was in existence
ID Al