The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-06
Budget Submitted to the Commons by
the Chancellor of the Exchequer
Calling for $77O,4IO,OOO.
NEW TAXATION NECESSARY
TOTAL WAR EXPENDITURE ESTI-
MATED At ABOUT S3OO,OOO, 900.
Methods of Raising Additional Rev
enue-The Budget Adopted After
Brief Discussion.

budget which was submitted this even
ing. explained by the chancellor of the ex-
chequer, briefly debated and then passed.
The House was crowded and all the pub
lie galleries were thronged in anticipation
of the budget statement. Sir Michael
Hicks-Beach, in introducing the budget,
showed that an expenditure of fl540S2, 900
had to be provided for in the budget of
1900-190l. The same statement showed that
the exchequer account of 1S99-19O0 would
have given a surplus of upward of 95,0OO,-
600, but that the supplementary war esti-
mates of e23. 900 made the expenditure
exceed the revenue by f17,770,00O. The
chancellor of the exchequer pointed out
that the country had to face a total esti-
mated expenditure, in consequence of the
war; less than six times as much as had
been estimated in October last. Against
the estimated expenditure of f1540S2 900
for the coming year, the chancellor of the
exchequer estimated the revenue, on the
existing basis of taxation. at ELF, 900. 600, or
a deficit of e37.OOO.0O0.
Dealing with the war expenditures, he
said the government had made the best
calculations as to the amount 1t ought to
ask from Parliament with the view of
successful prosecution of the war. But 1t
was impossible to be certain when the war
would be concluded, and the expenditure
might be larger. On the other hand. how
ever, a happy change in the military stu
alton and the fact that the season now
fast approaching was, in the opinion of all
authorities favorable to Boer operations
had to be considered. He might be obliged
in July or August to ask Parliament for
further relief. but he believed he was fairly
justified in hoping that the intended ex-
penditure would suffice to successfully con-
clude the war. He estimated the total war
expenditure. including the deficit of En-
10000, at 60,000,O0O.
INCOME TAX TO BE INCREASED.
The chancellor of the exchequer charac-
terized the suggested method of fresh tax
alton as in no way impracticable, saying
the government felt justified in raising a
portion of the war fund by loaH but, he
added, it was also justified in calling on
the taxpayers for an immediate and sub
stantial sacrifice. In this connection he
thought they could reasonably anticipate
that the more acute and more costly phases
of the war would not last long. He asked
the taxpayers to subscribe to the cost OF
the war by an increase of the income tax
to 1 shilling in the pound, producing an adj
ditional G6,5O0,0O0
Sir Michael Hicks-Beach also said that
in order to meet war expenditure OF
$50 600. 600 he would propose that the stamp
duties on Stock Exchange contract notes
be extended to sales on the Produce Elk
change; that the beer duties would be In
creased a shilling a barrel or thirty-slX
gallons; that there would be an increase
in the duty on spirits of six pence per
gallon and tea two pence per pound. He
anticipated that the above changes would
increase the revenue ei2.3l1.OOO and he
proposed to save G4,640,000 by suspending
the sinking fund in relation to certain an
nuities. He proposed to borrow the rest
of the necessary funds. A total OF
G43O00.O00 had to be raised, of which
8S, 100000 was now in the treasury and
e35, 100000 would be raised by bonds or
stock repayable in term not exceeding
ten years
During the course of his remarks, the
chancellor of the exchequer, referring to
his previously expressed opinion regarding
the capacity OF the Transvaal to bear a
responsible share in the expenditure of the
war, said he still adhered to that opinion,
but he was bound to say the events of the
last five months and the claims which
would undoubtedly be made by the loyal
oolonists of Natal for compensation for
losses sustained at the hands of the Beers
and the enormous increase in expenditure
since he last spoke, had made him feel that
the capacity of the TranSvaal to bear
the cost of the war was a less important
factor, though II was still an important
factor, than he estimated in October last.
PENURIOUS AMERICAN.
There had been remarkable increase
in the receipts from the death duties,
totaling Ell. .OOO of which e2.2zl. 900 was
from the estates of millionaries, including
9SOO.OO0 from the estate of one man. a
foreigner. who lived on fifteen shillngs a
L.. w II o1,,h That
person, he continued, however. unwillingly.
had contributed to the exchequer more
than the cost of an ironclad.
[The foreigner referred to is the late
George Smith, the pioneer banker OF Chi
cago. who died Oct T. 1899. in his rooms
the proposed loan, Sir Michael Hicks
Beach said he believed 1t would be mis-
take to try TO raise it by new issue of
consols as II would create permanent
debt which the nation could not pay off at
par until 1923. He thought 1T would be
better that part of the f3o, 100000 be re-
served. say an amount not exceeding
Go. 600. 900 for the further issue of treasury
bills. The rest he proposed TO raise by
bonds or stocks. He had reason to believe
1t was possible to place such an issue on
very reasonable terms and he hoped TO do
so in a way not to insure profit for a few
the whole public into the war loan and en-
able them TO come 10 the assistance of the
country
The opposition leader Sir Henry Camp
bell-Bannerman. said the opposition would
give every facility for the passage of the
necessary resolutions. He complimented
Sir Michael Hicks Beach on the straight
forward, statesmanlike and discreet meas
ures' proposed to deal with the financial
difficulties, and said he thought the gov
eminent would be met in no grudging spir-
it in prosecuting its financial propositions.
Very properly. he added, considerable
proportion of the burden would fall on the
shoulders OF the income-tax payers.
Timothy Healy, Irish Nationalist, pro-
tested against Ireland having to pay any
thing toward the war expenses. asserting
that not a penny had been expended in
Ireland. The tax on whisky, he further
asserted, was an attempt to bleed Ireland.
Let the diamond stock brokers'" contin-
ued Mr.. Healy, 'those who are making
money out of the war, pay the cost"
HARCOURT'S SARCASM.
Sir William vernon-Harcourt, Liberal.
complimented the chancellor of the ex-
chequer on the soundness of his financial
principles, but said the country would like
10 know how the government intended to
insure that the Transvaal would ultimate
ly pay large part of the cost of the war.
He added: 1T is said we are fighting for
liberty and freedom. so that then there is
a prospect of millionaires like Mr.. Belt and
Mr.. Rhodes having the taxation of the
Transvaal at their own disposal OF
course. the government WOULD not think of
depressing by "A centralized taxation from
for the war II would be interesting to know
how the government intends to realize on