The age-herald., 1901-04-19
THE TWO WARS ALMOST RUIN
 GREAT BRITAIN Heavy Tax is Levied to Garry Her Through the
 Crisis, EXPORT DUTY PUT ON COAL South African War Has Cost E15t,- 100000, Almost Twice as Much as the crimean War-Debts
 Are Increasing.
EXPORT DUTY PUT ON COAL

London, April 1S.-The exceptional in- terest taken in this years budgets state- ment was evinced by the crowded condi- ton of the House of Commons when 1t reassembled today. The attendance of members was unusually large, while the appearance of the galleries testified to the deep interest of the public in the fresh taxation proposals required to meet the expenditure for 19O1-1902, which according to a Parliamentary paper issued this aft ernoon. totals f1s7. CO.,, ,oO0 inclusive of war charges, this being an increase of f32, 9Ol 900 over last year.
 The national balance sheet for 19Oo- 1901 as shown by the same paper stands as follows:
 Revenue, E130,3S5.
 Expenditures. f1S5, 1892, 0OO
 , Net deficit, f53, POT, ,OOO.
 The government budget, as announced today, adds pence to the income tax, making 1 shilling and pence. It does not provide an increase in the duties on beer, wine or tea, or spirits or tobacco A duty of As 2d per hundred weight will be imposed on refined sugar; duty of 2s per hundred weight is imposed on mo- lasses. West Indian sugar is not excepted.
 A duty of one shilling and 8 pence per hundred weight is imposed on glucose. A shilling per ton duty Is imposed on ex- ported coal.
 Raw sugar polarizing below ss is to pay a duts 2yradgaliy diminishing, according to each degree of polarization. to mini- mum of two shillings at a polarization of 76
 The total expected yield of the new taxation is i'll, ,OO0 900, of which f2, 2,100.0 900 will be from coal.
 The chancellor of the excheQuer asked for permission to extend the present bor- rowing powers to borrowing on consols.
 The chancellor of the exchequer pro- posed to suspend the sinking fund and borrow f6O,000 900.
 The deficit, f53, POT, ,000, showed that they had paid f15, ,413,0 900 out of the revenue for the cost of the war. The total amount provided by the state last year aggregat- ed the enormous sum of f19S,346,00 900.
 ''As to the national debt," said the chancellor of the exchequer, 1t stands in painful contract with last year. But the funded debt has decreased by 1.425,- GOO. April 1 the nationad debt stood at f6S7 ,5O0, 900, an increase of f55,0O0,O00 on account of the war"
 The Present War.
 Turning to the present year the char cellor of the exchequer said that the to- tai estimated expenditures was f1S7, ,600,- 000 On the existing basis 1t was esti- mated that the revenue would be f132, 255, 900, leaving a deficit of about f55, ,500, 900.
 How is this deficit to be met?" asked Sir Michael. 'I will never be responsible for the fatal policy of paying the whole cost of the war out of loans without pu, ting a reasonable amount on the taxpay CTS of today The real difficulty, how ever, is not so much the cost of the war in South Africa as the operations in China, as they will increase our ordinary expenditures even if the war comes to an end within three or four months (this statement caused cheering from the Irish members) or sooner than the honorable members suppose. Our ordinary expendi- ture would not permit of the remittance of the additional taxation proposed for war purposes last year. It therefore be- comes necessary to put our expenditure on broader bases. The country has reached a point when 1t is necessary to widen the scope of taxation, but direct taxpayers must bear their share of the burden. I propose that pence shall be added to the income tax, making l shill- ing and pence in the pound. The extra pence will realize f3,S000oo. There will be no addition to the beer, wine, tea, spirits or tobacco duties.
 '"The average consumption of sugar Is f56 per head Sugar is taxed in every other community in Europe and Is taxed in the United States. In this coun- try taxes were raised on sugar long after the institution of free trade. What pro- pose is not a protective duty but an adequate public necessity has arisen for some duty of which the laboring classes should bear fair share. The effect of doubtful, as the price of sugar Is gov erned by the bounty system. Again, I don't believe the duty will injure manu- facturers using sugar to anything like the extent feared. Of course provision will be made for imposing a duty on manufactured articles from foreign coun- tries coming into competition with the home article and for allowing manufac- turers a drawback on articles which they export"
 The chancellor allowed f24o000 for the payment of these drawbacks.
 FaIr Play Is Needed.
 T have endeavored to reconcile the conflicting interests. Nothing must be done to protect the refiner to the disad- vantage of the British consumer. But, on the other hand fair play must be given to the British refiner as compared with his continental rival. The refiner of beet sugar must not be favored as against the refiner of cane sugar or vice versa I propose a duty on refined sugar of As 2d hundred weight. A half penny per pound would be As and Sd. so mar gin of Cd is left to cover the customs handling. etc. There is therefore no. reason why a tax of As 2d should increase the retail price more than half penny per pound.
 "The graduated scale of taxation will be as follows:
 'Refined sugar, which is polarized at 9S and upwards which represents two-thirds of the total imports. would pay the full tax This will diminish to minimum of 2s per hundred weight on raw sugar polar ized at 76. This scale is only tentative.
 ..Molasses, in which are included the