New-York tribune., 1901-03-18
ENGLISH FINANCE.
prpGET GAMBLING MADE EASY-A
WIDER AREA OF TAXATION REoUI-
SITE-WEST INDIAN STEAM
SHIP SUBSIDIES.
SHIP SUBSIDIES.
London, February B.

rTffe
!. revenue were needed for the war chest: the
,r.sncellor of the EXckeouer was not ? financier
:. original genius, but only capable Of working
~, simple sums OF arithmetic on a slate; conse-
,,ently the taxes on whiskey. tobacco. wine and
"a IS weI as incomes, would be raised. Week
.stsr week there have been enormous clearances
.oro bond Of spirits, wine, tobacco and tea in
,,,ioiration Of largely increased taxation OF
.,sse articles OF general consumption. Human
.rure is the same on either side OF the Atlantic.
-bs bonded warehouse system. which was es-
,sbished for the convenience and relief of inl-
,or,ers and traders, has been converted here. as
= America. into a screen for speculation or a
,.-pe scale at the ex3ense Of the treasury.
whenever taxes are 10 be increased in England
Goods are taken out Of bond and the duties and
er,se dues are paid upon them at the lower
-,,es and the spectators pocket the unearned
,rrenent which was designed for the depleted
rusr chest There is a possibility that the Chan
csror by making the taxes retroactive may out
,oanoeuvre the budget gamblers, but they do not
sppear 10 be alarmed by the menace.
There are without doubt in the Chancellor's
r,reonboles several alternative schemes for rails
s,r additional revenues. As soon as one budget
e brought in specialists st the treasury begin
nreparations for the next one: and from month
"a month they watch the effects Of changes in
tbe schedules and form conclusions respecting
he expediency Of further notifications. The
chief Inspector Of Excise has made a close study
!, .be sources of direct and indirect taxation in
rrenaration for the next budget, and SOM
,nsrkable surprises may be in reserve for tax
nsyers There would be public qualification II
he duties on tobacco spirits. wine and tea were
lsft UNCHANGED and the spectators We're 70 have
+heir trouble for their pains with heavy tolls
n nav in interest 10 money lenders who were
enabling them TO carry enormous stocks in eX-
cess Of the requirements Of the market. The
budget however. cannot be rearranged for the
sake Of enforcing n moral against gamblers. Its
revision must be worked out on broad lines il
the Chancellor has the courage 10 take aG-
vantage Of a supreme opportunity for Iecasting
the fiscal system and restoring the normal rela-
fons between direct and indirect taxation Sir
Michael Hicks-Beach neglected TO do this last
year and he has been reproached for his lack
of skill and Of sagacity in financing a costly
war The gamblers are sPeculating upon the
continuance o. feeble expedients and burden
some charges upon limited class Of taxpayers
Unless all signs are misleading. they understand
the Chancellor ana are sagacious in their calcu-
lstions and forecasts.
From 1910 10 1850 the English fiscal policy
involved the collection Of ive-sevenths Of the
national revenues from indirect taxes, customs
and excise, with the bulk Of the remainder sup
Piled by the income and property tax. During
the last twenty years apart from the South
African war there has been an increase OF 30
per cent in national expenditures. and the bulk
OF the additional burden has been thrown upon
direct taxation. The death duties have been
tFebled and the income tax has been heavily
increased and there has been a large access OF
stamp duties. The relations and proportions be-
s~zs Na--a IaaFs
transformed, and there has been exhaustion of
what was once a great financial reserve. When
the revenues from customs and excise were
propped UP and eked out by the income tax
there was an available resource for the emer-
gency ot war It was only necessary 10 put an
extra penny on the income tax TO meet the
special requirements CT campaign. and this
could be taken of when the emergency passed
II is no longer practicable TO do this, since the
reserve for extraordinary occasions has been
converted into an ordinary source Of revenue
under conditions Of peace. The iLcone tax had
stood at eight pence year after year when the
South African war came on. and then il ran up
10 a shilling and taxpayers VIII be fortunate
II they get of another year with anything less
than an additional fourpence OF sixpence. Di-
rect taxation OF realized wealth in one form or
another has been extended in peace and in war
until II bears heavily upon the limited class
with fixed incomes. and operates as a burden
upon capital becoming thereby detrimental 70
the interests OF working people.
stztisticians who have studied the percent
ages OF the revenue returns during the last
twenty years have not failed 10 observe the
shifting u the centre OF gravity OF taxation in
consequence OF the continuous ircrease Of direct
charges without any corresponding addition TO
Indirect charges The trebling OF The death
duties and the levying OF exorbitant income
taxes in time of peace have not been accom-
panied by any proportionate increase in indirect
taxation and in war time there has been added
weight 10 the exactions upon people OF moderate
means and the rich and luxurious classes Ex-
perts who have been content with sounding
warning against the risks and dangers Of de-
pending continuously upon direct taxation Tor
carrying extraordinary burdens are now de-
claiming against the narrow range OF indirect
taxation and oontending that the area should
be wieened. Tobacco. wines, spirits and tea are
now the chargeable commodities af1ected oy tue
customs and excise. Equilibrium would oe re-
stored by bringing sugar, wheat and few lines
ot manufactured goods within the reach OF in
direct taxation. These would be revenue duties
sne their enforcement would involve readjust-
nent Of burdens which now fall with over
Ehelnning force upon a restricted class.
II M. Chamberlain were Cnancellof OF Inv
Ezehequer radical changes in the fiscal system
might be expected. He would have the courage
10 admit that the unceasing strain OF ornaments
In time OF peace has exhausted the reserves of
direct taxation for the emergency Of war. ana
ne would be quick 10 discern the advantage OF
an enlarged tariff in facilitating the establish
ment OF an imperial zollverein and the working
out OF the complex problem Of imperial fedora
uon. He woule not have dreaded the reproache
and sarcasms OF Sir William Harcourt, and
would only have laughed At the renonstrances