New-York tribune., 1901-04-20
THE BRITISH DEBT.

The most sensational feature Of Sir Michael
Hicks Beach's budget is the proposal to cover
the deficit by borrowing S300O00,000 on consols.
That means an increase by that amount Of the
permanent funded debt. To increase the public
debt is a deplorable thing. But. as we said
yesterday, such an increase will not make Great
Britain as badly off as she has BEEN or as other
nations are Her present debt is. in round num-
bers. So 196. 100000. This new loan will raise it
TO So 1876 OO0, 900. That is a formidable sum. But
France has debt of more than S6,000.O00,0OO,
and Russia one of S351500000O; and Italy's, Of
So. SIS. 600 900, is proportionately more burden
some than Great Rritain's. Moreover, In 1916,
when she was small and poor compared with
her present estate, Great Britain had debt OF
more than 81 500. 100000. She reduced it rapidly,
paying off more than S500000000 before the
Crimean War That war caused an Increase of
more than $15000O.000. Since then, until the
present war. there was pretty steady reduc-
ton amounting to nearly 81 0O0OO0000 the
reduction in the ten years 1889 to 1899 ranging
from 500 100000 to $44500OO0 year.
A nation that pay off its Indebtedness at
such a rate, and that, moreover. can borrow
money at par for less than 3 per cent, is not
exactly in a parlous financial condition. The
present increase of Indebtedness will scarcely
put the debt back TO where it was in 1885, and
bankrupt Or even the least bit embarrassed We
are fond of contrasting our small and diminish
ing national debt with the big debts of other
lands. Our ST. 400 100000 is small by the side
of Great Britain's So, 496 100000 Nevertheless.
it is still a considerable debt; and it has not
been uniformly decreasing, either. 1t is the
British boast that practically all the British debt
is chargeable to foreign war, and certainly the
only increases of ii in the last two-thrds of
century were thus caused. But in time Of
profound peace our debt was increased, from
1898 TO 1897, by more than S271 900. 600, or
nearly as much as Great Britain's has been
increased by a tedious war al the further end of
another continent.
The amount of the British revenue is also
worthy of attention The present revenue is a
little more than S65O0O00O0 In the coming
year Sir Michael Hicks Beach expects to make it
no less than SOIL ,OO0. 900 by means of increased
income tax, new duties on sugar. molasses and
glucose and an export duty on coal The fact
is that British revenues in the last twenty years
have increased more slowly than the wealth and
the needs of the nation Thus in 1SS1-'S2 they
were $500 100000 and by 1S93-'94 had risen to
only 1893, 100000. Since the latter date there
has been considerable increase on account of
needed naval expansion, and last year of the
Boer war But in 1898 99, the year before the
war; the revenues were only S4795OO,OO0. an
increase of S11O5OO0O0 in seventeen years Our
own revenues, may observe, In 1881 S2 We're
$500 100000. or almost the same as Great Brit
aims; and In 1S97-'9S they had risen TO over
S494.OOO,000. 1t is an impressive fact, indicat-
ing the growth OF British wealth. that in the last
twelve years the aggregate OF taxable incomes
has increased by more than 5000 900 0OO the
tax upon which at the rate proposed in
the budget will hp loss
year. Last year the income tax on incomes
above $500 year-all below that are exempt
from taxation-was II pence the pound or )
per cent, and 1t produced S132 100000. tie
largest income tax revenue ever had down to
date For the coming year IL will be IA pence
the pound, or 5.S3 per cent and will the
Chancellor estimates produce revenue OF