The daily morning journal and courier., 1902-04-15

safely through the stormy seas of na- tional finance was the Income tax,
 which last year yielded G34,S00000 or
 6 100000 above the estimate. This fact
 led him to hope that thought the tax
 was heavy burden, in some cases,
 that the instances were not quite so
 numerous as many people believed.
 The account of the national debt was
 not so satisfactory. It now stood at
 G747, ,806000, the funded debt showing
 an increase of e5s,O00ooO, chiefly due
 to the consols loan of last spring The
 cost of the war for three years was
 e165, ,034000; but, in addition to the
 hope of repayment from the wealth of
 the Transvaal there was their share in
 the Chinese indemnity, which was a
 very valuable asset. and would proba-
 bly, be devoted to reduction of the
 war debt.
 The Nationalist members ironically
 cheered the reference made by the
 chancellor to the Transvaal.
 After touching on various details, the chancellor turned to the prospects of the future. He estimated the expendit- ure for the coming year at G174609, ,O00 The revenue on the present basis of taxation was G147, 7S9, GOO, leaving a de- felt of G26,S240 000 This would be in- creased by G1S,5O0,000 by gratuities to the troops and bringing the soldiers home, the maintenance of the South African constabulary and the cost of the international sugar convention etc, making a gross deficit of upwards of G45. 900, 900.
 War was a costly thing to wage, and a costly thing to terminate After the war was over there would be the great expense of the relief and reset tlement of the two colonies. and the re- storing of farms. He hoped that, when durable peace was made, parliament would be generous and loan money for restocking the farms, not only of those who fought on the British side but. of those who had been honest enemies and whom they now hoped to make friends, and for railroad and other en- terprises, to serve to develop the two states. It was his duty not to take a rosy view of the case; but, to pro- vide for the worst. He had hopes of happy result from the conference in South Africa but, he had put them aside. Preparations for the continu- ance of the war would be the best guarantee of peace. The chancellor to suspend the sinking fund, reducing the deficit by 94,30O,00O and 5o increase, by a penny in the pound, the income tax, yielding e2,OoO,OoO in- crease. From July 1 there would be a penny to two penny stamp duty on sight bills, including dividend warrants and checks yielding G500,000.
 After mentioning that he did not pro- pose to interfere with beer, wine, tea and sugar, the chancellor said he must select for indirect taxation an article in universal consumption, he taxation of which would not unduly press any class, The ordinary expen- lture of the country, quite apart from he war was greatly increasing, and n view of the ever growing expendit- Ire for armies and navies in other countries he thought it desirable to rame some scheme of taxation under | which, when peace returns, there would | ,e no difficulty in settling the country's l inance system on basis equitable like to all the taxpayers of the coun- ry He was of the opinion, that the | epeal by the late Mir Lowe of the inn | 'ort duty on wheat had not realized | he expectations formed at the time. | The effect of duty of three penny per lundredweight on wheat would mean F,,oa increase in the price of the loaf, and he competition of the bakers was so ,een that anyone trying to raise the rice of bread on such ground would probably find such action not to his ad- 'antage. The chancellor of the ex- hequer denied that the registration of 1 uties on grain and flour violated the 1 rinCiples of free trade or would in- l reaSe the cost of food. He thought l he duties had been recklessly aban- l oned and declared their remission did | ot reduce the price of food. He, ! therefore, proposed an import duty of l hree pennies per hundredweight on all l rain, with a correlative duty of i've | ennies per hundredweight on flour nd meal. The total yield of this duty
 as estimated at e2650,0 000 bringing the Dtal estimate of the revenue from the CIV taxation to se5, 15000O Of the bal nee of the deficit the chancellor pro- osed to borrow e32 900, 900 and to find ne rest by drafts on the exchequer. Ie feared that the duty on grain would rouse prejudices strong and deep and nat the cry of taxing the food of the eople would once more be raised; but e was convinced that by no other 'rm of indirect taxation could so luch money by any possibility be