The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-04-15
HEAVY COST OF WAR
BRITAIN's TAXPAYERS MUST BEAR
THE BURDEN.
BUDGET STATEMENT MADE.
TAXEs ON GRAIN AND FoODsTUFF
NOW PROPOSED.

Hardly BE Pleasing to the British
Taxpayer-He Proposes to Increase
the Income Tax and to Impose a
Duty ON Grain-Peace VIII Bring
No Decrease in Expenditures.
London, April 1.-THE chancellor of
the exchequer, Sir Michael Hicks
Beach, to-day made the budget state
ment in the House of Commons. He
declared the past year had not been
exceptionally prosperous, but there
was nothing to depress the country.
There had been a heavy slump in the
receipts from tobacco, spirits and beer,
but there was a great increase in the
consumption of tea and cocoa. He
was in the exceptional position for a
chancellor of the exchequer holding
Office during a severe war, that for two
years past the revenue had exceeded
his anticipations, the last year by
f549,O00, when his total deficit, includ-
ing the war expenditure of f73, 1872, 900
for South Africa and China, was f52,-
$4,000.
Proceeding to deal with the receipts
of last year, in detail, Sir Michael
Hicks-Beach said the sugar tax was
most successful. 1t brought in e6,50O
000 against his estimate of 95, 100, 000
The export duty on coal produced e1,-
$4,000, which was also above the es-
innate, while the prophets of evil We're
so far from being justified that the ex-
ports were higher than in the case of
any year, except the record year of
1899. 1t would be difficult to convince
him that the tax should be repealed.
The death duties had produced Els
39S, 900. There had been a material de-
crease in the consumption of beer. He
had seen it set forth that the brewers
were covering the higher duty by de-
creasing the gravity of their beer.
Possibly their customers had not fully
appreciated the diluted article.
Though the death duties were a use
full life buoy to the chancellor of the
eXchequer, the real ship which bore
him safely through the stormy seas of
national finance was the income tax,
which, last year, yielded &34 100000, or
G1,000,000 above the estimate. This
tax.was heavy burden in some cases,
that the Instances were not quite 50
numerous as many people believed.
The account of the national debt was
not so satisfactory. 1t now stood at
e747, SO6 900, the funded debt showing
an increase of e5S 100000, chiefly due
to the consols loan of last spring.
Heavy Cost of Boer War.
The cost of the war for three years
was G165, 034, 600, but in addition to the
hope of repayment from the wealth of
the Transvaal, there was their share
in the Chinese indemnity, which was
very valuable asset and would probab
ly be devoted to a reduction of the war.
The Nationalist members ironically
cheered the announcement made'b by the
chancellor to the Transvaal.
After touching on various details, the
chancellor turned to the prospects of
the future. He estimated the eXpendi-
ture for the coming year at STA, $685.,
900. The revenue on the present basis
of taxation was G147, 7S5,000, leaving
a deficit of EGG, S24, 00O This would be
increased by f1S. 100000 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 f45, ZOO, 600
Heavy Expenses Yet to Come.
War was a costly thing to wage and
costly thing to terminate. After the
war was over there would be the great
expense of the relief and resettlement
of the two colonies and the restocking
of farms He hoped that, when dur
able peace was made, Parliament
would be generous and loan money
for restocking the farms, not only of
those who fought on the British side,
t,,,{ 1f
enemies and whom they now hoped
to make friends. and for railroad
and other enterprises, to serve to de-
velop the two states. 1t was his duty
not to take a rosy view of the case
but to provide for the worst. He had
hopes of a happy result from the con-
ference in South Africa, but he had put
them aside. Preparations for the con-
tinuance of the war were the best
guarantee of peace.
The chancellor proposed to suspend
the sinking fund, reducing the deficit
by G4,500,000 and to increase, by a
penny in the pounod, the income tax,
yielding e2,0O0000 increase. From July
there would be penny to two-pence
stamp duty on sight bills, including
dividend warrants and checks, yielding
G 500, O0Q.15
To Tax Grain, Flour and Meal.
After mentioning that ne did not
propose to interfere with beer, wine
tea and sugar, the chancellor said he
must select for indirect taxation an
article practically in universal con-
sumption, the taxation of which would
not unduly press any class. The ordi-
nary expenditure of the country, quite
apart from the war, was greatly in
creasing and in view OF the ever
growing expenditure for armies and
it desirable to frame some scheme of
taxation, under which, when peace re-
turns, there Would be no difficulty in
settling the countrys finance system
on a basis equitable alike to all the
taxpayers of the country. He there
fore proposed an import duty of three
pence per hundredweight on all grain,
with a correlative duty of five pence
per hundredweight on -four and meal
The total yield of this duty was esti-
mated at ST. $50, 600, bringing the total
estimate of the revenue from the new
taxation to e5150,00O. OF the balance
of the deficit the chancellor proposed
to borrow e32 600, 900 and to find the
rest by drafts on the exchequer. He
feared that the duty on grain would
arouse prejudices strong and deep, and
that the cry of taxing the food of the
people would once more be raised,
but he was convinced that
bv no other form of
indirect taxation could so much money
by any possibility be found, with So
little effect on the article on which II
was in1posed and with so little injury