Omaha daily bee., 1902-04-15
INCOME TAX STEMS THE TIDE
ship, Says Chancellor of E~xchequer,
which Bore Through Finan-
ciaI storm.

LONDON, April 14.-The chancellor OF
the exchequer, Sir Michael H~icks-Beach,
in the House Of Common this afternoon
made the budget statement. He declared
the past year had not been exceptionally
prosperous, but there was nothing to de-
press The country. Despite the fact that
thousands Of workmen had been removed
from productive labor by the war, the rev.
enue figures showed no diminution Of busi-
ness at home. while there was a s~atisfac-
tory increase OF foreign trade, and there
was no reason for thinking that there had
been any falling of Of the consuming power
Of the people.
He, was in the exceptional position for a
Nohancellorso OF thA lexchequer, holding office
during a severe war that for two years
past the revenue had exceeded his anticl-
p~ations, the last. year by G543,00O, when
his total deficit, including the war expendi-
lures of e7s, 49,, 900 for South Africa and
China, was e52.544,OOo.
Sugar Tax Successful.
Proceeding to deal with the receipts Of
last year In detail, Sir Michael Hicks
Beach said the sugar tax was most success
full. 1t brought in e6,500 900, against his
estimate Of 60, 100, 900. The export duty on
coal produced Ell, S14 900, which was also
above the estimate, while the prophets Of
evil were SO IaT ITOm DelnB Jusllneu INA
the exports 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that the tax should be repealed.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 e1s,Sss,-
900. There had been a material decrease
in the consumption of beer.
Though the death duties were a useful
life buoy to the chancellor Of the ex-
chequer, the real ship which bore him
safely through the stormy seas OF ma
tional finance, was the income tax, which
last year yielded G34,s $780, 900. or e1,0O0,0 900
above the estimate.
The account Of the national debt was not
SO satisfactory. 1t now stood at e747,-
SOC, the funded debt showing an increase
Of R5S, 000, 900, chiefly due to the consols
loan Of last spring.
Enormous Cost of n War.
The cost OF the war for three years was
e165, O34, 900, in addition to the hope of
repayment from the wealth OF the Trans
vaal there was their share in the Chinese
indemnity, which was a very valuable asset
and probably would be devoted to a reduc-
ton Of the war debt. The nationalist mem
bers ironically eheered 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 expenditure for
the coming year at. Ella, 500, 900. The rev.
enue on the present basis Of taxation was
el47,7 s5, 900, leaving a deficit OF e26,S24,-
900. This would be increased by els, $780,
900 by gratuities to the troops and bringing
the soldiers home, the maintenance Of the
South African eonstabulary and the cost
Of the international sugar convention, ETC.,
making a gross deficit Of e45,oo 900.
Makes and Leaves Expense.
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 the resettlement Of the
two colonies and the restocking of farms.
He hoped that when durable peace vas
made Parliament would be generous and
loan money for restocking the farms. not
only OF those who fought on the British
side, but those who had been honest enc
mics and whom they now hoped to make
friends, and for railroad and other enter
prises to serve and to develop the two
statess II 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 conference in South Africa, but
he had put them aside. Preparations for
! the continuance OF the war were the best
, guarantee OF peace
The chancellor proposed to suspend the
sinking fund. reducing the dehcit by Ca
! 800 900, and to increase by a penny on the
; pound the income tax, yielding e2,oOO, 900
J increase. From July I there would be q
penny to 2-pence stamp duty on sight bills,
including dividend warrants and checks.
2 yielding e5eO.00O.
Z He feared that the duty on grain would
! arouse the prejudiees strong and deep and
! that the cry OF taxing the food Of the psO-
pie would once more be raised, but he was
convinced that by no other form Of lndireci
taxation could 80 much money by any pos
sibility be found, with so little effect on
the article on which It was imposed and
! so little injury to the trade and commercs
: Of the country. The chancellor OF the ex-
cheQuer was loudly eheered by the oecu-
pants Of the ministerial benches az he con-
leludsd.