The Montgomery advertiser., 1902-04-15

spirits and tobacco was due to the Iore- stallment of the duty during the previous year
 He was in the exceptional position for a Chancellor of the Exchequer holding once during a severe war. that for two years past the revenue had exceeded his anticipations, the last year by E5S,0oc, when his total deficit. including the war expenditures of E73,192,0o0 for South Africa. was E52.544,00O.
 Proceeding to deal with the receipts Of last year in detail. Sir Michael HICKS Beach said the sugar tax was most sue cessful. It brought in E6.500,000 against his estimate of 95,5oo.oo0. The export duty on coal produced f1.SlIooo. which was also above the estimate. while the prophets of evil were so far from being justified that the exports were higher than in the case of any year except the record year of 1899. It would be diff f1cult to convince him that the tax should be repealed.
 Duties on Wine.
 Passing to the wine duties, which it had been suggested to him should be increased, the chancellor said the TO- ceipts from wine had been diminished by E3s,O ,O00 He thought 1t absolutly tmpos- sible to obtain more revenue from that source. The tobacco receipts had fallen of. Tobacco was not growing trade and, therefore. the revenue was not in- creasing. He expects better yield. however, this year. as he would not again have to cope with a forestallment Of duty.
 The death dues had produced fls.s9s.- 0o0 There had been material decrease in the consumption of beer. He had seen it set forth that the brewers were cover ing the higher duties by decreasing the gravity of their beer. Possibly their customers had not fully appreciated the diluted article. Though the death duties were a useful life, buoy to the Chan cellor of the Excheauer. the real ship which bore him safely through the stormy seas of national finance was the income tax. which last year yielded ES4'- soo.ooo or s1.0oo,ooo above the estimate.
 The account of the national debt was not so satisfactory. It now stood at s747. sos. GOO. the funded debt showing an increase of s5s.oooooo. chiefly due to the consols loan of last spring. The cost of the war for three years was E165'o34o 900, but in addition to the hope of repayment from the wealth of the Transvaal, there was their share in the China indemnity which was a very valuable asset ana would probably he devoted to reduc- ton of the war debt
 The nationalist members ironically cheered the reference made by the cham cellor to the Transvaal.
 Irony of Nationalists.
 After touching of various details. the Chancellor turned to the prospects of the future. He estimated the expenditures for the coming year at g174,6o9.0oO The revenue on the present basis of taxation was sI7, ,7s5,0 900. leaving a deficit of E26,- S24.00o This would be increase Eis.- 5oo,0oo by gratuities to the troops and bringing the soldiers home. the mainten- ance of the South African constabulary and the cost of the international sugar convention, etc., making a gross dehcit of upward of E45. .oOooo0.
 War was a costly thing to wage. and a costly thing to terminate. After the war was over, there would be the great ex- pcnse of relief and the resettlement of the two colonies and the restocking 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 fer railroad and other enterprises. to serve to de- velop the two States He had hopes of a happy result from the conference in South Africa, but he had put them aside. Prep arations for the continuance of the war were the best guarantee of peace.
 The Chancellor proposed to suspend the sinking fund. reducing the deficit by 4i4.- 3OO, 900, and to increase. by a penny in the pound, tho income tax, yielding 600 increase. From July 1. there would be a penny to two pence stamp duty on sight bills. including dividend warrants and checks. yielding s5Oo.oo0
 Tariff on Wheat.
 tLat ha dtA nf pose to interfere with beer, wine. tea and sugar. the Chancellor said he was of the opinion that the repeal by the late MT. Lowe of the import duty on wheat had not realized the expectations formed at the time The effect of a duty of 8 pence per hundredweight on wheat would mean but a very small fraction Of farthing increase in the price of the loaf. and the competition of the bakers was so keen that any one trying to raise the price of bread on such a ground would nrobably find such action not to his ad- vantage.
 The Chancellor of the EXchequer de- nied that the registration of duties on grain and flour violated the principles or free trade or would increase the cost of food. He thought the duties had been recklessly abandoned and declared their remission did not reduce the price of food. He, therefore, proposed an import duty of 8 pence per hundredweight on all grain. with a correRtive duty of pence per hundredweight on flour and meal The total yield of this duty was estimated at e2650.0o0. bringing the total estimate of the revenue from the new taxation to G515o,000 Of the balance of the deficit. the Chancellor proposed to borrow &32,- 900. 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 by no other form of indirect taxation could so much money by any possibility be found. with so little imposed and with so little injury to the trade and commerce of the country. The | Chancellor of the Exchequer was loudly l cherred by the occupants of the minis l terial benches as he concluded.
 Harcourt Makes Reply.
 Sir William Vernon Harcourt QAberaD | was the next speaker. He corrohorated | the view expressed by the Chancellor of the Exchequer that the duty on wheat would meet with strong objection This taxation of tho peoples food. he said. l would bring home to the people the les | son of the war Wheat was a thing of the first necessity, and he was opposed | to a return to the old fallacies of protec- | tion This passion for expansion of ter | ritory and annexation of independent | countries involved ruinous expenditure, | which he believed would have to be de- | frayed exclusively by the British tax
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