Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-04-24
The First England Has Had
for Four Years.
Estimated Reyenueof $773, $50, 000
and Surplus Of $4,000, 900.
That Will Be All Right, If Future Wars
Are Avoided.

tive and 1t was unusually so this year,
as the chancellor of the exchequer, Mr..
Richie had the pleasure of introduce
ing the first peace budget for four
years. The House was well filled and
there were many visitors in the gal
Ieries when the chancellor rose to make
his statement. Mr. Ritchies proposals
Included the following:
The abolition of the duty on grain.
The taxes on sugar and coal are I'M
changed.
Four pence 6 cents is taken off the
income tax.
The duty on tea, which the trade ex-
pected would be reduced, is not
changed.
The budget, which was introduced in
the House of Commons, today, shows
an estima ted expenditure for 10000 of
$719, 10000.
The chancellor of the exchequer fixed
the national debt charge at s135. 100000,
of which s31, 800, 900 is available for the
sinking fund.
The estimated revenue of the existing
basis of taxation is sra, $4,000. giving
an available surplus of $54,0sO,0O0
Mr.. Richie opened with the pleas
ing statement that whereas his pre-
decessors had to impose fresh taxation
it was his task to remit burdens. He
thought there was nothing in the mon
etary situation to create alarm. Money
had necessarily been very scarce and
very dear, as in addition to the govern
ment demand there had been made
many other evils on the money market.
Any further demand on account of the
Transvaal, however, would be wholly
for reproductive works and would have
the full guarantee of the British gov
eminent. Enumeratng the increases
and decreases of the past years trade,
hte chancellor expressed the opinion
that the chief lesson to be learned
therefrom was that capital and labor
should endeavor to come more closely
together so as to strengthen their pow
err of competing with foreign coun-
tries.
Proceeding, Mr.. Richie said the to-
tai expenditure of the state for the
past year from every source was 81 ,O05,-
$500 He estimated the cost of the
wars in South Africa and China of the
last four years at 81 ,OS5 ,O00,0 900 of which
$S4O.OO0.000 had been betrayed by the
revenue. The sum $747,00,00O was
charged to the capital account. The
latter would be reduced to 55O,OO0,0Oo
by the Transvaal repayment and the
Chinese indemnity. Including the war
debt the national Indebtedness now
reached the enormous total of $3,39l,-
745 900
The chancellor however saw no reason
for apprehension in the fall in consols.
Turning to the expenditure for 1904
taI thaf n
amount to s71977O.OOo and said he proposed
to fix the annual national debt charge at
s135. 900, 0OO of which $31. 900 is available
for the sinking fund. This amount would
rapidly increase as repayments were re-
ceived from the Transvaal until four or
five years hence it would reach s45Oo0,coo,
the largest amount, both absolutely anu
proportionately ever granted.
The chancellor viewed woth great con-
Germ the increase in the army expenditure
and hoped great reductions would be pos
sible soon On the other hand. the pos
session of a strong navy was not matter
of national pride but of national life or
death, and to preserve a strong navy ne
would grudge no cost. The British naval
preparations were no menace to any for
eign power SO long as other fleets grew,
the British fleet must grow.
In this connection the chancellor re-
ferred to the improved relations between
Great Britain and France
After a reference to the raids made on
all sides on the exchequer including the
demands for the payment of members of
the House of Commons and for old age
pensions, the chancellor estimated the
revenue for l9O5-0i on the existing basis
tyiy vi n l.
able surplus of s54 0sO,0 600 and proceeded,
saying that more than half the war tax
alton had fallen on the income taxpayer
who therefore, had the first claim for
consideration. He was not satisfied with
the present method of levying the tax and
thought committee of the House of Com
mons ought to be appointed to revise 1t.
In the meanwhile he proposed reduction
of four pence teight cents in the pound
sterling $. The balance of the surplus
would be given to the relief of indirect
taxation of the necessaries of life. He
could not afford to reduce the duties on
sugar or tea which would not be regarded
as necessary for life, so he proposed to re-
nit the grain duty from July l.
Mr.. Ritchie points out that the reduction
of the income tax involved a reduction OF
of the grain duty meant a reduction of
s about $l0.0O0.0O0, leaving him a small work
ing surplus of about 81. $50, 600.
The chancellor. who spoke for an hour
and so minutes, received approving cheers
and especially when he announced the re
mission of the grain duties.
Sir VIM. Vernon Harcourt U4iberaD. the
former chancellor of the exchequer. fol-
lowed.
Sir William said he thought it was
scandalously unjust that the well to
do classes should be relieved to such
an extent while the wage earners on
~ advantage was the remission of
$l0,00O,000 of indirect taxation. The
grain tax. he added, was an Infamous
one and he was glad therefore that i:
was repealed. The speaker vehemently
complained of the proposed expendi-
lures for South Africa, which he
claimed. ought to pay for the war The
colonies. he further asserted, ought to
contribute toward the support of the
navy. No sober-minded man could
justify the enormous expenditure of the