The Saint Paul globe., 1904-04-20
BRITISH TAXES
VILE INCREASE
Chancellor of Exchequer Would
Ralse the Rates on In
comes and Tea.

LONDON, April 19.-The widespread
interest in presentation of the budget
today was evidenced by the crowded
state or the house of commons. The
chancellor of the eXchequer, Austen
Chamberlain, made his statement Jo-
seph Chamberlain was present to hear
his son.
austen Chamberlain opened by ex-
patlatlng on the difficulties of his posi-
uon' the great wave of prosperity which
Great Britain has. enjoyed so long hav-
ing apparently spent it's force and Civ
en- place to a less prosperous cycle.
The industries of Great Britain, espe-
claliy the cotton industry, were de-
pressed, and foreign competition was
keener than ever. The markets in which
Great Britain has heretofore been su-
preme were increasingly threatened.
The commercial depression in the
United Kingdom was aggravated by the
conditions in South Africa. The reve-
nue. Tor 19O3-l904 was 1850, 600 below
the estlmate, while the expenditure ex-
ceeded the estimate by $15, 5,035, 900. The
fepeaI or the duty on wheat had been
more costly than anticipated, without
dlIoruihg the consumer the relief ex-
pected. The net total deficit for the
hnanclaI year was $27, 7,075, 900.
MI. Chamberlain proposed to realize
from unclaimed government stock $5,-
VOO,OOO toward the deficiency.
The chancellor refused to suspend
the sinking fund, considering it bad
pohcy: He estimated the expenditures
OF 19O4-19O5 at $714,40O0O0, and the
revenue, on the basis of the existing
taxation, at $695,39b, 900, leaving a
| deficit of $19, 100000 to be made up.
Increase of Taxes.
He proposed, therefore, to increase
the income taX8 by 2 cents. He also
proposed an additional tax of 4 cents
per pound on tea, and a readjuStment
OF the tobacco duties, imposing a duty
or 81 cents on tobacco stripped before
imported, also an additional duty of 12
cents on cigars, and an additional 25
cents on foreign cigarettes.
Mr.. Chamberlain proposed also to
raise the moisture. limit to 80 per cent,
and introduce three or four different
dates in the drawbacks, which he hoped
would Increase Great Britain's tobacco
export trade, especially to the colonies.
The net gain by these tobacco changes
was estimated at $2,750,000. The in
crease in the tea duty will amount to
$1O,OOO,OOO, bringing the total estimated
revenue up to $718,050,000, or a surplus
of So, $50, 900.
Mr. Chamberlain's announcements of
the increase in the income tax, which
would give $10,OOO,O00 additional rev.
enue, and in the tea duty, were both
received with loud protests.
On the motion to increase the tea
tax, the Liberal leader, Sir Henry
Campbell Bannerman, congratulated the
chancellor of the exchequer on the lu-
cidity of his speech. He said he had
discharged a difficult task in a manner
to command general admiration, not
withstanding the fact that the chancel-
lor found himself IN a somewhat in
cOngruous position, between the posi-
tion he held and his fiscal aspirations,
which he did not conceal. The Liberal
leader referred to the greatly increased
expenditures of recent years and said
it was the first duty of the house of
commons to check this extravaganza
Mr.. Ritchie, the former chancellor of
the eXchequer, also congratulated Mr..
Chamberlain but he defended his estt-
mates of last year, which, he said, were
based on expected prosperity, the fail
ure of which could not be foreseen.
The house, after discussion, adopted
the increased tea and tobacco duties by
majorities of 72 and "a, respectively.