New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-29
FREE TRADE FINANCE.
Mr.. AUSTEN ChambcrlainS Budget
Speeck-Mr. Balfour'S Ambitions.
London, April 20.

plain when they are asked 10 swallow their own
medicine tn increased doses From Mr.. Cob
den's .ine they have been trained 20 accept in
come taxation and duties on tea and tobacco as
the foundations Of fiscal policy; and since there
Is 2 considerable deficit TO be covered they can
not withhold their approval when Mr.. Austen
Chamberlain does what any free trade Chan
cellor Of the ExcheGuer would have done IN his
place. He puts another penny on incomes adds
rwopence 10 the tea duty. and materially in
creases the taxes on tobacco, cigarettes and
cigars. and Lord Goschen pays him this com
pliment: An honest budget Of the old fashioned
kind" And this tribute from a veteran is par
ticularly hearty since the sinking fund is not TO
he suspended and the general effect must be the
hardening OF consols. The Free Traders on the
government side cannot consistently vote against
g budget which either Sir Michael Hicks-Beach
or Mr.. Richie might have presented as a hum
drum detail Of traditional Cobdenite policy; and
the Liberals on the benches opposite cannot
make much Roadway against 1t. There may be
denuuciation OF an extravaSant Ministry which
cannot cut down national expenditures and is
forced 20 take a full shilling from incomes and
10 hit the working classes by making tea and to-
bacco dearer, but there cannot be destructive
criticism from the Opposition. 1t is a Free
Trade budget which enables the government 70
hang On to Office.
reasons Tor being satisfied with the situation.
They are enforcing their own theories indirectly
but most effectively. When a shilling on in
comes is required in times Of peace, and when
the working people are forced TO dilute their tea
and TO smoke inferior grades of tobacco there is
a practical demonstration OF the necessity for a
revision Of the fiscal system. The country is
having an overdose OF Free Trade finance. The
income tax. which Golden regarded as reserve
nent means Of forcing balance in the Treasury
accounts, and II is draining the resources OF
capital invested in trade. and it is taking the
blood out Of the most important class Of tax
payers-those having moderate means and earn
ing from f4O0 10 $1,000 year. This class is al
ready exhausted by continuous taxation OF
earning capacity and by the increase Of local
rates and Mr.. Austen Chamberlain's budget Will
tend TO enlarge and intensity the revolt against
Free Trade finance. Leeches were abandoned In
medical practice a long while ago. but the old
fashioned bleeding processes Of direct taxation
are retained with perverse conservatism. when
less exhausting and more scientific methods are
employed IN the United States. Germany, France
and other progressive countries. That is the
view Of the new school Of English Protectionists
which grounds its argument in favor OF fiscal
reform upon the necessity for having a larger
revenue from indirect taxation. Their reading
Of the budget IS thlS- w g cannot on
the earning capacity Of capital and and
bleeding to death people OF moderate means
The Protectionsts also take satisfaction in the
contrasts between their own leaders proposals
and the increased burdens heaped upon the
working people by the Free Trade budget. The
Chancellor OF the ExcheQuer has shown that n
valuable resource OF revenue was abandoned
when the registration duty on grain and -four
was repealed; and he has been compelled to
raise the duties on tobacco and tea The work
ing classes, who were not hurt by the registra-
1ion duty and would hardly have known that
they were taxed If Free Traders had not raised
hue and cry over il. are now heavily hit I'm
the increased cost Of what they consider necessi-
ties Of Ife-tea and tobacco. The great I'm
perialist. when he opened his campaign in Glas-
gov, promised to Offset small duties or i'm
ported food with reductions IN the taxation Of
tea and tobacco; and he made an urgent appeal
FOR a fiscal policy which would help TO unite
the empire and TO develop its resources. The
Free Trade budget increases the burdens of the
working people and singles out the tea indus
try Of Ceylon and India for attack. 1t follows
the familiar lines OF insular finance OF the Man
chester school. Is the consumption OF beer and
spirits declining in consequence OF hard times
or unfavorable weather? Yes; then do not think
OF squeezing anything more out OF the brewers
and distillers: and drop the idea OF increasing
the license duties iA payment for what may
properly be considered the leased privileges Of
state monopoly. Is the consumption OF tea and
tobacco increasing? Very well; clap add.
tional taxation: and IL large margin remains
uncovered IN the deficit. put another penny on
the income taxpayer. He can always be reached.
and ne cannot help himself. AS for the en-
pire, 81 is a geographical expression and i'm
perial federation is a pretty rhetorical. phrase
which comes IN nicely when sleepy, wine
bibbing audience is TO be aroused at the end Of
hating after dinner speech.
Those who have learned ito think imperlally'
ere pleased with a budget Of this kind. because
they are convinced that their leader has ad
vised Il as the most effective method Of con-
vincing the country that * is paying too heavily
FOR its loyalty to Free Trade. Punch" depicts
John Bull as dining eKtravasanlly at the EN-
pire Hotel" and saying 20 his Prime Minister.
when the Chancellor OF the Exchequer the
waiter has brought in the reckoning: You're
a charming companion. my dear Arthur; but
really don't think I can let you order the din
ner again" In reality it is the same menu
served in the oldtirne Free Trade house. and the
waiter Whatever he may believe in his heart,
wears the Cobdenite uniform and Manchester
buttons. The Ninisterialists, moreover, relieved
by Mr.. Austen Chamberlain's adroitness IN fol-
lowing the advice OF Treasury experts. and IN
avoiding controversial issues at an inconvenient
period for the renewal OF fiscal polemics.
confident that Mr.. Bull cannot help himself.
but Nin be compelled to allow Mr. Balfour to
order the dinner again. with the same waiter in
attendance behind the chairs. The assumption
may be fallacious when there is a compromise
licensing bii before tho Commons and when the
Irish members are scheming night and day with
the Radicals to bring about the downfall OF the
hEy al