New-York tribune., 1906-05-01
MIR. ASQUITH'S BUDGET.
SURPLUS IN LAST YEAR.
Graduated Income Tar and Reduc-
tion of Duties Proposed.

| London. April 30.-The House of Commons
was filled to-day when the Chancellor Of the
hiSchequer rose TO introduce the first budget OF
inc new Liberal administration. Mr.. Asquith
began by reviewing the last financial year. point
ing out the cheering fact that the revenue was
larger and that the expenditure was smaller
'han the estimates, and that hence the country
was in the happy position of having realized a
surplus of s17,s5s,oOo. The steadily growing
prosperity Of the country In 1905 had continued
during the first quarter of 1906.
Mr.: Asquith called attention TO the progress
sive diminution of the yield OF the duties on al
coholic liquors. The change. he added. had ap-
parently affected all classes of society and
would be hailed with pleasure by social reform
ers, but he doubted whether II was safe TO base
| thereon any wide generalization as TO a vast
change in social habits.
Mr.. Asquith estimated the expenditure for
1sos-'o7 at sos 100000 and the revenue at s724-
100000. There would be, therefore an estimated
surplus OF s15.370.oO0 Deducting s2,OO0.oOo for
contingencies, they would have disposabe bal
ance of nearly s13350.0o0.
The Chancellor then surveyed the general
financial position, referring especially to the
growth Of the national Indebtedness, now the
huge total of s3,s44e50,00o, and TO the expendi-
ture. dwelling the gigantic, excessive sums
devoted TO the navy and army. He said he hoped
ana DelleNei from WNGI ne AuCW Va IAAc AAAS~@-
tions Of his colleagues that when he introduced
the budget for 1907 he would be able. without
any material weakening of the efficiency of the
national services, to effect substantial saving.
II was the first and paramount duty OF the gov
ernment 20 return TO thrifty, economic methods
OF administration, and second only thereto was
the question Of adequate provision for the re-
duction of the national debt, which was now
practically at the figure as in 1870 He IN
tended at the earliest possible moment to discon-
tinue the system Of carrying out naval and mil
itary. works on borrowed money.
The floating debt now stood at the serious to-
tai of S27S, 10000, and it was a source OF the
greatest disquietude because it serious ham,
pered the country's borrowing powers should a
sudden emergency arise, and because it meant
that the government competing for ana
locking up funds which otherwise would be
available for commercial enterprise In addi-
ton TO the ordinary provision he proposed 10
take S2.5oO0o0 from the estimated surplus and
25o0OOO OF the Chinese indemnity for the re-
ductIon of the debt. In 19O6-'Ol the sum OK
600 would be taken from the surplus roF
needy school districts, and revision OF the par
eel post rates. especially beneficial 20 the farm
ers would absorb another s520,ooO. leaving the
final estimated surplus at about sloocouo.
He did not propose 70 reduce the income tax.
practicability OF a graduated tax, and strong.
select committee would be appointed TO report
on the subject
Mr.. Asquith then announced that the balance
OF the surplus would be applied 20 a complete
repeal Of the coal duty from November i, absorb
ing S5,OOOoOO a reduction OF two cents in the
tea duty from July l. absorbing another S4.sOo.-
600 and taking five cents off stripped tobacco
making the duty thereon as cents. This. he said,
would be retrospective from March 81. and would
cause no appreciable loss of revenue.
The former Premier. Mr.. Balfour, congrat-
ulated Mr. Asquith on the lucidity OF his budget
statement. following the compliment with criti-
cisms OF some OF the features OF the budget Mr..
Balfour said he hoped that in the desire FOR
economy national interests would not be sacr1-
hced While wishing the Chancellor Of the Elk
chequer success in his endeavors 70 reduce the
expenditures, he pointed out that social reforms
could not be obtained without an increase of ex-
pendture.
other speakers congratulated or criticised the
Chancellor OF the Exchequer. according TO their
party bias