Los Angeles herald., 1908-05-08
DUTY ON SUGAR
CUT BY ENGLAND
NEW BUDGET REDUCTION IS
OVER TWO-THIRDS
BIG CUT WILL BECOME EFFECT.
I'VE MAY 18
Much Interest Aroused in Govern
ment's Scheme for Old Age Pen-
sions-Premier Asquith An
nounces Big Surplus
BY Associated Press.

| BY Associated Press
| LONDON, May 7.-The new budget
reduces the duty on sugar from As I'd
| to Is 10d per hundred. The reduction
| will become effective May IS on raw
and refined sugar and on July l on
articles manufactured with sugar.
The budget for the first time in
many years was presented to the house
| of commons this spring by the pre-
mier. Mr.. Asquith, instead of by the
chancellor of the exchequer.
No budget Of recent years has been
awaited with as much interest as
this one. Everybody was keen to
learn of the governments, scheme for
old age pensions. The house conse-
quently was packed and its galleries
were Overf1oWing with visitors.
Mr.. Asquith after commenting briefly
on the present slackening of trade
throughout the world following the
boom of 1907, announced that Great
Britain's surplus of 1907-0S amounted
to $23,630,000, which, he said would be
largely applied to the reduction of the
national debt. The national debt, the
premier said, had been reduced by ap-
proximately $90,000000 during the past
year. A further reduction of about
SIS, 100000 will be effected during the
current year and Great Britain's debt
would stand at the same figure as
twenty years ago.
Pays Off Large Debt
Some other countries, Mr.. Asquitb
said, which were supposed to enjoy a
happier fiscal system than Great Brit
ain were obliged to borrow yearly to
make both ends meet 1t was not an
unhappy reflection on British condi-
tions that in three years the country
had been enabled to pay off between
100000 and $250,000.000 of it's debt.
Mr.. Asquith estimated the total eX-
penditure for 19OS-O9 at $764,345,OO0
and the revenue on the existing basis
of taxation at $7SS,S50 900.
Coming to the main feature-the
matter of old age pensions-Mr. AS
quith said it had been decided to rule
out all contributory schemes and pro-
vide the pensions from the. national
treasury. In order that lunatics, GRIM
inals and persons now being relieved
should be ineligible under the new
system, it had been decided to start
with pension of $1.25 a week to per-
sons over 20 years of age in possession
of income under $3.50 a year.
The premier estimated the pension
ers will not exceed 100000 and the
cost of the scheme would be sSO,O00,O00
year. 1t will come into force jan
uary 1, 1909.
Acceptable, If sociaIistic
Stringent conditions will be laid
down for forfeiture and suspension,
and if this was Socialism. the premier
declared. it was Socialism of a kind
that both parties must accept.
AS the scheme will not go into eff
feet until January 1 the cost for the
current fiscal year will be only $6,000,-
900, leaving a balance of over $1S,000,-
900 out of the estimated surplus of
$24,505, 900.
The premier said he purposed to
reduce the duty on sugar from As I'd
to is 10 per hundredweight, with a
resultant loss in revenue of $17,000,000.
This with the old age pensions prac-
tically exhausts Mr.. Asquith's esti-
mated surplus.
Contrary to expectations Premier
Asquith had no new taxes to propose.