Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-05-08
A BIC CUT
In British National Debt Is
Announced by Premier.
Further Reduction Is Contem.
plated odd Age Pensions.
Duty on Sugar to Be Reduced''.Ho
New Taxes Proposed.

London. May THE budget for the
first tine in many years was present.
ed TO the House OF Commons today by
the premier. Mr. Asquith instead of
hv the chancellor of the eXchequer, for
the reason that Mr.. Asquith. in his
canacity of chancellor of the eXche-
quer, had prepared the budget and so
could explain it to Parliament. NO
budget of recent years has been await
ed with as much interest as this one
Mr. Asquith, after commenting On
the present SlackeninG OF trade
throughout the world following the
boom year of 1907, announced that
Great Britain's realized surplus Tor
the wear 1901-S amounted to $2363O, 900,
| which, he said. would be largely ap-
piled to the reduction of the national
debt.
The premier said the national debt
had been reduced by approximately
$4,000. 900 during the last year.
further reduction of about S1o,0eO.OOO
would be effected during the current
year and Great Britain's debt would
then stand at the same figure as ~
years ago, in spite of the great cost OF
the South African war. In three years
the country had paid off between $780,
100000 and $3.50, 10000 of its debt. Mr..
Asuuth estimated the total eXpendi-
lures for 19OS-9 at 1854 345, 900 and the
revenue at $7SS, $4,000.
| Coming to the main feature of the
budgct-the matter of old age pensions
Mr. AsIuith said it had been decided
to rule out all contributory schemes
| and provide the pensions from the ma
| tonal treasury. A universal scheme of
| pensions was outside the range of
| practical politics. In order that luna
| tics. criminals and persons now re-
| ce;vng poor law relief should be inel
| aible under the proposed system, it
lad been decided to start with a PEN
| sicn Of $1.25 a week to persons over 20
! years of age in possession of incomes
undec $3.50 year. The premier esti-
mated that the pensioners will not eX-
| coed 5000 and that the cost Of the
scheme would be $40, 600 900 a year. 1t
! will come into force Jan. 1, 1909.
| AS the scheme will not go into effect
| until Jan. 1. the cost for the current
fiscal year will be only s6.O0O.oOO leav-
ing balance of SIS, sos 900 out of the
| estimated surplus of $24 100000. The
premier said he proposed to reduce
| the Guty on sugar from As I'd to Is 10d
| per hundred weight. with the resultant
! loss IN revenue of $17.O00O00
This with the old age pensions, prac-
tically aNhausts Mr.. Asquiths esti-
mated surplus. Contrary to eXpecta-
tons the premier had no new taxes to
propose. Mir. Asquith spoke for two
| hours.
| pension scheme is hotly attacked by
! the Unionists newspapers this morn
ing. on the ground that Mr. Asquith
recklessly started plans requiring mil
| lions but left the onus of finding the
| money to his successors in the chancel-
| Iorship.
The discussion in Parliament last
night. both in the House and in the
Hobbies. however. left the impression
that the cleverly designed budget
| is likely to be fairly popular 1t had
been generally supposed that it would
propose increases in taxation. instead
! of which. while continuing to reduce
| the national debt it reduced the sugar
duty and proposed no new or in
! creased taxes
Much criticism is devoted to the de-
| tails of Mr.. Asquith's pension scheme.
| especially by the members of the La
! Dor party. who regard it as adequate
| but there is little doubt that the budg-
| opposition.