New-York tribune., 1908-08-23
ENGLISH ECONOMICS
procf;col Hints for the american
Voters.
London. August Is.

Ne ,.;,,s ~ disclose the progress of the Tariff
n.,--a movement in constituencies of every
- ,be-e are labor statistics and calculations
= -.,-e1ue which he finds il difficult to explain
How can he reconcile his assumption
81. the United Kingdom. blessed with Cobden-
- fs the most prosperous country On earth
=. .he rreo facts revealed by blue books-hrst,
-auperisrn IS increasing year by year, and.
- mat the percentage Of unemployed TO
rapidiy rfsingo The fiscal system has
-, ~, operation for over sixty years. and COM
s-,e and home industries have been perna-
s,,,v adjusted TO Il X ought by this time TO
= .,cornplishing maximum results in the i'm
s-oent OF the condition Of the working
,.sses but there is appalling evidence of
,s-,sr1 and lack Of work. One of the latest
- law reports makes the percentage Of. work
=, ont Of employment eight a hundred. and
.s,x IS clearly a lower estimate than the facts
-.--ont Both political parties have united in
,s,s,ou scheme for the relief OF paupers over
..ren.v which cannot cost the nation less than
s.aaeOoea annually In view of facts like
mss. how can any practical Englishman have
v,s,rninished faith in Free Trade as system
erich inevitably promotes prosperity?
-.A revenue problem is as serious as the evils
- nsuperisrn and unemployment The Liberal
-,e-nrnent is likely TO stand or fall by the sue
s.ss or failure Of MI Lloyd George in balancing
.hs largely increased expenditures OF the next
z,5set bv fresh sources of revenue How is
;. 70 raise about S60oo0,000 required for pen
.,ons enlarged naval grants and increased cost
:, .apcation? Mr Spender is thoroughly sane
,Ha-aJ with a natural turn for mathematics.
s-s he has been trying his hand at the problem
,-4begt results which he can consider encourag-
s,e He counts upon saving Of S2oUocoo ey
.-so1,s economies in administration. but that IS
euokoo song that will not deceive taxpayers.
"a estimates the gain from the suspension OF
she sinking fund service at Slo,ooO.oeo ana II is
not likely TO exceed that sum- He anticipates
.,o,ber revision of the death duties and the i'm
,ostion OF q super tax on high incomes. and
so-eoasts increased revenue of S25.ooO.eo0 from
.,.vs sources Practical fnanciers, however, are
e ,--4,cad that the limit Of direct taxation has
s,-sasv been reached, and that the treasury VIII
rst be enriched by additional processes OF con-
ssc.,fon Multi -rnilIionaires viii protect their
heirs bv distributing their property among them
au-snr lifetime. and super taxes viii be evaded
when they cannot be distinguished from ROB-
bsry.
What becomes Of the fiction OF Free Trade
-rosue-ttv when IL is necessary 10 have recourse
.o sveh desperate expedients for balancing the
budget? Large estates now pay toll 10 the eH-
.s-+ ~ q tenth or an eighth at Somerset House
a, death and succession duties, and elastic cacu-
,zto-s are already talking OF expanding the per-
oentase 20 one-ffth. There Is a permanent
shilling income tax. with rebate OF threePence
so- earned incomes OF moderate amount ana
there Is deliberate purpose OF increasing theSe
,sz,es upon large fortunes by diferential ratios
.,s .,,e- taxes What was once g resource in
reserve for the emergency Of war is now drawn
u-nn steadily at high pressure in time OF peace
,usen foreign relations are more Satisfactory
..,v.,,s s-s entente better ordered than at any
..,,s Once the Napoleonic wars and England
,x,,-e-aecv tn sea power is unchaHengeo- me
,,~o,o-4jons Of direct and indirect taxation nave
,-~- reversed since Cobdens time, ano lle pUf-
s.,s Of naval ornaments, complex adIhlHis'Id-
.-so, and pensions for veteran workers nave 70
he carried mainly by s small class OF taxpayers
,non whom they fall with cumulative 1orce- Is
-. -,,,sz- wanted for increased expenditures!
Il must be taken from this res1rlcIeo 0io
,zhi,b Is already showing unmistakable signs OF
1900, ard ir7poverishuent- There Is ap-
-,-.-.,-, m alternative under the CoDoenile
system- 49,, .+
Z--,,r the --,os- strenuous efforts on the part
pf the Liberal government 70 effect reouc'ioiis
NJ .xpenditures and with the saving IN I1i'eie'
following a considerable shr1nkaee OF ui0 nc
tsonaI debt Il has been tn1practlcaoIe 10 0O'1
g large increase Of outlay in adrnlnlstI atIoii- @
The annual expenditures are now 500 Z'S0o'-7o'
o- an increase Of s144, ,113.210 in ten years an"
Nr Harold spender's s6oeoeo foF lsnSi'',''
nzv~ and education is 10 be added TO this max Inah-
ing the aggregate increase over sZvoooo"'o
r,-sn 70 the pension system be allowed TO stano
xs ., has beer tentatively introduced-ano 10
-z--s-s1 roli4ician Of either party considers tnis
possible-the resources OF Free Trace hiAan0
gre 70 be strained 10 the uttermost IN Uiiio u
peace with nothing IN reserve put oorIo"iie oA
q large scale n the emergency OF war. 1no
navy must be constantly reinforced py cosuS
schemes Of construction, and the Ienslon system
cannot he dropDed now that il has been fairly
started. apd the money for the enlarged outlay
can come only from direct taxation SO long as
2 Isre-z, government remains IN power Not
only are the evils of rauperism and lack OF en-
ployment aggravated under Free Trade, put
capital IS also driven abroad, there Is a shrlhk-
age OF realized wealth, and the most use1ul
class Of taxpayers. men with moderate incomes
is steadily bled and impoverished
The revenue argument for a revision OF COD
dens system is likely TO become unansWefaDie
In the course OF two years Expenditures can
not be cut down and there must be Increased
revenues for meeting them and for financing
new social reforms: and low tariff on manu-
factured goods will be the natural method Oh
balancing q budget that is rapidly becoming
unn1snageabIe. Special pleas may be made for
colonial preferences and practical means ior
enforcing retaliation and conducting RECIPROCITY
negotiation; bat the necessity for obtaining ade-
quste revenue for treasury purposes VIII De
urgent, and tariff refoTr9ers viii have no othT
scheme for raising money than duties on manu-
factured goods when they return 10 power 1hlS
Is the result which thoughtful Free Traders
forecast as inevitable and Mr.. BaIfour has al
ready anticipated the trend Of fiscal controversy
by inventing the phrase-'broadening the basis
Of taxation" II is coming soon as the LAD
era administration conducted by Mr. AsQulth