The Birmingham age-herald., 1908-05-08
BUDGET
 AWAKES INTEREST
House of Commons Is Crowded
 With Spectators
MIR. ASQUITH EXPLAINS
Old Age Pensions Are Provided From the National Treasury-Duty On Some Classes of Goods
 Must Be increased.

London, May 7,-The budget for the first time in many years was presented to the house of commons this afternoon by the premier, MT. Asquith. instead of by thee hancellor of the eycnequer. This departure from precedent is a result of the recent charges in the cabinet and 1t is thought better inasmuch as MT. Asqui'h in his capacity as chancellor of the eX- chequer had prepared the budget that he should himself explain it to parliament.
 No budget has been awaited with as much interest as this one. Everybody was keen to learn of the governments scheme for old age pension the house consequently being packed and it's gal leries were overhowing with visitors.
 Mr. Asquith, after commenting briefly on the present slackening of trade throughout the world following the boom year of 1907 announced that Great Brit aims realizing surplus for the year 1907 0S amounted to $23, e3O,000, which he said would be largely applied to the reduction of the national debt.
 Commenting on the differentiation in the income tax introduced in the last budget, Mr Asquith said this had proved prac- tical; that it had worked easily; that 1t had removed irregularities, and that It had brought in $9,400,000 more than had been estimated.
 The national debt, the premier said, had been reduced by approximately S90,OO0O0O during the past year. further reduction of about s75, 900 would be effected dur ing the current year and Great Britain's debt would then stand at the same figure as 20 years ago, in spite of the great cost of the South African war. Some other countries, MT. Asquith said, which wele supposed to enjoy happier fiscal system than Great Britain were obliged to DOT row yearly to make both ends meet. It was not an unhappy reflection on British conditions that in three years the country had heen enabled to pay off between $20o,- 0OO.0o0 and $25O 0oO,O 900 of it's debt.
 MT. Asauith estimated the total expendi- lures for 190S-l909 at $764, ,345,00O, and the revenue on the existing basis of taxation at $7SS, ,S5O,000.
 Coming to the main feature of the budget-the matter of old age pensions Mr. Asquith said it had been decided to rule out all contributory schemes ana provide the pensions from the national treasury.
 A universal scheme of pensions was outside the range of practical politics. In order that lunatcs, criminals and per sons now receiving poor law relief should be ineligible under the proposed system II had been decided to start with pension of S1 25 a week to persons over 1o years of age in possession of incomes under s13O a year. The premier estimated that the pensioners will not exceed 5OOO0O, and that the cost of the scheme would be $S0,- 00OOO0 a year. It will come into force January 1, 1909. Stringent conditions would be laid down for forfeiture and suspen- sion; and if this was socialism, the pre- mier declared, it was socialism of kind that both parties accepted.
 As the scheme will not go into effect January 1 the cost for the current fiscal year will be only $6,OOO,O0O leaving bal ance of SIS, ,505 600 out of the estimated sur plus of s24,5O5,OO0 The premier said he proposed to reduce the duty on sugar from As 2d to Is 1Od per 100 weight, with a resultant loss on revenue of $lIOO0,0oo This, with the old age pensions, prac- ticalIy exhausts MT. Asquith's estimated surplus.
 Contrary to expectations the premier had no new taxes to propose.