New-York tribune., 1909-04-30
A FREE TRADE BUDGET
RESOURCES OF LIBERALS
At IN END.
British Tariff Reformers Fcresee the
Fulfiment of Their Policy
The Ne7c Duties.

Especial bv French cable to The Tribune.I
London. April 29--What is described by
prominent Unionist the final free trade
budget" was introduced to- day by David Lloyd
George. Chancellor of the EXchequer in q long
and labored speech. without flashes of -humOr.
1t was followed with intense interest by a
crowded house, and was we'll received by the
Radicals and Labor members The tariff
formers IN the Iobbies during the recess caused
by the breathIess Chancellor's exhaustion,
pressed hearty satisfaction over the practical
demonstration that the resources of free trade
had been drained to the lowest dregs and that
the moneys hereafter for the navy and for social
reforms must come from a general tariff
More than e160oO,000 required by the shrink
ing revenues and increased expenditures due TO
old age pensions and Dreadnoughts is drawn
mainly from direct taxation. About one-haf is
obtained from the rich by increased death. sue
cession and legacy duties increased income tax
alton and motor and petrol taxes.
The bleeding process can hardly be carried
further by any Radical Chancellor of the EN-
chequer fresh levy is made upon stock
transactions in stamp duties. and excise duties
are heavily increased. Only t3on0O0 is saved
on the debt service. Tobacco and spirits are
taxed afresh but there are no additions to in
direct taxation in coal. tea and sugar duties.
The account was balanced and a big def
with little breath left in his lungs. finished his
speech. vet there was little originality in his
scheme The motor and petrol taxes were al
most the only surprises. The levies of direct
taxation. which are already driving capital out
of the country and exhausting the taxpayers OF
moderate means were increased relentlessly.
and apparently. II the Chancellor produces
budget in another year for eight Dreadnoughts
and more costly social reforms. there Will be
no other resource available under free trade.
The most controversial question reserved
for the closing passages OF his prolonged speech.
These related to a new system or land taxation,
which was timidIy almost apoogetically,
ulained What the reformers have been clamor-
ing for has been the taxation Of the unearned
increment of land and mines the value OF
land sites apart from buildings. The Chancel-
lor has announced that the state will take ~
per cent Of the unearned increment. put a half
pennv on the capital value Of undeveloped land
and tax unimproved mineral lands and royalties
but these taxes will be restricted 10 a value
accruIng hereafter on the basis OF valuation
which will be made this year. These land taxes
will not he retrospective and VIII not yield more
than fJD0OO0 IN the first year
A paIpable attempt is made TO minimize these
new taxes. SO that the Lords will be tempted
TO make a stand against them. reject the budget
and bring or a general cleo tion. Whether the
Lords will adopt the extreme course OF holding
ND the business Of the government for meagre
half million on future gains in land values can
not be determined until July. The land takers
we're not satisfied with what they considered
beygarlv application Of their favorite policy OF
bleeding land owners and forcing them to pay
the costs Of the social reform Mr. Lloyd
Georges speech was q source OF disappointment
to the followers Of the ministry 1t contained
more evidences of compromise than of con-
structive craftsmanship big progressive
measure like the famous Harcourt budget was
expected. It was not forthcoming. because Free
Trade finance has run It's course in England
|. y. f.