New-York tribune., 1909-02-08
THE BRITISH BUDGET
Il Serious Financial Problem for the
Liberal PartY.

London. Jan 2s.-since the return 70 town OF
the members Of the government there have been
frequent meetings of the Cabinet TO arrange the
programme for the coming session of Parliament.
ne Liberals in the past have made practice OF
| loading the Kings speech with proposed measures
many Of which before the close CT the session they
nave been compelled to drop or have lost
through the action Of the Lords This experience it
Is understood. las iupelled the Prime Minister Il.
H AsQuith to start this year with & numerically
small programme Its Importance, however is
pected 70 exceed that OF any session years
The leading feature will be the budget TO be in
troduced by David Loyd-George. the Chancellor Of
the Exchequer- No radical changes have been made
for many years in the system of taxation. This
year. IT is predicted viii a departure Cabinet
ministers have said in speeches that the budget will
not be a radical "If there no radical
changes" ask the critics OF the government '9how
do you propose meet the increased charges with
a greatly reduced revenue?' This is the difficult
question which the is waiting for the Chan
cellor Of the Exchequer to answer.
Experts estimate that, with the necessity Of
financing old age pensions the promised additional
expenditure to keep the navy up 10 the two-po~er
standard the certainty of large realized deficit,
which Is likely TO be repeated the present basis
Of taxation. and various incidental and automatic
increases. the government will have to ind nearly
10000. 900 more than ordinarily for the coming
financial year.
The old age pension scheme has already cost
than anticipated. and the Laborites and Radicals
demanding the removal Of certain disabilities
which at present prevent many old persons from
claiming the pension. If the demands are acceded
to-the Chancellor Of the Excheouer has promised
II consider then-the increased cost will make in
creased taxation necessary.
The members of the government have further
pledged themselves to maintain a twcpoweT stand
ard. with q 10 per cent margin. for the navy The
most conservative naval officers say that the com
ing budget must provide for at least five capital
ships
On top Of this increased expenditure is the deficit
The problem is where the money is TO come from
Thus far six methods have been suggested To IN
the payments account Of public debt which
the present government has prided itself 10 take
part OF the required amount from the sinking
fund: TO place heavy supertax on large incomes:
Increase the death duties; land values and add
70 the duties on saloon licenses Only the last tVo
proposals meet serious opposition The others, said
z prominent Conservative member of Parliament
are purely financial proposals. temporary in char
scter and capable of readjustrnent and the budget
would not be opposed for contai ming them
The taxation OF land values is open TO the objec-
ton from political standpoint that it would be
opposed by small land owners, many Of them gov
eminent supporters It IS believed therefore that
the Chancellor Of the Exchequer will raise the
extra money necessary by e combination % the
other I've suggestions
Although the Lords have no power 10 amend
budget they have the power to reject II wholly II
is open secret that powerful section Of Union
lists are urging Lord Lansdowne. the leader OF the
upper house, take that course should the budget
be considered TOO radical The only possible result
Of The Lords rejection Of the budget would be en
appeal 20 the country. With this in view moderate
liberals, including The Westminster Gazette. the
government organ, are urging the government 70
avoid II possible further clash with the Lords
Other measures likely 10 fnd 2 place IN the pro
grarnne the house and town planning and the
Irish land purchase amendment bills, put OF from
the last session. and the India reform bill fore
shadoved in Lord Morley's speech at the close ,of
last session In some quarters il is expected bill
will be introduced for the dsestablishuent Of the
Church in Wales, for which welsh members have
haAr clarnnring-