Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-09-22
GREAT BRIT AIMS ]
WAR REVENUE
Chancellor McKenna Pre-
sents Plan For Meeting
Huge Expense
ANOTHER INCREASE.
National Debt of Eleven Billion Dol
lars Expected to Pile up by Close
of the Present Year.

London. Sept. 22-The present
radical occupant of the Chancellor
ship of the Exchequer, Reginald Nc
Eenna. was forced by circumstances
Yesterday to revert to some extent
10 the principles of Joseph Chamber
lain.
He was compelled to half mast
the free trade flag and replace it by
an embryonic representation OF a
tariff reform banner, in Introducing
in the House of Commons Yesterday
the largest budget on record.
Faced with huge bills for war and
ordinary expenditures, aggregatlng
in the neighborhood of f5,OOO,OOU
(s25 ,OOO) daily, and bent on rails
ing large sums toward the current
cost of the war by taxation. apart
from loans, the Chancellor proposed
g. sweeping increase in taxation. He
went beyond the customary sources ol
revenue, such as the income tax, tea
and tobacco, into the wider field OF
revenue raising advocated by the
great Tory statesman who resigned
1ffice TO prosecute his tariff reform
campaign.
Fiscal theories must 30 by the
Hoard. Mr.. McKenna declared. He sald
he was actuated by the two fold prIn-
cipIe Of raising additional funds and
enforcing economy by means of taxa
ton
The Chancellor estimated that the
Governments revenue for the current
wear would be g272,OOO,000 (Sl,3G6,-
O.OO0), that the expenditure would
reach e59O00O.O0O ($7 $50 ,O0000O) and
that the dead weight of debt at the
close of the financial year would be
g2,2 2.O0O. 900 (S1l 100000, 0,0Oc).
Mr.. McKenna proposed an addition
af 40 per cent. to the existing IN
come tax and the taxation of all IN
comes of sl30 ($650l or more The
present minimum is fl6O.
; The Chancellor also proposed an
increase in the duty on sugar 10 IS.
4d. (S2.24 per hundred weight
A heavy tax on the profits of manu-.
facturers of war supplies also was
proposed by the Chancellor. Fifty
rer cent. of all war profits above the
amount assessed for the income :aX
last year will he subjected to Spe-
cial tax. which works out at 60 per
cent. of the profits. Mr. Mckenna es-
timated the revenue from this source
in full year at G30,OO0,000 $3.50. .O00-
000).
An allround increase OF 30 per-
cent in the duty on tea, coffee. chlcory
tobacco, dried fruits and other ar
tpcles was suggested and also an In
crease of 100 per cent. on patent me-
dicines were proposed.
Another source of revenue Is to
he an increase in postal rates, which
is expected to bring in f4,975.OOO
(S24,S75,000) The Chancellor plans
to abolish the half penny postage anc
TO impose additional charges on tele
phone messages.
A tax Of 33 l-3 per cent. ad valoren
, on all imported motorcars. bicycles
nioving-picture films. clocks ,watche:
, musical instruments, plate glass ant
, hats. also was put forward by thu
Chancellor.
1t took Mr. McKenna nearly tw'
hours to reveal the secrets of his bud
get and his proposed methods of meet
ing the enormous commitments aris
ing from the war.
= Referring to the gigantic total o
expenditures, the Chancellor said tn
navy was costing e190,0OO,000 ant
the army 100000. The countr
also had to bear external advance
amounting to 100000. The tota
daily rate of expenditure would b
upward of e4.500,0O0 and in the Lat
/ rer part of the year might rise t
), ,-.s5. 100000. -,
! Ordinary services he said, absorb
!. ed sr70,000,000, excluding the arm