New-York tribune., 1919-05-01
Chamberlain Outlines Fin.
ances for Third Time Be-
fore House of Commons:
1890, 100000 in Sight
New Taxation Necessary
Chancellor Expected to Raise
s5,000,O 900, O,OOObyLevies
and Remainder by Loans


Exchequer. 1t was his third appear-
ance before the House in that capacitv.
ne previously having outlined the bud
get in 1904 and 1905.
On the previous occasions the bud-
gets were comparatively easy tasks
ana there was no difficulty in making
the national revenues and expendi-
lures balance. For this financial wear.
however. the Chancellor of the Ex-
chequer has to find $7bOo,oO0,00. to
meet which, on the present basis Of
taxation, he can count on S4.68O .O0O.-
600, including the outstanding excess
profits tax.
New Taxation Necessary
Therefore, some new taxation is nec-
essary and there has been much
ANXIOUS aI: speculation as to what form
that the Chancellor will attempt to
raise $5,0o0,0 100000 by taxation and the
remainder by loans.
Mr. Chamberlain said that of the
total expenditures for 1918-19. 84.4
per cent had been provided from rev.
enue and the rest by borrowing. The
brltlsh record in this respect during
the last five years. he added, was one
winch no orner belligerent would
equal.
The expenditures for the current
year, ne added, had been estimated at
$7,170,095, 900.
The Chancellor declared that the ex-
pansio,n of the floating debt could not
be be allowed to. continue indefinitely.
mere mad been no forced issue of cur
rency notes. The initiation of cur
rency was worldwide phenomenon
at the present time, he added.
Continuing, Mr.. Chamberlain said
the first remedial measure for inflated
currency was to reduce expenditures;
second, to pay expenditures as quickly
| as possible out of revenues, and, third,
to borrow as much as possible from the
real investors and fund short-dated
securities.
Mr. Mr.. Chamberlain said the expendi-
lures during the coming year would be
increased by an overlap of war charges.
sheet would give true idea of the
postwar financial situation.
" In dealing with the future I have
TO imagine the time when we shall haye
returned to something like normal and
estimate the revenue of the future
normal year on the existing basis of
cellor declared
The Chancellor estimated that thu
revenues in the current year would he
$o,198, 100000 without new taxes. or
$1,ooo,ooO,oO0 more than last years
receipts. The national debt on March
81, he continued, was S37,175 900 900
compared with the estimate of wear
ago of $4,000, 100000 and 1925 ,00O.-
ooo at the outbreak Of the war.
100000 Day Saved
The Chancellor stated that from April
l, 1913, to November 10. the daily
expenditure had been $37,215, 900. and
since the latter date $34,38O 900 Tho
reduction, he said, would have been
greater but for the expenditure in con-
nectlon. with rehabilitation, the paw
ment Of $260,000,000 for gratuities and
S65,OO0,000 for unemployment allow.
ances.
The national assets, Mr.. Chamberlain
announced, included $685., 900 due
from the allies and the dominions
Russia alone, he said, owed S2.84O. 900.
oUO. Other assets were indemnities due
from enemy nations.
The Chancellor said the excheouer
issues last year were less than had
been estimated by $1,9e5, 100000. The
estimated daily expenditure had been
$40,715,000 and the actual expenditura
$35, 1886, 900.
VI the actual debt incurred the in
ternal debt accounted for approx
mately $30,425 10000, and the AZ
100000. S'''o0'
War saving certificates, the Chancel-
lor continued, were issued at 81 and
are repayable with SIS. This involves
an additional obligation Of 1926. .0O0. 900
A large part Of the internal nI'iHIy,oio, debt' be
said. was represented by national war
bonds, repayable at premium, and
this premium represented a further
liability Of $258,5SO,O00.
The duty on benzol will be with
drawn, the Chancellor declared, in or
der to encourage production. The Ii
cense duty on gasolene also will be
withdrawn. The land tax and the gaso- i
ene tax will remain unchanged pend
ing a detailed review.
OF the amounts due the government.
he continued, $855,0OO,OO0 was owed by
the dominions, $2,17O, 600, 900 by France.
S2062,600,000 by Italy, $433, 1896, 900 by
Belgium, $93,215,00O by Serbia and
$239,575,000 by other Allies.
To Drop Luxury Tax
The luxury tax, the Chancellor de-
celared, would be dropped An increase
in the supply and quality Of beer will
be allowed at the present prices. The
duty on beer will be raised from $6.25
to S8.75 standard barrel, while that
on spirits will be increased from $3.75
to $6.25 a proof gallon.
The increased duty on beer, the
Chancellor estimated, will produce
$156,000,0oo in full year and s111,-
100000 this year. The increase on the
duty on spirits will produce this year
sos, 100000.
The excess profits tax will be con-
tinued for one year at the reduced rate
Of 40 per cent.
The revenues also will include the
sum of $1,000, 900 on account Of the
excess profits duty for accounting
periods already closed or running out