The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-10

tho country 10 busy discussing the
budget, pro and con,
| On a hot June afternoon the House
OF Commons sat almost listless. while
the Minister OF Finance reeled OF the
staggering figures Of the country's A.
nancial load, but rejoiced with him in
his note Of optimism at the close that,
after all. IL the country will pull to-
gether and work hard, there Is no rea-
| son to dread the future. II was a cour-
aseous speech, and a country that has
learned TO largely finance itself through
a great war should rally to the call and
moke success Of peace as II has done
Of war.
1t is difficult to realize that the war
hah cost Canada, up to March 81 last,
N,s2Tooo.ooo, and that the coun-
uy's national debt, which was $685.
100000 on March 81. 1914. will have
reached about 1880, 100000 at the
END Of March, 1s2o--the present fiscal
year being still considered a war year.
To meet this great burden there will be
ar annual interest charge Of about
Sllb,0o0. 600. and q charge for pensions
o. s3b,0oo,o00 or more. Cir Thomas
whites proposal was that ordinary rev.
| enoes should be applied to ordiusry ex-
penditures this year. and that, an II Is
sun war time In the financial sens the
balance should be borrowed. After that,
however sinking fund arrangements will
De made. and 1t is hoped the country
can get down to a system Of paying off
| it's debts
with such a load TO carry, what
could be done TO ease the tax burden
That IL the question whose answer the
country anxiously awaited. 1t was be-
coming increasingly apparent for some
weeks past that no radical reduction in
the tarin could we'll be expected; and
| the slight reductions made, together
| with D promise of an inquiry and full
revision year or so hence. were no
| great surprise. There had been a steady
agitation from the grain growers of the
West for low tariff, and the Finance
Minister was at considerable pains TO
present an answer to their appeal.
| Many people had expected the COM
plete repeal OF the war surfaces of S
per cent, on goods subject to the British
pi eference. and TN per cent. on the
general tarin Items The per cent IL
wiped out fatly. and the TN per cent
Is repealed on a selected list OF Items
including foodstuffs, clothing, boots and
shoes, hides, agricultural implements.
oituminous coal and few other articles
Further Concessions Made.
Reductions Of FIVE cents per pound on
coffee and three cents per pound on
British grown teas, and the continuance
or the free Importation of wheat, wheat
nour and potatoes from countries which
DO not impose customs duty on such
articles from Canada (including the
United States) are further concessions
Dealing more especially with the
claims of the Western grain growers for
lower priced agricultural implements, the
Finance Minister announced a scale Of
reductions from 271a to IL per cent. on
such articles as cultivators, harrows,
horse rakes. seed drills and 27h to I'M
per cent on ploughs, windmills, portable
engines and several other articles. The
interesting point about this plan Is its
resemblance TO the terms OF the reel
procity agreement of 1911. A close COM
parison shows that in 4 number OF cases
the duty on farm implements now will
be slightly less than that proposed in
l91l-a fact which will no doubt form a
conspicuous point of argument In the de-
bate in the House.
Perhaps most important from the
standpoint Of the country at large is the
considerable increase In income taxation.
This was to be expected and Is con-
cession to labor opinion as well as a Just
measure of revenue production under the
present circumstances. II only this
Wholesale gathering OF revenue from the
country at larBe-where previously only
indirect taxation applied for Federal pur-
poses--can lead to a deeper interest in
Federal affairs and expenditures the
policy will serve a double purpose. The
present schedule still falls somewhat be-
low that in force in the United States,
but II is so much In advance of previous
provisions that doubtless all the coun-
try will readily accept II at the present
time For example. the tax on a $40. 900
income will be $500 instead OF s392, and
on sac, 900 II will be 1890 instead of
1882. On a $1,000. 900 income the tax
will be s663.le0, compared with $4s9.l57;
but as there are probably not more than
half a dozen Canadians In receipt of this
income the country at large has not
much more than a sentimental interest
in that figure.
The continuation OF the business profits
tax Is a disappo intment to the business
world, but that was to be expected, and
on general grounds Of policy can be well
justified. A schedule OF taxes on luxuries
such as sleeping car berths. matches and
playing cards, automobiles. gramophones.
player pianos and the like, imposed dur
ing the war, remains In force. as no
mention OF 1t was made during the bud
get speech.
AS matters now stand Sir Thomas
White estimates q total expenditure
curing the present Hschi year VI toNV'-
0OO, 900, against which the ordinary
revenue under the methods of taxation
previously In effect would produce only
$3.50 900, 900. Against the losses from re-
auctions in tariff there will be some
gains. especially from the higher income
tax when II becomes effective but in any
Gu BE there will still be large deficit for
the year. which must be met by do
nestle loan 10 be fioated probably In
August or September.