New-York tribune., 1920-05-09
Terms of English Document
Show Determination to
Pay War Debt Within
Limited Time by Taxation
Big Business Hit Hard
Man in the Street Also
Must Bear just Proper
ton of Country's Burden

"i'"it hoei"Hdi llllilUS; America has
considerable to gain from studying
salient points of the British Chancel-
lor Of the Exchequer's speech intro
ducing the governments financial pro
posals for 192Oand 1921.
1t might we'll be said Of countries
that "by their budgets We shall know
them" Certainly it is true that es-
Inmates presented to Congress by the
various departments at WASHINGTON
are closely studied in England
Above everything else the terms of
the present British budget show this
country's determination to pay off its
war debt within limited numbeA of
years through taxation, and such a
move cannot but effect world markets
and the exchange.
Election Myth Exploded
The old election myth of "making
Germany pay"--a sentimental post war
wave, which carried manay members
of the present coalition into Parlia-
mentr-has been exploded once and for
all, Britain is going to pay herself
that is what the budget says to the
world. She is taking what is now
realized to be the only possible step
toWol0 HcT 1OTI0eT DOMINATING posi-
tion in world affairs.
Big business here is hard hit by the
budget, but the inevitable betterment
of the country's financial position will
eventually react in favor of just those
businesses which are 50 heavily PEN
a!lzed by the unexpected increase in
excess profits taxes from 40 to SO per
cent, with new tax in addition Of 5
per cent upon companies profits.
There had been an agitation for re-
moyal altogether Of the excess profits
tax and the Chancellor's announce
ment to the contrary came as severe
shock 10 many interests. American
flnanciers who have been insisting that
England, even more than the rest of
Europe, must help herself before ask
ing further aid from the United States,
can consider this years budget as a
dependable promise of the present
governments intention to move stead
lily and rapidly in that direction.
twenty such budgets and our war
debt will be paid Off" said Austin
hamberlain.
MANY more such budgets and the
country will be ruined," was the bit
ter comment of Unionist NJ. P. with
large business; but British business
will pay, probably, in the end, will
lingly.
1mpOt on Liquors
Local interest in the budget lies
chiefly in those phases which will
in the street, of which the most talked
of to-day is the increased impost upon
wines, beers and spirits. BY those in
terested in "the trade" the budget is
described as "Prohibition budget"
The Chancellor is said to have gone
Pussyfoot one better" There are dark
hints the prohibitionists have exerted
influence upon the cabinet and secured
passages raiding the duties on LIQUOR.
Experts say. that the additional i'm
post upon spirits and beer mark the
limit Of profitable taxation-the point
at which reduced consumption turns
off the tap.
A bottle OF whisky now costs the
consumer, or rather the purchaser, so
cents more than it did yesterday. The
worklngman pays two cents fore for
his glass Of beer. The exchequer now
takes eight shillngs and sixpense on
each bottle of whisky.
An interesting spot in Austen Cham
berlaln's speech was where he attri-
buted the increased revenue from the
sale of tobacco to the increased num-
ber of women smokers.
Another feature of the budget, which
hits the small purse, is the increase
IN postal rates. Letters are now four
cents for three ounces instead of three
cents kilograms cost a shilling for
twelve words and two Cents for each
additional word, the initial cost on
Sundays being one shilling and six
pence.
Income Tax Changes
The income tax changes nronosed
are somewhat involved. Briefly, they
ried couplA with small incomes a
heavier tax on bachelors and a still
heavier lmpoSt on incomes exceeding
$4,000. e
The estimated expenditure for 1920
and 1921 Is less by 234,19S,0OO pounds
than the estimated revenue, and it is
duction Of the national debt L'f No No
stacking is what the Chancellor had
the courage to tell the country,
Britain must pay for the pride she
will eventually take in the results
promised by increased taxation.
That pardonable pride probably will
do much to soothe the at present
highly injured feelings of many mem
bers Of Parliament with big businesses
of their own.
10 sum up British opinion, the
budget is considered drastic, but on
the whole quite acceptable 1t has by
no means warm welcome, but no
British budget ever has that; BUDGET
hits too many sensitive pockets. This
one was received with more favor than
was expected
Criticisms are, of course, hurled at
the Cchancellor of the Excheuuer for
his failure to promise substantial re-
duceions in Britain's permanent an
nual expenditure. One well-known sec
tion Of the British press reiterates it's
parrot cries: "Wasten "Economy,"
and attacks the proposals upon this
ground.
Another defends big business. One
paper calls it "rich mans budget;
another poor mans budget" Each
faction of the Fourth Estate has its
own ak to grind. It is, generally
speaking, the Unionist press which con-
demns; the Liberal and Labor press
which approves strange reception
for the proposals Of a Coalition
Unionist of Austen Chambe rlain's ten
dencies.
Within Commons it is much the
same. The Chancellor's own friends
are hardest hit and bitterest in CON
demnation. The Opposition, primed to
oppose, remained to cheer There is
criticism on the ground that the
LANDED gentry" has been spared,
Otherwise it is generally held by the
Opposition that increased burdens OF
taxation and impost have been put