Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-05-09
BY FRANK W. GETTY.
BY Cable to The Star and New York
Tribune. Copyright, 1920.

By Cable to The Star and New York
Tribune. Copyright, 1920.
LONDON. May S.-lnterest in the
budget of country of England's
world importance cannot be confined
within the national limits; America
has considerable to gain from studying
salient points of the speech OF the
British chancellor of the exchequer
introducing the governments finan-
ciaI proposals for 1920 and 1921.
1t might well be said of countries
that by their budgets ye shall know
them" Certainly it Is true that esti-
mates 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 it's
war debts within a limited number of
years through taxation. and such a
move cannot but affect world markets
and the exchange.
Election Myth Exploded.
The old election myth of making
Germany pay"-a sentimental post
war wave. which carried many MEM
bers of the present coalition into
parliament--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 toward her former dominating
position 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 so heavily pen
allied by the unexpected increase in
excess profits taxes from 40 to 60 per
cent. with a new tax in addition of
5 per cent upon companies profits.
There had been an agitation for re-
moval altogether of the excess profits
tax and the chancellor's announce
ment to the contrary came az severe
shock to many interests. American
financiers who have been insisting
that England. even more than the
rest of Europe. must help herself be-
fore asking further aid from the
budget as dependable promise Of
the present governments intention to
move steadily and rapidly in that
direction.
Twenty such budgets and our war
debt will be paid off," said Austen
Chamberlain.
Many more such budgets and the
country will be ruined" was the bit
ter comment OF a unionist NJ p. with
large business: but British business
will pay. probably, in the end. viii
iingly.
ImpOxt ON Liquors.
Local interest in the budget lies
chiefly in those phases which will
reach the purse and thirst of the man
in the street, of which the most talk
ed-of today is the increased impost
upon wines. beers and spirits. BY
those interested in the trade" the
budget is described as a prohibition
budget" The chancellor is said to
have gone Pussyfoot one better"
There are dark hints the prohibition
lists have exerted influence upon the
cabinet and secured passages raising
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 there is reduced consump-
ton.
A bottle of whisky now costs the
consumer. or rather the purchaser. 80
cents more than it did yesterday. The
working man pays cents more for
his glass of beer. The exchequer now
takes . shillings and pence on each
bottle Of whisky.
An interesting spot in Austen
Chamberlain'S speech was where he
attributed the increased revenue from
the sale af tobacco to the increased
number of women smokers.
Another feature of the budget.
which hits the small purse. is the in
crease in postal rates. Letters are
now 4 cents for three ounces instead
of cents. kilograms cost l shill-
ing for twelve words and cents for
each additional word. the initial cost
on Sundays being l shilling and 3
pence.
Income Tax Changes.
The income tax changes proposed
are somewhat involved. Briefly. they
provide measure of relief for mar
ried couples with small incomes.
heavier tax on bachelors and a still
heavier impoSt on incomes exceeding
$4,000
The estimated expenditure for 1920
and 1921 is less by 234.l9s,000 pounds
than the estimated revenues. and 1t is
proposed to apply the balance for re-
duction of the national debt. 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 proba bly, will
do much to soothe the at present
highly injured feelings of many mem
bers of parliament with big business
Of their own.
To 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 chancellor of the exchequer for
his failure to promise substantial re-
auctions IN Rritains permanent an
nual expenditure. One Well-known
section of the British press reiterates
its parrot cries: Waste" Economy!
and attacks the proposals upon this
ground.
UniOnfst Press Condemns,