The New York herald., 1922-05-02
RECOVERY
Shown in BUDGET
Shilling Off Income Tax,
Reduction OH Tea and
Coffee Proposed.
NO DEBT REDEMPTION
Sinking Fund Suspended,
but Interest to Be Paid
to United States.
NO DEBT REDEMPTION
PREDICTS PAR EXCHANGE
Chancellor Says Payments
From Germany Would Be
Considered Windfalls.

| Special gable to THE NEw York HERALn,.
| Copyright, 1899. bp THr New YoRK HERALD.
! New York Herald Bureau.
| london. May J..
| That England is coming back-re-
covering from war depression in trade,
business and finance-and that .he
Country is entitled to take some le-
gitimate pride" were the optimistic
! conclusions reached by Sir Robert
Stevenson Horne, Chancellor of the
Exchequer, in his speech in the House
Of Commons to-day introducing the
budget estimates for the fiscal year
! 1928. The Chancellor was loudly
| cheered. and frequently Interrupted
with expressions OF approval I'm
proved conditions, ne said, made possi-
bic TIE following proposals:
! A shilling off the British income
tax, which has been shilIings i'll the
pound sterling eco shillings).
| A reduction of the tax on tea from
l shilling to 8 pence on the pound
and a reduction of one-tkird in the
tax on cocoa, coffee and chicory.
Lower telephone charges.
Reassessment of land for house
property tax.
Reduction in agricultural ASSESS
ments.
Payment of arrears i'm the excess
profits tax, in certain instances. to
spread over five years.
Reduction in postal charges and the
resumption of Sunday collections.
budget shows Surplus.
The budget provides for f91o.775. 900
revenue and f91o069.oOo expenditures,
including f25.000,00O for contingencies.
Sir Robert praised the patriotic
character of the people. and said that
the redemption of so much OF the
national debt was very creditable to
the country" He alluded to the
solidarity of the banking system and
| the men who control it, He thought
II gratifying to be able to record that
| in the three years since the end of
March, 1919. the external debt now
amounting to e11.O00 100000 had been
reduced by 100000.
There is one NATTER said the Chan
ceilor. ito which I should like to draw
Your attention. namely. the Improvement
| In the value of the pound sterling as the
| first fruit OF our payment on the ex-
! ternal debt" He hoped that before
| long exchange would be restored to
par.
The budget was acclaimed as a Cow
ernment triumph by the majority; and
many OF It's features were praised by
the opposition. Certain circles are dis
appointed that only shilling has been
cut off the income tax. while labor
regrets that no reduction in the tax
on beer was mentioned.
Sir Robert Praises Banks.
! In giving a general survey OF condi-
tons, the Chancellor said:
The last year has proved one full
of unexampied trial and difficulty for
industry and commerce. and therefore
for finance. The first three months
| troubles which this country, and per-
haps any other country. has ever
known. That had very serious effect
upon our trade. with serious results
| upon revenue last year.
| Unemployment followed In the wake
OF these troubles. and their gravity
and extent throughout the whole year
| have been not only the serious and
| constant anxiety OF the people of this
country. but also have caused great
expenditure by the State. That we
! should meet these reverses without
worse calamities than We have endured
| Is eloquent testimony to the soundness
OF the country and the soidity of Its
| financial position.
! 81 should like to pay a tribute at this
| point to the banks. As one whose daily
duty IL has been closely to observe the
movements and vicissitudes of money
and business. ! have a clear conviction
| that throughout the crisis the country
owes more than adequately can be stated
to the solidity of our banking system
and the ability Of the men who control
| IL.
I'VE finished the financial year of
I 1921-1922 with less misfortune than
had anticipated. certainly with less dis
aster than my honorable friends OF the
opposition encouragingly predicted
Last years budget anticipated a reve-
nue. of twelve to sixteen millions and an
expenditure of eleven TO thrty-six mil
| lions, with surplus for debt redemption
OF eighty millions. The actual results
are Revenue. Fl .124, $50. 900, or f91. 900, :
900 less than estimated. and expcndi-
ture. f1.07e,fs7 900. or less than the esti-
mate by $1,000, 900, with surplus for
debt reduction of f45.500,00 This is
very credltable to the country
some Estimates Exceeded.
Sir Robert said that the amounts paid
into the Exchequer for excise and GUS
toms exceeded the estimate by fl,300 boo.
He said that beer had realized almost
! two millions more than the budget esti-
mate. with spirits under the estimate.
| Inland revenue duties as whole fell
below the estimate by more than fi10,-
100000, which arose almost entirely
from excess profits duties, witch showed
a shortage. The corporations profit tax
failed by ff2.500, 900. which, said the
Chancellor was due to trade depression.
In the income tax, taking all circum-
stances into account, I think we shall
agree that the yield was not unsatisfac-
tory. II Is n remarkable thing that we
should have collected nearly fi00, 000, 900
income and super tax That is attrib-
uted not only to the financial resources
of the country, but to the patriotic char
acter OF the people. Tho supertax
realized fl,I50.000 more than had been
/ expectcd.