Evening star., 1923-04-22
.bONAR LAWS HOLD
ION RE|NS STRONGER
Budget Tends to Add
Strength to Conservatives
With Grip on Government.
BY A. G.. GARDINER,
Britain's Greatest Liberal Editor.

BY Cable TO The Star
LONDON. April 21.-The Baldwin
budget tends to strengthen the po-
sition of the government 1t has
been in danger due to the recent de-
feats of ministers contesting by
elections and because of the rumors
concerning the health of Premier
Bonar Law. 1t generally has been
agreed that Bonar Law is essential
to the existence of the conservative
government, because it was due to his
action last autumn that Lloyd George
was oyerthrown. While he remains
the government remains. When he
retires 1t falls.
Lloyd George Active.
The movement for the formation OF
center party continues with Boyd
George, Churchill, Chamberlain and
Birkenhead striving to gather their
forces into a single body. The at
tempt of George to regain admission
to liberal headquarters. followed by
the reports of Bonar Laws ilI-hea1th,
created excitement in the coalition
camp. This movement on the part of
the former premier was blocked by
Asquith and now it seems certain
that. should anything happen to com
stampede of the coalitionists TO
swing George back to leadership
The fact that Laws friends insist
his health is much better has helped
him and now the budget further
strengthens his position. This budget.
by the way, is not sensational nor
heroic. but it is sound and substan-
tial. It takes sixpence off the income
tax and a penny off the beer. The in
come tax still Is nearly five times the
pre-war rate, while under the super
tax on big incomes the latter pay up
to so per cent.
Labor Is Opposed.
Opposition to the budget comes
from labor, which wants d material
levy made on capital. 1t insists on
the immediate need for a reduction of
the staggering war debt and claims
such a levy is the only practical
means of achieving it. The labor
program has the support of certain
business interests which insist that
the existing heavy income tax is far
more prejudicial to trade than would
be heavy levy on capital which
would wipe out a great portion of the
floating inde btedness.
There also seems no immediate
prospect of reforms in the housing
yet be compelled to concede the sub
Sidization scheme on an unprece-
dented scale. The house shortage is
declared to total a million, and with
the present cost of labor and mate
rials 1t is impossible to erect houses
so that they can be rented at fair
rental to the workers
Cost Is Unknown.
What the subsidy will cost the
country nobody knows. Nor can econ
omy be looked for in expenditures for
the national defense while France
continues her gigantic military sys-
tenn and is building airplanes and
subm marines as though threatened by
In a word the financial recovery of
England depends today on the general
course of France. Unfortunately we
at this writing see little chance of
improvement along this line. France
makes no concealment of the fact
that she has Germany by the jugular
vein and has no intention of letting
go.
The question is who will last the
longer in this incredible tug-of-war.
and all visitors to the Ruhr express
the utmost astonishment that the
people are able to endure under tho
circumstances. The condition of the
children there. who are almost en-
tirely deprived of milk is especfaIIv
painful. but SO far there is no symp
tom that the temper of the peonle is
breaking under the stress of hunger
and deportations.
On the other hand France IA he
ing severely punished as her coal i'm
| ports are negligible and her Lorraine
| furnaces are at sthndstill. The cost
Of occupation Is increasing by leans
and bounds and France can no Longer
look to the allies to share this ex-
penSe.
But whether and when the break.
ing point will be reached, and who
1t will be, no one today can say.
Copyright. 1921