New Britain herald., 1925-04-28
Winston Churchill, In Budget Address, Also Announces Promise of Big Credits in United States.
This Will Be Used Only if Necessary - McKenna Duties on Imported Luxuries in Force Again July 1.

AuAuIiCS HI II UlIC ABdllt
 July 1.
 Dy The Associated Press.
 London, April 2S.-The gold standard in England will be restored dating from today by a special license to the Bank of England to export gold bullion, it was an- nounccd by Winston Churchill, chancellor of the exchequer, in his budget speech in the house of com- mons this afternoon.
 The banks special license, Mir. Churchill said, would operate from today pending the formal lapsing on Dec. 31 next of the 1920 act pro- hibiting the export Of gold bullion.
 Mir. Churchill characterized the yield from internal revenue as sat- isfactory.
 Excess profits and corporation profit taxes showed a deficit of f9,000,O00 sterling, but these were moribund taxes and were more than counter-balanced by the yield from income tax. super and death taxes.
 Maintains Consuming Power.
 The consuming power of the Brit ish people has been maintained, de- clared Mr. Churchill.
 He said he realized that the sur plus of the late chancellor's estimate corresponded with remarkable &C., curacy to the budgets revenue from spirits. Tobacco had failed f2,000,000 sterling below the last budget esti- mate, but on the other hand beer had advanced by a million sterling. Credits In U. s.
 Mfr. Churchill said he was making arrangements to obtain credits in the United States for not less than S300,- O00,000, with possible expansion.
 The American credits being ar- ranged for, MT. Churchill said, would only be used if and when re- quired, and he did not expect that it would be necessary to use them.
 The Gold standard
 With regard to the reestablish- ment of the gold standard MT. Churchill said he would introduce a measure providing for internal treas- ury notes as well as Bank of Eng land notes, which would be conver- ible into coin but only at the option of the Bank of England.
 The reestablshment of the gold standard, he said, did not necessar- fly mean a return to gold coinage. Churchill appealed 10 all branches of the people to continue the use of notes.
 Simultaneously with these provis- ions, he said. the Bank of England would be obligated to sell gold bull lion in amounts not less than 400 fine ounces in exchange for legal tender at a fixed price of f5 17s 1012d per standard ounce. The accumulated gold reserve was 53,OOO,0O0 sterling, part of which was in dollars, to the amount of S1GG.o0O, ,O00, the chancellor an- nounced. This dollar reserve, he said. would be required for the June and December American debt fund , ing.
 Duties on Luxurics
 NIr Churchill proposed the reim- position of the McKenna duties up- on imported luXurios, The interest on the British nation- al debt, Churchill announced, has been reduced since 1920 by more than f7U,000,00O sterling. It was i'm portant he said, that policy of debt repayment should continue.
 The nominal dead weight charge of the debt had decreased from IT, GS0. .0oo, 900 on March g, 1924, 10 fIG46.00O. Churchill said he pro- posed to raise the sinking fund to the statutory limit.
 The total expenditure budget. Churchill estimated at $799,400,ooo sterling wlIch is t9,4n0,ooO sterling more than last years budget pro idcd This the chancellor termed as "a very disappointing result"
 Mir. Churrhji estimated the reve- me for the current year upon the existing hasis Of taNation at fS26,- 00o o0n sterling. He estimated there would he q surplus of f26,oon, ,oon sterling or thc present basis of taxa ton
 While counting upon f9SOo,O0O sterling from German reparationA MT Churchill said he was not bud getting any repaymonfs of allied dehts 70 England, which he said would came as additional relief if they should be made.
 The reimposed MrKenna duties will he effective July 1. Mr. Church 1T announced
 Wines and Fruits
 The chancellor announced that sugar would he restored 10 the list of commodities under the imperial preference plan. Preference would also be applied to dried fruits and heavy and sparkling wines.
 Tho standard rate or the income tax will be reduced by six pence in the pound sterling, which Mir. Churchill announced.
 The imperial preference on tobac- co will be increased from one-sixth 70 :No Full duty 10 One-fourth.
 The chancellor preceded his stats-
 2