Evening star., 1925-04-28
Churchill Says Credit viii Be
Arranged for $500, 900, 900,
But May Not Be Used.
DEBT-PAYMENT POLICY
HELD MOST IMPORTANT
Treasury Here Calls Decision Next
in Importance to Dawes
Plan Adoption.
~ the Assoclated Press.


LONDON, April 2S.-The gold
standard in England will be restored
dating from today by special
license TO the Bank of England to
export gold bullion. it was announced
by Winston Churchill, chancellor of
the exchequer, in his budget speech
in the House of Commons this after
noon.
The banks special license, Mr.
churchill said. would operate from
today pending the formal lapsing on
December 81 next of the 1920 act
prohibiting the export of gold bull
lion.
Mr. Churchill characterized the
yield from internal revenue as sat
isfsctory."
Expects Loan i'm L. s.
Excess profits and corporation
profit taxes showed a deficit OF
F9. 600 900 sterling, bt these were
"'moribund" taxes and We're more
than counterbalanced by the yield
from income tax, super and death
taxes.
The consuming power of the Brit
ish people has been maintained, de-
clared Mr.. Churchill.
plus of the late chanCellor's estimate
corresponded with remarkable ac-
euracy to the budgets revenue from
spirits. Tobacco had fallen f2,000,OOO
sterling below the last budget est-
mate, but, on the other hand, beer
had advanced by a million sterling.
Mr.. Churchill said he was making
arrangements to obtain credits In
the United States for not less than
-,,l hi yJNl cIn m
Might Not Use Credits.
The American credits being ar
ranged for, Mr.. Churchill said. would
only be used if and when required,
and he did not expect that II would
be necessary TO use them.
With regard to the re-estaohsh-
ment of the gold standard, Mr..
churchill said he would introduce a
measure providing that internal treas
ury notes as we'll as Bank of England
notes would be convertible into coin,
but only at the option OF the Bank
of England
The re-establishment of the gold
standard he said, did not necessarily
mean a return TO gold coinage.
Churchill appealed to all branches of
the people to continue the use Of
notes.
simultaneously with these provi-
sions, he said, the Bank of England
would be obligated to sell gold bullion
in amounts not less than 400 fine
ounces in exchange for legal tender at
a fixed price of f3 lis 10l2d per
standard ounce.
Backs Debt Payment.
The accumulated gold reserve was
f153 900, 900 sterling, part of which
was in dollars, to the amount of
s166, ,000. 900. the chancellor an
nounced. This dollar reserve, he said,
would be required for the June and
December American debt funding.
The interest on the British national
debt, Churchill announced, has been
reduced since 1920 by more than
10000. 900. 1t was most important.
he said, that the policy of debt repay
ment should continue.
The nominal dead weight charge of
the debt had decreased from $780,
100000 on March 81, 1924, to
Churchill said he proposed to
raise the sinking fund to the statu-
tory limit.
The total expenditure of the budget
churchill estimated at 1894 900
sterling, which is 9,40O. 900 sterling
more than last years budget pro-
vided. This the chancellor termed as
"a very disappointing result"
Mr.. Churchill proposed the re-
imposition of McKenna duties upon
imported luXuries.
Counts on Preparations.
Churchill estimated the revenue for
the current year upon the existing
basis of taxation at 1926 600 900. He
estimated there would be a surplus of
f26 ,000, 900 on the present basis of tax
alton.
While counting upon $500, 900 from
German repara tions, Churchill said he
was not budgeting any repayments
Of allied debts to England, which, he
said if they should be made would
come as additional relief
Among the measures for raising
new revenues Churchill announced
slight additions in death duties on es
tates of more than fh2,500 and GER
tain duties on natural and artificial
silk with basic duty of As. per pound
on raw silk. Makeup silk will be
taxed on an ad valorem basis. The
reimposed McKenna duties will be ef
fectiye July l, Mr.. Churchill an
nounced.
Other Revenue Sources.
The additional death duties and
InOSe OH SlIh are 6ADtClcu TO DGlnR III
an additional $4,000 ,O00 in revenues
the chancellor said.
Another new duty is one of 4 per
cent on hops. 1t is limited to four
years and is expected to bring in
about $3.50, 900 900 annually.
comprehensive compulsory con
tributory scheme of insurance bene
fits for the wage-earning population
OF Great Britain was announced as g
part of the Churchill budget.
Sugar on Preference List.
The chancellor announced that
sugar would be restored to the list
of commodities under the imperial
preference plan. Preference would
also be applied to dried fruits and
heavy and sparkling wines.
The standard rate of the income tan
will be reduced by 6 pence in the
bound sterling, Mr.. Churchill announc
hd.
The imperial preference on tobacco
Rvill be increased from one-sixth of the
full duty to onefourth.
The chancellor preceded his state
ment of changes in the imperial pref
erence list by announcing that the
government proposed to give the ef
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