Evening star., 1928-03-26
BRITISH SURPLUS
OVER S5O,oIOl,OlO.
Budget for Coming Year by
Churchill First in Years
Without Deficit.
By Cable e The star and the Chicsso Daily
News CopvrlEhf l0oS

BY Cable to The Star and the Chicago Daily
News. CopvrlEht. 1925
LONDON, March 26-Early next
week Winston Churchhill. chancellor OF
the excheQuer. will submit 10 the House
Of Commons the budget for the coming
year, which. according TO his friends,
VIII vindicate his name as finance di-
rector by showing 4 surplus Of more
than $50 600 600 This is The first time
IN three years that the British treasury
does not forecast ending The year with
O substantial deficit.
England'S economic recovery has sur
prised even the optimistS, Since last
October the situation has been improv-
ing by leaps and bounds. The stock
exchange, which had been very quiet
since the general strike. suddenly be-
came extremely active. The shares Of
reliable companies, which for years
never moved more than . or points
became buoyant. while since the first Of
January many new companies have
foate6 new issues weekly. all finding
eager subscribers
Stocks All OvcrSubscribcd.
Not one Of the new stocks Of financial
O. industrial concerns has failed to be
cveTSubScribed three or four times with
f. e few hours Of its issue.
II is true that EnG,apds staple indus
tries. such as cotton. steel manufactures
and coal. still are in very bad shape
and are almost completely neglected by
investors, who are dissatisfied with the
antiQuated methods Of exploitation and
refuse 70 invest money IN them. On the
other hand. new industries such as arti-
fetal silk. motor cars, graphOphones
If,e ~ motion mixtures arc rprpfNInC
great encouragement from the investing
public.
Most Of the new industries are issu-
FMS IS cent shares thus enabling the
humoleSt mvetSor 10 take a small "fut-
ter" The fact that practically all OF
these shares increased four or I'VE
times in value within a few weeks is
encouraging small investors, who prefer
now 70 place their small savings in
constructive work rather than gamble
or race horses.
Not Spectacular Budget
Chancellor Churchill's new budget /
viii not be spectacular He intends 70 !
encourage industries which show i'm |
mediate profits. In order 10 enable |
the motor car industry to expand. the /
horse power tax will be replaced by |
gasol5nee tax In England automobile /
owners must pay tax OF So per horse /
power: consequently the owner Of the 1
small car has q pay at least /
$50 a year.
BY replacing the horsepower tax |
with a gasoline tax many people will I
be able 10 afford a car. since they will |
paw the government the tax by small /
1nstallments. A few cents will be added /
70 the price Of petrol which, thanks to |
the oil war between British and Ameri- |
can oil companies. is lower than it has |
been ever before in the United King |
dom.
The revenue Of the treasury viii mean |
time increase. since the commercial We |
hicles, such as buses and motor lorries, |
which are used in England more eX- |
than anywhere else, viii pay I
more now, as gasoline consumption is /
higher. Under present regulations /
these vehicles pay a maximum Of 5000 4
3 year, while each Of them consumes /
hundreds Of gallons Of gasoline weekly. /
small tax on graphophOne records I
Is also contemplated. II is estimated
that not less than 1000 records are
sold weekly IN England and that the
public could easily bear q slight increase
IN the price Of the records, which al
present average 81 each.