Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-03
Snowden's Budget Is
Hurt by Discussion
BYNA. G. GARDINER.

LONDON, May 2.-For the moment
Chancellor Snowden'S budget has
eclipsed all topics of public discussion
in England. The first impression wag
favorable because the deficiency Of a.
000, 900 pounds sterling was unexpectedly
small and because the general fear OF q
heavy increase in taxation was most
agreeably disappointed. But the first
impression was speedily obliterated and
the more the budget Is examined and
discussed the more gloomy Is the view
taken of its provisions and implications.
The verdict of the weekly press Is
unanimously unfavorable and Is
summed up in the Weekend Reviews
caption, "Apres Moi lie Deluge" CATER
Me the Deluge'p.
The most disquieting fact on which
comment is made Is that a financial
purist of Snowden's auSterity has re-
fused to face the real problem in the
finances and has gambled on futures or
the most nlusory character in which he
hardly pretends to believe himself. His
estimates of revenue for the present
year, based on the assumption Of re-
vival of trade, of which there Is no
present shadow Of support and which,
even If experienced in the Autumn.
could have no substantial effect on the
revenue of the present year. All indi-
cations given BY corporation returns
foreShadow a declining rather than an
increasing revenue.
Moreover, his failure to make pro-
vision for inevitable heavy supplement-
airy expenditures and his astonishing
omission of all reference to the ap-
palling drain of the dole, which is CAL
culated to swallow up 40, 10000 pounds
sterling in the current year, are mat
tiers Of severe criticism in all the re-
X ~
Nor are his methods of supplying the
anticipated deficiency less severely CEN
sured. Snowden, the most caustic critic
of the raids o. his predecessor, Winston
Churchill, on capital funds, has followed
and made worse the example he repro
bated. BY manipulating the levy of the
income tax he proposes to collect the
impoStS for five quarters within the cur
rent year. leaving gaping void IN the
finance of next years budget, while his
appropriation of 20,000,000 pounds sterl-
ing from the dollar exchange fund in
New York, which exists to guarantee the
American debt, Is denounced as an ex-
ample unprecedented in peace-time OF
raiding capital for purposes Of revenue.
The matter is the more inexplicable
because it Is admitted that the re-
sources of indirect taxation on drink,
tobacco and tea. for example, have not
been exhausted. Indeed, the public
fully anticipated and was prepared for
new taxation.
What is the explanation Of this rake'S
progress? The Saturday Review sar-
donically suggests that he has Sown the
wind in order that his Conservative sue
cessor will reap the whirlwind and that,
like bankrupt tenant, he does not care
what damage he does to the property
from which he Is about to make a mid
night flight. This, of course, is grim
jest. A more probable explanation Is
found in Snowden's determination to
resist tariffs as means OF revenue and
To consolidate the relations of the Labor
government with the Liberal party on q
free trade basis. A considerable pro-
tectionist element in his own party
would have resented further indirect
taxation and preferred tariffs; hence his
avoidance OF these resources.
~ *
The left wing of the Labor pax:S
wants more doles; hence Snowden's in-
excusa6le silence in regard to that Eey3-
Ject. he has thus prevented a rupture
in his own party on tariffs and secured
the enthusiastic support of the Liberals.
who, in order to save the cause of free
trade, are prepared to swallow financial
expedientS calculated to make Glad
stone turn In his grave. The superb
cial success of Snowden's strategy In
complete. BY uniting Labor and Lib
erals. the budget has apparently indefi-
nitely postponed the defeat of the gov
eminent and general election. But
there is force in the criticism that
SnoWden has overshot the mark and
that by his 1mprovident finance he has
done more to increase the prospects of
revenue tariff than any of his protec-
ZIONIST opponents.
(CopyriHht, 1870