The Dominion. MONDAY, AUGUST 23, 1909. THE BRITISH BUDGET.

Dominion, Volume 2, Issue 593, 23 August 1909, Page 6

The Dominion. MONDAY, AUGUST 23, 1909. THE BRITISH BUDGET.

r The extraordinarily-pTotractcd discussion of the British Budget—which our leaders may rely upon hearing about for some weeks to come—is apparently riot strengthening the opposition to the Government's proposals. As tho days pass the public, lapsing into something very like indifference, and utterly weary of ~ the repetitions of tho now long-familiar 5,' arguments of both sides, are probably realising that tho now taxation proposals are not immediately revolutionary, even if in some particulars they are quite obviously injurious. Timo is fighting stcad- - ily for tho Government.. Thqrc is much significance in- tho unexpected turn taken by tho remarkable meeting held in Manchester last week by the Budget Pro- '• test League, which was wound up by an enthusiastic demonstration in favour of the Government's proposals. Of tho m ultimate possugo ol tho Budget by too \

House of Commons there ie not tho least doubt. Tho Government's majority is onormous on every division, and tho Liberal "cave" that caused such a stir a couplo of months ago seems to have disappeared altogether, tho process of disappearance having undoubtedly been hastened by tho Government's willingness to grant concessions here and thero in the land clauses, which have occupied so many weeks of interesting talk. The Chancellor of tho Exchequer has played his cards extremely well. - He set out with a full knowledge of what he wanted,' and adopted the wiee dovice of asking more: than he expected to get. Somevof his concessions, however, wore of a kind that might have been, expected to persuade, the public that'thcrc aro a good niany noxious things in : tho Bill upon which concessions will not bo made. Mn. Lloyd-George has compromised, that is to say, ~not merely by splitting numerical differences, but by abandoning actual principles. For example,"lie stoutly defended tho provision that there should ,be no,appeal to.a Court against the valuations of the Government's \ referee. But, as we noted a'few days ago, ho was ovorborno by the weight'.of the protest which came from both sides of tho'House. He was deaf for a long time to tho protests .against the outrageous, proposal that "ungotten". minerals should be taxed; but he has abandoned this extraordinary principle. ■ . : .[.'■<_ ,

'■; There: is, really matter for astonish-, ment in. the number of clear-cut principles which the Chancellor has cut out of his Budget without making it any less unattractive ; to its opponents. This is a new, thing in British politics. We hayb noted two' cases in which. dangerous i.innovations havo been : withdrawn, but there are others. The original proposal was that at oa'ch change-Of ownership of land the.; State should confiscate 20 per cent, of the increment.; It was pointed out that land which fetched at one : salo'might bring, in £800 af the ! next sale, arid then change hands again at:i £900,; The injustice of regarding the * second "rise",of £100 as a positive rise has led the' Goyernmont to provide for a datum line,; recoveries from a fall below which will be'exempt from the increment tax. The '.. most important, of ■ all the concessions, however,: has been the exemption of small holdings from the , increment 'tax. The only argument £yer advanced in support, of this tax is the.plea thkt the rise in land values is due to;'tli6 community. If that wero a sound plea,, there should obviously be no exemptions at ( all. No satisfactory reply has!, been : given 'to;| the : counter plea that all increment^ ; ,of. value are due to'.the growth of'popiila- j tion. When Me. .'.BALFOtrK , used. this argument, ,the. Liberals -retorted that he; was a Socialist. But, as the SpedalQr points putj,such a retort: and ,for this■ excellent; reason:. "The l ,cominuiY, ity, .'having the! power, can take any pro-i perty which,it. desires.to. take, but it is foolish to /do :so, because .exporienco shows that the institution of private property as the greatest, of ,' stimulants ,'toeconomic progress and individual 'liberty;, and happiness—tho object-for whichedm.munities. aro organised."-;,','..Thero ; have beon•'; man*/;; concessions which;,have aniounted .to the abandonment :of : principle, as the exemption ; of. agri cul-tural-land from thel reversion*.duties, and the softening of the blow of tho duty on undeveloped>' by. oxempting" land voii: -which, £100 • an aero has, been' spent , ' : for' Idpvolopmontal^purposes} .but. .thtf-;-hot Jtotal. of all tho concessions has, not /weakened the 'dislike * with .which thqv new taxes are. very widely regarded.; Although :the":taxes\were introduced 'on the ground'that they were purely'financial, in character' and , intention, it soon'became apparent; and Mr; * Lmvd.-Geo&gk openly; admitted' a, few-days agoj that they are based on a new land doctrine; 'namely-; , that land is not for.enjoyment;" but for' stewardship. This, it need hardly bo. pointed out, sets the-Government's fdefc on, the. high road to land nationalisation,;- ." * -. ; .*.■.•"'.'' ■ '...,-■' '~'■ '■.:■'.■■ *

v'-Thqre is much: doubt : as.to tho course which tho' Houso of Lords -will- adopt; Lord : Lansdowne has on: mbre than one occasion declared that' tho Peers Will not 'shallow the Bill without: wincing,, and his language has plainly meant that he 'will do his. best'to secure.that the peo-' plo shall express their oninion before the Budget is accepted. .; 'At' the -same time the 'opponents, df' v the Bill are' by'no ; means'unanimous in'.calling on the Lords lo declare.war. The Times, for example, has-been persistently urging , the Lords cannot amend the Bill:' they inust either.accept it or .reject it in toto. :'As lo.'rejection, The.Times considers that it is a /measure "needing very: ample jus- , tificatiori," The practical consequences of 'rejection are of course very '.serious.; As i the;late Lord, Salisbury, put 'it in 1894: "Thia Houso'has not the'power ■'of changing/the .Executive Government; and to,reject a Finance Bill:and leave, the/Executive Government in its .place means to create a deadlock from which ■ there is no escape." The Lords can onlyguess' whether public! opinion is for or. against the new land .taxes, and it is highly probable! that they will decline .to ; take ; the responsibility.of assuming that the popular voice would say "Yes" if the could be put. The Government's proposals willlcad to' changes of such vast magnitude' in British' politics; in/national 1 finance, and in British agriculture, that the >casb for a national vote upon them is overwhelming. : -