THE BUDGET SURPLUS.

Dominion, Volume 5, Issue 1440, 15 May 1912, Page 7

THE BUDGET SURPLUS.

I OBJECTIONS TO DIVERSION. J By Teleeraiili—Press Associatton-ConyriEht (R«c. May. 14, 11.50 p.m.) l London, May U. A meeting of Radical members of the House of Commons disapproved the diversion of the surplus from the redemption of the National Debt to the Navy or otherwise. THE RESERVED SURPLUS. The surplus announced by the Chancellor of tho Exchequer was .£6,45f1,000, but a quarter of this amount was money that was not spent by the Admiralty owing to delays caused by strikes. With respect to the Chancellor's proposal to hold the surplus, the "Daily Chronicle" had the folii'wing:—Tho remaining JE3.077.000 is in n different category. It is one of tho most venerated rules of English finance that it should bo earmarked to pay cif national debt. In view of its unprecedented size and of the contingencies in connection with tlio National Insurance .Act, one expected that a part of it might bo withheld. "Raids on the Sinking Fund" have been made before. But what the Chancellor does this year goes further. lie impounds the whole surplus. True, he does so only against contingencies, and he left open the possibility that some or all of it would survive to the end, of the year, to be applied, perhaps, thoii instead of now to tho reduction of debt. Nobody, however, can expect with much confidence that that irill happen, at least on any considerable scale, nor can anyone ignore the seriousness of tho precedent that will bo created. To meet expenditure from money \yhich should havo been used to meet debt is a course which might become fatally common were criticism of it relaxed.