BRITISH POLITICS.

Taranaki Daily News, Volume LII, Issue 60, 5 April 1909, Page 2

BRITISH POLITICS.

CABLE NEWS

(J3y Cable.—Press Association.—Cony right.j

TAUIFE REFORM ALTERNATIVE. Received 1, J. 15 p.m. London, April :i. Mr. Keir Hardie, speaking nt Reading, said the Labor I'arty's alternative to tariff reform was u 10 per cent, lax on incomes exceeding £2OOO a year.

A BYE-ELECTION. Received 4, 4.15 p.m. London, April 3. Mr. E. G. Hemmerde has been re-elec-ted for East Denbighshire by 2722 of a majority. Tim election was necessitated by hit; appointment to a Rccordcrship.

LICENSING LEG I SLATioN. Received 4, 4.15 p.m. London, April 4. Mr. Charles Roberts' Kill to close public houses on election days was read a second time by 1!IU votes to 40.

A CHANCELLOR'S DILEMMA. London, February 12. Inopportune indeed wa, the period the South Australian Treasurer selected lor broaching his' suggestion for Imperial guarantees for colonial loans. Mr. Lloyd-George, the Chancellor of the Exchequer, is certainly not at the present time in a position to consider any proposal which lends, even only theoretically, to increa-e the financial obligations of flic Home Government, lie is, indeed, in a most unhappy position, and is I'aee to face with the most serious crisis that has arisen since the Liberal party came into power. The problem Mr. Lloyd-George ha* to solve is how to obtain' nearly £l!l,000,000 in fresh taxation from an already overtaxed country.

Mr. Lloyd-George's Budget of last April allowed for a decrease in the national revenue of £3,458,01)0, and for an increase in expeiliture of £1,405,000, but tlie decrease in revenue has been very much larger than was anticipated, and the delieit is likely to exceed £5,000,000. Then, if the Government carries out the pledge given to the House oi Commons .to bring the Navy up to the twoPower and a 10 per cent, margin standard., at least £11,000,000 additional must be spent next year on the first line of defence. Again, instead of £li,00«,000, the estimated cost of Old Age Pensions next year, rather more than eight million pounds will lip required. Of this £1,200,000 is arranged for on the present basis of taxation, leaving £0,800,000 to be found. On top of this Mr. LloydGeorge has to provide for the normal increase of national expenditure, which amounts to about a million a year. Altogether, therefore, the Chancellor has to find nearly nineteen milious more than the amount he arranged to find in last year's Budget. The question that is being asked <y.\ all sides is: "How will lie do it?" It is suggested that he will impose a 5 per cent, tax on the annual value of land which would bring in about £3,500,000, a super-tax of Od in the £ on incomes oi £SOOO and over, which would produce £3,000,000, and increase the licensing duties to net an extra £2,000,000. Even so there would still remain ten millions to he obtain'd from other sources. A rc-impositiou 0 f the tea duty current during the v.-ar would bring in nearly three million pounds, and if he put 'back the farthing on the sugar duty he might mice nearly 3>,i. millions, leaving another .');.:, million pounds to be discovered elsewhere. A re-imposition of the corn-tax and the export coal duty would just about cover this amount.

Two other courses aw open to the Chancellor—a raid on the Sinking Fund or a loan. These expedients are, however, not likely to commend themselves to the Government, and the adoption of cither course would be very bad for tli 0 national credit, which is at present none too good, judged by the current price of Consols, viz., 84. 'Moreover, the trouble with which Mr. Lloyd-Gcorgc is faced ia not owing to a mere temporary increase in the national burdens. The taxpayer can Jiardly hope for any appreciable relief through lessened expenditure on naval and military affairs in the iiituro, and old age pensions will certainly require more money each year for many years to come.