The Daily News. THURSDAY, APRIL 13, 1916. BRITAIN'S COMPULSORY ECONOMY.

Taranaki Daily News, 13 April 1916, Page 4

The Daily News. THURSDAY, APRIL 13, 1916. BRITAIN'S COMPULSORY ECONOMY.

A careful examination of the British Budget will certainly repay the student ol economical problems, Apart from the vastness of the figures caused by the necessary provision for war purposes there are several interesting points bearing on social and domestic economy, and though they are not specifically mentioned, it will be found that they are present by implication. la raising sufficient revenue for national purposes, e\ery member of the community has been caljed upon to do his or her share, and the means whereby this is to be accomplished may be regarded as a practical form of compulsory economy. Speaking at the half-yearly meeting of the Union of London Bank early in the year, Sir Felix Schuster remarked: "If a breakdown in t'ho exchanges was to be avoided it could only be by putting a cheek on the imports of anything that was not absolutely essential. Taxation seemed the only means of provid•ing such a check, and on articles of lux-, ury it should be prohibitive, Eu-n if through such measures the coat of living should be temporarily still further increased, such increase would be nothing to what would take place if the exchanges were to move seriously against us. Economy exercised by all classes was not only necessary in the interests of the State, but would be of the greatest benefit to individuals themselves, and would save them from trouble and hardship in the future." It would seem that in framing his Budget Mr. McKenna Ims proceeded along the lines advocated by Sir Felix Schuster. The new taxation proposed is certainly based on the principle of compulsory economy. The income tax is the starting point, commencing with incomes Of £l3l and rising up to those of £3OOI, when the super-tax commences, there being a differentiation between earned incomes and unearned, the latter being more heavily taxed. The tax is one that will limit the spending power of every taxpayer and therefore compel economy. It is significant that the Government is setting the example of economy by reducing the Civil Service Estimates to the extent of over three and a-half millions sterling. The new Customs and Excise taxes o? nearly twenty-two millions should also tend to induce economy, but it is doubtful if the tax on amusement tickets, which is regulated by the price of the ticket itself, will deter many from indulging in amusements, though it implies that during such a great crisis money would be far better saved than u<ed for pleasure. The proposed tax on railway tickets is raising considerable reposition,*, but now that it is an established fact in New Zealand no great hardship is felt. It certainly does not prevent people travelling on pleasure bent, and it emphasises the need for doing without luxuries. It may be thought that a tax of a halfpenny per pound on sugar is a harsh impost, but to a large extent that commodity can be done without, and the present is a very good time to make a commencement of using as little ae possible. The same may be said of cocoa, coffee and chicory, which are to hear a tax of sixpence per 11). The tax on matches is a different matter, and it rlealls the storm of obloquy and derision flung at the late Viscount Shcrbrookc (then Mr. Robert Lowe) when he proposed a match tax many /ears ago. At the same time tl ore is a certain class of matches thai it would bo a boon to tax out of existence. It is a vexed question in these days whether motor-cars and cycles are luxuries or necessities, but the Chancellor, acted wisely in imposing duties according to the engine-power of the machines. He is certainly to be commended for imposing sixty per cent on excess (war) profits, and in extending the tax to the sale of profit-producing assets, such as ships, the profits on which have been enormous. With a national daily expenditure of five millions it behoves every member of the community to practise the strictest economy, anil the new taxation is one of the levers for compelling the people to do so. The British Budget should certainly set the people of New Zealand thinking ot the puny sacrifices they are making towards the cost of the war, and it should bring home to our Government the sorry position in which the Dominion is placed by being a financial drag on the Motherland when it should, by reason of its unprecedented prosperity, be helping to bear the burden.