The Daily News. FRIDAY, MAY 5, 1922. BRITAIN’S PURSE.

Taranaki Daily News, 5 May 1922, Page 4

The Daily News. FRIDAY, MAY 5, 1922. BRITAIN’S PURSE.

Had the citizens of the Empire not become accustomed to the vast sums representing the revenue and expenditure of the Imperial Government, it would not be so easy for them to comprehend the magnitude of the British taxpayers’ burdens. Exceptional interest centres on the Budget which Sir Robert Horne (Chancellor of the Exchequer) has just submitted to the House of Commons. Firstly, because it deals with a year in the first quarter of which the greatest industrial trouble that the Motherland has ever known swept over the country, leaving in its trail a serious problem of unemployment, which greatly added to the national expenditure, also a considerable loss of revenue, both factors having an adverse effect on the national purse. “That we have met these distresses without worse calamities,” remarked Sir Robert Home, “testified eloquently to the country’s soundness and the soundness of its financial position.” In view of the fact that the year’s income was ninety-one millions below the estimate, this tribute to the nation’s capacity for rising above all troubles is modest and irrefutable, emphasised, moreover, by the. fact that money has now become so plentiful that the bank rate has been reduced to the figure at which it stood on the eve of the declaration of war. Notwithstanding this great 16ss of revenue, it sufficed not only to meet expenditure, but also to leave over forty-five and a half millions for debt redemption. More remarkable still is the fact that during last year the countr'y’s internal debt was reduced by two hundred and forty-six million sterling. Such great achievements are certainly conclusive proof of Britain’s immeasurable capacity for sacrifices, especially when the country’s honor and prestige are at stake. This is convincingly demonstrated by the expenditure side of the nation’s balance sheets during the present century, the lowest being for the year 19061-7 (£149,637,664). rising steadily till 1910-11, when there was a jump of fourteen millions, and reaching 197 J- millions in 1913-14. Then came the war expenses, which raised tile total year by year Until it reached 2696 J millions in 1917-18. The Stage of paying out thousands of millions has now been passed, for the expenditure during the ensuing year is estimated at only 910 millions. Having passed the top of the financial hill it has been deemed wise to pause for a short period to take breath, to ease and readjust the burdens, besides gathering strength by stimulating trade.' This calling a halt may not satisfy some of the spectators, but it is the natural corollary of reducing the national expenditure otherwise there would be no appreciable benefit in the operatioq. What Britain has already accomplished in the direction of debt redemption has borne fruit in the improved value qf the pound sterling, and no reasonable person can deny that the taxpayers have earned the right to a first instalment of relief. The Chancellor of the Exchequer evidently sees the way clear to take off a shilling of the basic rate of income tax, to reduce the duty on tea by fourpenee (involving remissions on coffee, cocoa and chicory), besides reducing the basis for assessment of agricultural lands. By stimulating trade, not only will the unemployment evil be partially mitigated, but British manufacturers and exporters will have an opportunity to compete successfully against foreign rivals and thus swell the national revenue. Looking at all the circumstances iu a broad spirit, it would seem that the Budget has been wisely and well conceived, and that the suspension of the sinking fund will materially assist in improving the country’s prosperity, a result that is sincerely to be desired. It will doubtless be remembered that Britain’s war Budget of 1918 was a taxing budget, the chief features of which were aa iucjrease-fif Jax

to six shillings in the £, the doubling of the farmers’ tax, the raising of the super-tax to four shillings and sixpence in the £, the doubling of the beer and spirit duties, the raising of the tobacco ' and match duties, a higher duty ou sugar, a twopenny stamp on cheques, and the increase of postage rates. That some relief should now be given is only right and just, nor can the retention of the heavy tax on beer be reasonably decried. It may even be a matter of thankfulness that, it has not been taxed out of existence. The people certainly deserve relief from their direct burdens, but the most pleasing feature of the Budget is the indication it affords of the country’s marvellous recovery from intense financial pressure and the impetus given to trade development. At this time next year the Motherland will, it is to be hoped, not only have a large sur plus, but conditions will have so improved that attainment of normality will, if not actually reached, be close at hand. The prosperity of Britain means a great deal to the Dominions, hence more than usual interest will be taken in Home financial and industrial affairs during the year. There never was a Budget yet.that satisfied all sections of the community, but Sir Robert Horne may be congratulated on having adopted the right steps to be of most service to his country’s advancement. The outstanding fact is that Britain has turned the corner, and can now set forth on a smoother and more economical road.