Show DEATH OFFREE TRADE Signs of a Financial Revolution In England + REVENUE TARIFF TALK t WEALTHY CLASSES NOW BEAR THE BURDEN And They PropoS to Shift It to the Masses Impending Deficit Will Necessitate Some Changes and Capital Objects to An Increase In the Income Tax i F New York larch 11The London correspondent of the TrIbune writes Unless all signs fail there will be Important Im-portant debates on fiscal problems after + + + + + + + + + + + + + + + + + + + i + + + + + + + + + + + ft + + t + + + + + + + + + + + + + + + + + + + + + + F + + UNCLE SAKI HAS AN ELEPHANT ON HIS HANDS + + + + t > + 0 j 0 j io L E 1 t F r i o a w + Vernon Felt of Springville Utah a boy of fifteen years is the artist who drew this cartoon The idea + + was his and he made the drawing complete just as it went to the etchingroom Young Mr Felt is the son + of D P Felt + 4 + + + + + + + + + + + + + + + + + + 1 + + + + + + + + + + + + + + + + + + + 4 + + 4 + + + + + + + + + + 4 the chancellor of the exchequer lays his budget before the commons OnE of thee signs is the ominous warning from Sir Michael HicksBeach tt at the balance of revenue and expenditure expen-diture may be on the wrong side and that measures may be required for meeting a considerable deficit Another straw which shows the direction of the wind Is IIr Morleys protest against th alarming increase of national ex prndltures The most remarkable indication in-dication however of a transition stage iu national finance is the candor of the leading our11al in recommending then the-n mposition of duties which were abel ishcd when free trade was established as the permanent fiscal policy of the i united kingdom That great organ of English opinion has been publishing a series of important articles by an expert ex-pert on the finances of the last two years and It virtually adopts his conclusion con-clusion that the time has come tor rc onsidtrlng and revising the entIre system of taxation in a bold and comprehensive com-prehensive way The method recommended involves arc a-rc turn to principles which Cobden and Bright condemned The points of the argument arc as follows The national e1cndltures have Increased In-creased about 50 per cent during twenty rears and the bull of tlll additional burden has been thrown upon direct taxation whereas indirect taxation has i remained almost unchanged customs and excise being taken together The death duties have been nearly trebled and the Income tax has grown nrODor tlonateJ and all the extraordinary burdens of the state and a steadily increasing in-creasing share of the oralnar burdens have been thrown by direct taxation upon limited class HARD ON CAPITAL These increased direct chlllges now operate as a high tae upon capital and arc detrimental to the interests of the wor tang classes Thy also Involn ei l1austloll ot what was once a great financial retJre It was once easy to meet a fresh emergency by Jutting an extra penny on the tax but it Is no longer practicable to do this since the I f nceC extraordinary resource has been con vrrtcd into the ordinary source of revenue reve-nue under conditions of profound peace The income tax has root been below sixpence six-pence in fifteen years and year after year It has stood at 8 pence The center of gravity tamtioll has been altered by a tremendous increase of direct I charges without any corresponding addition ad-dition to indirect charzes The conclusons from these nrpmises arc courageously drawn by the Times It wlll he thc act of a weak government if the probable deficit of the treasury be met by adding another penny to the income tax or by the feeble ewedlcnl of a suspension of the sinking fund It 15 dangerous to depend continuously upon direct taxation for carrYing extraordinary ex-traordinary burdens md It Is hardly less perilous to restrict the list of chargeable commodities for Indirect taxation by reimposing the shllllnr duty on wheat and that of a aenny duty on sugar and also to renounce the idea that a free breakfast table is a sacred British nrivllege The Times doubts If the Dresent chancellor or oia < of the exchequer is likely to propose these radical changes yet It is convinced cOn-vInced that If some meaSures of the kind arc not adopted England will find itself conflopted with far more serious financial problems in the immediate future 1t is needless to add that the chancellor of the exchecuer who ventures ven-tures to propose duties on wheat and sugar will be charged with treason to free trade Duties on wheat and sugar Ylll be the enterIng wedge for a policy of indirect taxation which free traders have been describing for half a century aS ruinous to protectionist America The chancellor of the excheQuer is not likelytoexpose himself to destructive criticism from the Liberal benches by proposing so radical a change In the financial system as the abandonment of English free trade There will be a budget speech with temporary expel tents and small makeshifts and the chancellor of the exchequer wlll wriggle i out of his deficit by suspending the new I sinking fund and reimDoslng the to ic000 duty whIch was reduced last year yearDOWNFALL DOWNFALL OF FREE TRADE Nevertheless It Is a fact of deep significance that a Dowerful journal like the Times which not only understands but also directs the forces of English opinion should be advising a return to corn laws and sugar duties It Is an unanswerable proof that free trade has ceased to be regarded wIth supersti I ticus awe as an economic fetich The unceasing strain of increasing expenditures I expen-ditures in time of peace is forcing candid can-did experts to admit that no reserve IOf i taxation are available under free trade for a period of war and that whenever a great campaign comes on I the door will be opened for a protect hc tariff When the Times is willing to consider i fe fiS J the expediency of levying J duties on I wheat and sugar there Is no reasons reason-s to doubt that there are powerful interests I inter-ests in the country which are prepared to sanction this policy in the face of impassioned im-passioned declamation in favor of free I trade and the traditions of CoiJdenlsm A duty en wheat would be regarded by agricultural England as a genuine re Hef measure for the protracted depression depres-sion which has prevailed without interruption in-terruption since the adoption of free trade A duty on sugar would enable the colonial office to make reciprocity arrangements with West and East Indian In-dian colonies which would remove the existing reproach that the United States government by reason of countervailing coun-tervailing duties on bounty fed imports im-ports is now treating British planters more just than the home government itself Is dealing with them The foundations foun-dations for an important zol1verein would be laid by duties of this nature on the lines proposed by Mr Chamberlain Chamber-lain three years ago and the cause of Imperial federation would be promoted by businesslike methods Instead of being be-ing advocated as a vagary of loyal sen timenta beautiful dream The liberals however would have an Issue of inestimable value to them if the government were to commit itself to duties on wheat and sugar The antagonistic an-tagonistic sections of the part could unite In opposition to the proposed duties du-ties on food and they would have a rallying cry for campaigning an1png the masses Sir Edward Gre3 has already raised the issue of government extravagance extrav-agance as one on which distracted demoralized I I de-moralized liberals can stand shoulder to shoulder and Lord Rcseberys forgotten forgot-ten taunt of three years ago You are spending money with both hands In a time of profound neace has been revived re-vived with dramatic effect |