Tt was by no means an enviable position in which Mr. Chamberlain ils was placed. For the first time for many years a Aeficit on ordinary income and expenditure had to be acknowledged and met. Last year's expenditure exceeded the income by close upon 5} million pounds; and the estimates for the year upon which we have just entered gave promise, on the present basis of taxation, of a deficit of nearly four millions. The City had shown itself stron, to @ suspension of the Sinidog Fund, ly opposed
even supposing that Mr.. Austen hamberlain had been disposed to adopt this course.
He decided therefore to meet the realised deficit by appropriating a short loan of three millions which has just been repaid by the Transvael, million pounds'worth of unclaimed di dands, and a million and a-half of accumulated balances in the exchequer. The existence of these sums may be traced directly or indirectly to the fact that the loans raised for the war wore rather in excess of the requirements, and properly the greater part ought to be appropriated to the Sinking Fund; but it is only to this problematical extent that the Sinking Fund is interfered with. To mest the promised deficit Mr. Austen Chamberlain adds @ penny to the income tax, twopence a pound to the duty on toa, and increases the taxes on cigars, cigarettes, and some kinds of tobacco. The increase of the income tax coa hardly be reconciled with a recent pronouncement of the Finance Minister as to what this tax should be in times of peace; but he can fairly claim that his hands'are tied by Mr. Balfour's fiscal promises. Of course the tobacco trade vows that it is ruined; and there is a fierce outcry in India about the tea duty.
The Licensing Bill.
Ritual.
On the Ritual Question the ' Protestants" declare that the constitution of the Royal Commission proves that the object of the Government is simply to shelve the question; and whether that is the intention or not that will probably be the effect. To the complaint that the "Protestants" were not represented on the commission Mr. Balfour replied that every member of it is a Protestant. It was a fair retort though it may fairly be replied that the extreme section of the High Church party repudiate the name of Protestant. However, if the ultra-Protestants are not represented on the body over which Sir Michael Hicks-Beach will preside neither are the extremists on the other side—-men of the type of Lord Halifax. Moreover Mr. Balfour frankly declares that his aim is not to rake up and emphasise doctrinal differences, but to deal with actual breaches of the law by clergymen in their services. There is something to said for the objection raised by some nonconformists that the Commission consists entirely of professed churchmen. So long as the church is " established," they urge, it is in a senso the church of the whole nation and the church of every member of that nation, whatever his religious views.
Text read from the printed page and cleaned; old type leaves the occasional error.