July 29.
In face, of the deficit in the Government's Customs receipts, the decision to retain the surtaxes, now no longer required for the purpose of their imposition which indeed was originally intended to come to an end in July, is not surprising. The device of retaining the surtaxes is distasteful. It seems to ignore ithe fact that those imposts were made for the specific phil tropic purpose of flood relief on behalf of which public sympathy had been aroused. Their retention suggests a jeynical disregard of that sympathy' to its possible alienation in the future. It may be objected that additional duties would be necessary in any case; but in these matters solicitude for formal observance of undertakings given is eminently de So many factors tending to reduce imports are at work be|iust now that the actual working of the law of diminished returns cannot be certainly established. It may be asserted, however, with some confidence, that it is not very far off and, apart from the surtaxes, the limit lof the Government's ability to look to increased customs duties jas @ means of raising further Yevenue must be almost in fight. Mr. T. V. Soong, who. recently, had to resort.to the resignation gesture to impress on his colleagues the need for stringent -retremchment, [takes a serious view of the situation. He is justified. In asses.
ing the situation he naturally Nays stress on the consequences of Japanese aggression here and in Manchuria. Few politicians in making a financial statement in such circumstances would avoid [the temptation thus to seize hold lof current controversy to convey the public mind a picture of the Government's current finan-st- cial, difficulties.
Yet Mr. Soong cloarly- indicates his kn {pat Japanese responsi ity is ce published yesterday he cone mites, In his statement
cluded by. attributing—the [Customs crisis to the ineréasingly serious repercussion of the
Text read from the printed page and cleaned; old type leaves the occasional error.