Labor's Budget

Snowden. A highly expectant House of Commons assembled to hear Philip Snowden, Chancellor of the Exchequer, detail the budget for the financial year 1924-25--

Philip Snowden, the "ascetic, intellectual type of burning enthusiast," "a frail figure of a man who walks with a stick,"-- "the man with a hatchet face and small burning eyes sunk deep beneath a projecting brow," the man whose caustic sarcasm has caused his opponents to wither, was known to be a Socialist. Only last Summer he introduced a bill to suppress the capitalist system (TIME, July 23). Small wonder, then, that Socialism was the thought uppermost in the minds of the assembled M.P.'s when Philip Snowden appeared on the Treasury Bench.

The Budget. Mr. Snowden's budget was singularly free from any Socialistic implications. Said the Chancellor: "This is the best I have been able to do in the few weeks we have been in office. I think we can confidently hope for the support of the majority of the House in carrying these proposals into law. They go far to realize the cherished radical idea of a free breakfast table. They give benefit to every man, woman and child in the country. . . "

I have distributed the relief available in a way which will give the greatest benefit 'to the greatest number, and which by increasing the purchasing power of the people will stimulate trade and industry, and I have kept in mind always the vital importance of maintaining the national credit, on which the very existence of the country depends." "Hear, hear!" interjected Austen Chamberlain, twice Conservative Chancellor of the Exchequer (1903-06, 1919-21).

The budget abolishes, from Aug. 1, the 33 1/3% duty levied by Chancellor McKenna during the War upon foreign automobiles, films, motorcycles, clocks and musical instruments. The so-called breakfast taxes on sugar, tea, coffee, cocoa, chicory are cut by one-half to one-third. The tariff on dried fruits will be dropped on Aug. 1. The inhabited house duty is to be repealed. Amusement taxes are abolished for the cheaper seats in theatres, etc., and reduced for the more expensive seats. The corporation profits tax is to be abolished.

Many points were touched upon by Mr. Snowden in what all parties have termed a clear, concise speech, ably delivered. Chief of such points: "

No tariff." "We on this side of the House, though not for a single moment admitting that we are one whit behind the honorable gentlemen opposite in our desire to promote the best interests of the Empire, have never believed the interests of the Empire could best be served in the long run by a system of tariffs, and we have repeatedly expressed these views in the House and country. In these circumstances the Government are unable to endorse the proposals of their predecessors. We greatly regret any disappointment and inconvenience that may be caused to the dominions and colonies, but for that, not this Government, but the late Government, must bear the responsibility. . . ." Debt Reduction. The only external War debt owing is to the U.S.; those contracted in Argentina, Canada, Holland, Japan, Norway, Spain, Sweden, Switzerland, Uruguay have been paid. Internal debt has been reduced by about $1,740,000,000 since 1919. On both external and internal debts the reduction has been about $2,827,500,000, the effect of which has been to reduce the country's annual debt interest charge by about $174,000,000. Widow's Mite. The Chancellor stated that he had received a letter enclosing about 40 cents from a poor widow who admitted having stolen a can of condensed milk from an army canteen during the War. Said the Chancellor: "The recording angel, in registering that woman's crime, would drop a tear on the page and blot it out forever." Congratulations. The effect of the Snowden speech upon the House was remarkable and overflowed all Party boundaries. The Chancellor's speech took him an hour and three-quarters to deliver, and, at the end of that time, he was verging upon collapse and had to be helped to his seat. Deafening cheers marked the close of the speech, cheers which rang from every nook and cranny in the House to acknowledge the Chancellor's great power of exposition. Austen Chamberlain wrote his congratulations on a slip of paper and had it passed to Mr. Snowden who bowed his acknowledgments. Sir Robert Home, another Conservative ex-Chancellor, stated that he had never heard in the course of his Parliamentary experience a clearer or more perspicuous statement on national finance. Ex-Premier Asquith (Liberal) declared the speech to be "a model of clarity," was especially pleased with the free trade feature.

Significance. The Labor Party has made a bid for popularity based to a large extent upon the achievements of their post-War predecessors. When the budget is passed it is sure to become a popular plank in Labor's next election platform and seems likely to strengthen the Party's position.

Meanwhile, many of the Conservatives and most manufacturers see peril in the budget proposals. Certain Conservatives have consistently regarded the McKenna duties as the cornerstone of Imperial preference. Their abolition caused Sir Robert Home to say with all preference Tories, "What! You will give a trade agreement to Russia, but not to Canada, Australia, New Zealand, South Africa or India?" The manufacturers foresee their ruin in the abolition of the tax on automobiles, etc., because American products will now be able to compete on equal terms.

*The financial year in Britain is from April 1 to March 31. --Mr. Snowden was crippled as the result of a bicycle accident.