2)
BRITAIN'S BUDGET.
THE CHANCELLOR'S REVIEW.
NATION RICHER THAN A YEAR AGO.
5 PER CENT, TAX ON BETTING PROPOSED.
[THROUGH REUTER'S AGENCY.]
LONDON, April 26th.
PROVIDING FOR DEFICIT.
THE
{
HONGKONG DULY ·PRESS, WEDNESDAY, APRIL 2818
BOMBASTIC OUTBURST. BLACKSHIRT CHIEF'S REMARKS
AT MILAN:
MILAN, April 7th,
INDIAN RIOTING. DISORDERLY ROUGHS BEING
ROUNDED UP BY POLICE. ·
CALCUTTA, April 26th.
In torrential rain, more than 30,cove Mohammedans and one Hindu Fascists assembled in the Cathedral were stabbed to death in the streets to Square last night to pay homage to day, whilst two of the men injured yea Signor Mussolini, who received a mest terday have since died. A Hindu was enthusiastic evation, Mussolini appear killed last night at Kidderpore.
The majority of the men at present ed on a balcony surrounded by the focal]
in hospital are Mohamedana notables,
the native Practically all shops in quarters have been closed. There was a general round-up of roughs this morning.! and fifty-eight, the majority being Mohammedans were arrested in the Kidderpore, district.
Referring to the dawnpour he remark-
I believe you would stand with the same impassivity under fire." and concluded with "Bullets pass, O Black This shirts and Mussolini remains." was received with deafening cheers.
This Budget speech in the House of Mr. Churchill announced without pre- Commons, Mr. Winston Churchill, rejudice to the impending debt settlement, gretted that the Customs and Excise had that 31. Peret had undertaken to payed: - fallen short of the estimate by £1,000,000 £4,000,000 in the coming year. Mr. * The nation was richer than a year ago, Churchill, amid cheers, paid tribute to but, while the general trade was steadily this proof of French determination and improving, and immortant sections were financial power to strengthen the predit most prosperous with large profite being of France by proper regulation of her He declared that henve- made in rubler, tin and basic industries, external deist.
the gentry was mostly obstinately de pressed. The picture was not black, nor gray; it was piebald, with the dark patches less prominent than last year.
forth one-third of the motor taxes would go to general revenue instead of to the special road fund. This, together with Dew taxation, would produce 2,000,00
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SOVIET POLITICS. EXECUTIVE COMMITTEE APPROVE GOVERNMENT'S FOREIGN POLICY.
Moscow, April 7th.
The Soviet, Central Executive Com. The estimate for Inland Revenge was none of which would be devoted to the remitter concluded the fortnight's Session £1,000,000 short, and Income Tax was mission of taxation, but, after wiping by unanimously adopting a resolution on M. Litvinoff's report fully, approving the £2,500,000 under the estimate, but this out the originally anticipated deficit of was partially offset by improvement" in £7,941,000 mentioned above £10,000,000 Government's foreign policy, and they a law reforming agricul. stamps revenue. The most striking would be allocated to the Sinking Fund. also adopted
tural taxation, and the ratification of that Death Duties were which this year would be £60,000,000 13 helow and the Super-tax compared with £30,000,000 orinally the Soviet budget which showed estimated revenue" 4,302,000,000 roubles. being an in. £3,250,000 above the estimate. The iu The remaining £4,000,000 had been ear-
crease of 31,000 compared with the crense in Super-tax' was due to stricte marked for contingencies, including the
original estimates, the estimated expen. coal settlement. and more efficient collection.
disure 3,922,000,000 roubles being an in- Crease of 20,000.
feature
£3,250,000
was
REDUCING NATIONAL DEBT.
He foreshadowed that in the event of Prolonged industrial paralysis, he would be compelled to recommend suitautini direct and indirect taxation, but that apart from unforeseen events he could see the way fairly clearly to finanes the
next two years.
[BRITISH WIRELESS SERVICE] MOTORS AND ROADS.
Rugs, April 26th.
**
RUSSO-GERMAN TREATY. BOTH COUNTRIES DETERMINE TO MAINTAIN PEACE.
BERLIN. April 26th.
The text of the Russo-German Treaty has been issued It consists of our Articles, and begins by "stating that both
The annual, non-taxable revenue had inerensed by £13,000,000
over
the estimates, and there would have been a net surplus over all the increases in expenditure of nearly £8,000,000 but for the coal subsidy, which alone was rea ponsible for the deficit of £14,000,000. Mr. Churchill emphasised the remarkable achievement of debt reduction, the total! diminution in which in the past six years In the course of his speech Mr. Win-countries will do everything" towards had been £3,000,000 annually, which stor Churchill said that with regard to maintaining peace and are convinced was perhaps some repayment for cur, the Road Fund, which is provided by immense efforts. He could, only say motorent licence, the revenue of that
Let us persevere.".
food was growing rapidly. He estimats: For the next financial year, the totaled that the existing motor licence duties, estimated expenditure was £812,300,000 which were designed in 1990 to produce and about £5,000,000 would yield next year against
estimated £700,300,000 £926,000,000 actual expenditure last year, no less than £20,000,000 'which was more estimates included nearly than £2,000,000 over the increased yield £19,000,000 new additional expenditure of last year. There was also a surplus arising either from the automatic "growth of nearly £19,000,000 in reserve. He pro- of pensions or decisions on policy last posed that the Exchequer should take year. There had been a net reduction £7,000,000 of this existing surplus. He
The
CAW
that the interests of the Russo-German peoples necessitate intimate co-opération.
Article No. 1 says that the basis of relations between the two Governments remains the Treaty of Rapallo and the will remain in friendly touch in order to reach an understanding on political and economic questions,
The second article states that should one of the signatories. despite its peace- fub attitude, he attacked by a third Power or several Powers, then the other signatory will remain neutral through- out the entire conflict.
The third Article, states that if a
of £7,000,000 in administrative services, proposed, also that revenue from motor including £4,000,000" ou armaments. A taxation should be divided in future, further continuous effort was necessary between the Rond Fund and the Exche- and Mr. Baldwin had authorised him to quer, on the broad principle that all that contition of three Fowers is formed with the object of imposing an economic or say that the Cabinet Committee of was raised to pay for the wear and tear Eronomy would continue its work, and of road should go to the roads, and that financial boycott against one of the that the estimates of the three fighting what belonged to luxury or pleasure assignatories, the other will not join that
peets should go to the State. Conseoalition, services would be considered jointly.
quently, the Exchequer would, in, the new financial year, take one-third of the yield of duties on private motor-cars ad cycles. The Exchequer would re- The estimated revenue on the existingceive. approximately, £3,500,000, Basis of taxation was £801,700,000 and $ield from commercial vehicles. would thus the estimated deficit on the existing basis of taxation was £7,941.000.
TRADE FACILITIES' ACT.
The Government did not intended to renew the Trade Facilities Act, which had exhausted its usefulness.
SILK DUTIES.
The fourth Article atates that the Treaty will last for five years, before the expiry of which both parties will keep each other informed with regard the further orientation of their political relations.
The
· En
all
go to the Road Fund. The duty on heavy vehicles of this class would be in- creased, as they put a great strain upon Mr. Churchill" dwelt on the happy the roads and were not paying their fair effects of the restoration of the gold share. This increase would go to the standard Including the normalising of exchanges in the great gold-using Do Rond Fund and would largely counter minions and placing our return to pro- balance the transfer to the Exchequer of sperity on a solid basis. The silk duties had worked with unexpected smoothness the portion of duties on private motor- and he was convinced that "the textile cars and cycles. industries of Lancashire. which he had been accused of ruining would regard the possibility of the repeal of the silk duties with dismay. There had been recently a check in the consumption of artificial silk, but the trade continued to progress. The foreigner paid the customs duties on artificial ilk as present prices were We had somewhat below last year's. secured a revenue of between £8,000,000 and £7,000,000,000, in a full year without making dearer the finery of poor working girls. (Ministerial cheers.)
IMPERIAL PREFERENCE.
[THROUGH KEJTER'S AGENCY.] TRANS-SIBERIAN EXPRESS. PROSPECT OF EARLY RESUMPTION
OF SERVICE.
Loxoox, April 26th.' The Morning Post says that news has been received in London that an agree ment has been reached in principle, be- tween the Soviet Government and the International Sleeping Car Company for the restoration of the trans-Siberian ex- press, whereby it will be possible to reach China overland from London in thirteen days, and Japan in fourteen' days. The agreement has not yet been signed but there are excellent reasons to believe it soon will be.
Mr. Churchill said that steps will be taken to prevent a repetition of the heavy losses from dislocation of trade as last year due to dumping in the in terval between the announcement of the silk tax and the passage of the Budget. Empire Preference had yielded satis factory results, notably on wines, to
Plans for duplication of the trans- bacco, and raisin. Mr. Churchill pro Siberian part of the line are being con- posed to extend the principle of a ten sidered. Fares will approximate to the years' guarantee of all Articles at pre-steamship fares. sent subject to Imperial Preference.
TAX ON BETTING.
He proposed :-
A betting tax, of five per cent on every stake on a race course or through
a credit bookmaker,
A new import duty of 16.2/3 per cent. on wrapping paper.
"In a covering letter to M. Krestinsky. the Soviet Ambassador, Herr Stresemann emphasises that Germany's entry into the League of Nations cannot be regard ed as an obstacle to the development of; friendly Russo-German relations.
The German Government is, he adds, determined to assist in making the idea! of peaceful settlement of international disputes a reality, but in the unlikely event of efforts, contradicting this basic idea of peace, being directed against Russia, then Germany will oppose them on the very strongest principles.
The German policy in regard to the Soviet cannot be influenced by Germany's loyal adherence to the obligations en- suing upon its entry into the League.
Concerning Articles Sixteen and Seven teen of the Covenant of the League on questions of sanctions which were ap plicable, to Russia only, in the event of Russia going to war against another country, the question of whether Russi was the attacker could only be decided with Germany's full agreement, so that the accusations of other countries would not be binding on Germany if Germany were not convinced of their justification
WHITE STAR LİNE.
BRITISH GROUP NEGOTIATING FOR PURCHASE.
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INDIAN COTTON. TARIFF BOARD TO INVESTIGATE JAPANESE COMPETITION."
1926
SLAM'S FINANCES, THREATENED BANKRUPTCY.
DRASTIC RETRENCHMENT
ORDERED.
By command of His Majesty the King, H.H. Prince Subhayoga Kähem, Minister of Finance, makes the following announce. ment:
It's a matter of public knowledge that the itate of the country's finances has for some years been a source of grave anxiety to HM's Government. The difficulties were referred to by His late Mujesty. An occasional excess of expenditure OVIY revenue due to a crop failure or to some abnormal, and non-recurring" expenditure, is not necessarily a subject for anxiety, provided there is a sufficien: reserve of cash to draw upon. A persist- ent defcit, such as has been experienced in Siam in each of the past four years, is a much more serious matter, especially when it is remembered that they were
COMING TO HONGKONG, PASSENGERS BOOKED ON P. & 0. STEAMERS.
Among the passengers due in Hong- kong this week on the P. & O. L Khyber are the following:-Mr. R. MaP. Austin. Mr. W. Blakey, Mrs. F. Birchall, · Miss E. D. Ly Birchall, Mr., R: Baldwin, Capt. F. G. Clayton, H.N., füstr.-Lt. --- Comdr. H. F. Farr, M.A., R. Ni, Engr.- Comdr. H. H. Gerdon, R.N., Miss Ot. Jenkins, Mr. "C. W. Oxford, Ptu. J. Parker and Mr. C. W. Somers.
Also on the, Khyber is Mr. T. R. Pons- ford and Sir Arthur K. Yapp, both of whom are proceeding to Yokohama.
Booked for Hongkong on the Halwo, which sailed from Southampton on April 10th, are the following:-Mr. John Bor- land, Mr. D. B. McK. Bone, Mr. D. A. Campbell, Mr. and Mrs. A. P. Glanville, Mr. and Mrs. W. Green. Surgeon-Comur. P. L. and Mrs. Gibson, Mrs. H. G. Hils. Comdr. H. F. 3. Handley, Mr. and Mrs. A. Kirby, Q. S. and Mrs.. A. E. Lea, Mr. W. S. T. McHatchin, It is understood that the Bombay Mill-years, of good crops and of good trade. Mr. and Mrs. W. A. Rose, Brevet-Major The following ate the reasons which led C. Roberts, V.C., D.S.O., O.BE, M.C.. C. M. R. Schwerdt, Mr. owners' Association has agreed to the the Government to the conclusion that the God. Sedswick, Mr. C. Tariff Board investigating the conditions position had become so serious, as to be Spittey, and Mr. and Mrs. J. Watt. of the industry, with special reference critical:-- to the request of prütection against Japanese competition.
Boxat, April 8th.
GENEVA SENSATION. ATTEMPTED ASSASSINATION OF WELL-KNOWN LAWYER.
Clearya, April" 56th.
An abortive attempt by as unknown individual, supposed to be. * Slav hns been made on the life of M. Aubert, a distinguished lawyer, who defended M. Polunin and M. Conradi, tried for the murder of M. Vorowsky, in May, 1993.
BRITISH SPIES." FRENCH TRIBUNAL TO HOLD CASE IN CAMERA,”
PARIS, April 28th.
The trial began to-day of the three alleged British spies and their two alleged women accomplices, on charges of having collected; or attempted to col- lect, information regarding the security and defence of the country.
The Tribunal decided to proceed with the case in Camera.
FRENCH WAR DEBTS.
M. RAOUL PERET TO VISIT LONDON NEXT WEEK.
PARIS. April 26th.`
M. Peret expects to go to London next week as the agreement with America will probably be signed in the meantime.
FOOTBALL AT HOME. RESULTS OF MID-WEEK LEAGUE
MATCHES.
LONDON, April 26th Matches played to-day in the English League resulted as follows:→
DIVISION I. Aston Villa; 2; Bolton, 2.
DIVISION II. Chelsea, 2; "Derby I. Stoke, 1; Oldham, 0. Wolves, Barnsley, 1. Hull, 4: Swansea, 2.
DIVISION 11. (SOUTKEIN). Brentford, 2; Plymouth,
[REUTERS AMERICAN SERVICE]: AMERICO-MEXICAN CLAIMS. COMMISSION DECLARE U.S. NOT
יו
ENTITLED TO DAMAGES.
MEXICO CITY, April 27th: The neutral Chairman of the Mexican delegates on the Americo-Mexican Claims Commission has sigried and issued their decision to the effect that the United States is not entitled to damages for the massacre of Americans at Santay Safe, Mexico, in 1918...
The American delegate declared the decision was illegal and did not kind the United States.
FRENCH DEBT TO US. 'COMMISSION AGAINST "THE
SAFETY CLAUSE."
WARNINOTON, April 28th.
On the Vancun, which left Southamp- (1) So long as the deficit persisted it ton on April 24th, for Hongkong, are:- Miss K. Andrews, Lieut. J. P. Brown, would be impossible to embark on any
M.C., Mr. J. Exton, Mrs. Hola, Miss new schemes for the progress and develop. S. Jackson, Mr. J. F. and Mrs. Lunny, Mrs. Raworth, and Miss Robin- ment of the country.
Travelling
to Hongkong ca Karmala, which leavey London on May 6th-Mr. and Mrs. Audifert and Mr. and Mrs. R. A. Hyne,
(2) Formerly, there was a substantial reserve of cash with the Treasury. As the result of these annual deficits, combined with the losses in exchange due to the upheaval of the international exchanges during the war the Government have been obliged to depend on the proceeds of the last foreign loan raised, as a means of carrying on
PERSISTENT SUDOST DEFICITS.
вол.
the
Oo the Kashmir, which will leave Londen on May 20th, the following passengers are booked for Hongkong Mr. and Mrs, H. R. Batters, Mr. Green- halgh, Capt. C. M. and Mrs. More, Mrs. O'Callaghan, and Mr. Scott.
SUNKEN WARSHIPS IN THE DARDANELLES.
+
(3) The great material progress audr hy Siain during the past 30 years has been
CONTRACT FOR SALVAGE. to a large extent due to capital expendi ture on works of development, such as the
The Turkish Government has contract- construction of railways, roads, irrigationed with the firm of Fratelli Sera to projects, etc. These schemes baw been salvage the warships and transports sunk carried out mainly from money borrowed in the Dardanelles. The total number of
so borrowed sunken vessels is said to be 39.
Under the contract 90 per cent. of any. abroad, the total amount
money extracted from the ships goes to amounting to ever Tes. 150 millions. Siam was able to burrow this money because of the Turkish Government, as well as 30 her good financial record, and because per cent, of the effects, while the Govern- nearly every year her revenues exceeded ment has the right to acquire any ship safved. Any vessel which is not wanted her expenditure.
may be sold to a third party.
The deterioration in the country's bud get within the past few years has however reacted an her credit abroad and unless the position were rectified before that deterioration had gone too far, she would find it difficult to raise further foreign loans, if and when necessary for the pur- poses of development, except on very onerous terms Moreover, with annual deficits, it would not be possible, to pro- vide for the interest on such loans.
(4) There would be a still greater dan ger to the country if the annual deficits were to continue. Sooner or later, they would be bound to lead to actual in solvency, r, zu inability to pay promptly the interest and promised repayments of the existing loans. This would result in Siam's foreign creditors taking action which might affect harmfully her political independence.
of three
Those dangers were foreseen by the Government of. His late Majesty and a Royal Commission
Privy Councillors was appointed to review the ectire budgetary situation. The work of that Commission succeeded in restricting in many directions the growth of ex- penditure. However it became, clear that more economy Le. the avoidance of new expenditure would not afford a solution of the financial difficulty, and that more drastic action would be necessary,
UNREMUNERATIVE EXPENDITURE.
The Timer recalls that among the big British war vessela which were sunk in the Dardanelles are irresistible (15,000 tous), Occan, Triumph, Majestic. (14,500 These were semi- tons), and Goliath. obsolete battleships, looked upon as unft: to take part in a fleet action, which formed part of the armada assembled by the British and.. French Navies at the entrance to the Dardanelles early in 1815. Irresistible and Octan, as well as the French battleship Bouvet, were sunk in the attempt (on March 18th, 1915) to force the Narrows. Triumph and Majestic were torpedoed by U4 on May 25th and 27th, and Goliath was sunk by a Turkish destroyer on May 13th.
British submarines were active in the Narrows: 15 was sunk on April 6th; torpedoed a Turkish gunboat où April ΣΑ 25th; and E7 was lost in October. July a French submarine and a transport were lost, and in August a Turkish gun boat and a transport were sunk, the latter by a British seaplane. Masy other small craft were lost during the operations, which concluded with the Allied withdrawal from the Gallipoli Peninsula early in 1918.
It was clear, therefore, to the Govern ment that the only proper solution lay in retrenchment of the existing expenditure and the Royal Commission received per mission from His late Majesty to proceed, on those lines. The Government were aware that this would involve considerable sacrifices, not only on the part of Minis- to forego some of their activities, but also tries and Departments which might have on the part of individuals. Of the total growth of expenditure in the Civil Minis- tries during the past ten years, most bas been in establishment charges. It follow- The exact form which such action shoulded therefore that the effect of retrench- take was the subject of anxious considerement was bound to fall most heavily upon tion by the Government. One possible the salaried officers of Government many alternative was to balance the budget by of whose posts it might be necessary to
There were *abolish imposing extra taxation. cogent reasons why His Majesty's Govern ment felt obliged to reject this solution. In the first place, it was impossible to overlook the fact that the expenditure had bees increasing rapidly. During the twelve years 2466-2107 inclusive the re venue had grown by 23.6 per cent. while the annual expenditure had increased by no less than 526 per cent. An examina tion of the nature of this expenditure showed moreover that a large part of it was devoted to objects which did not
The Debt Commission has decided that directly benefit the general tax-payer Tes. 4 millions. But for this large reduc
His Majesty's Government felt therefore that it would not be right to call upon the
THE KING'S GREAT SACRIFICI, The stern necessities of the case, and the vital importance to Siam of obtaining relief from the dangers of the present financial position, convinced His Majesty's Government that they were justified in calling for the necessary sacrifices. His Majesty Himself, immediately on His accession, expressed His determination to set an example by thoroughly reorganis ing the Royal expenditure, which ha accordingly been reduced by no less than tion it would have been impossible for His Majesty's Government to effect sufficient retrenchment in the country's expenditure balance the budget. The high Military and Naval authorities have co-operated is effecting economies in the Defence ex penditure to the extent of Tea. 18 mil lions, while the yearly increment of Tes 600,000, previously sanctioned for the ex penditure on the Air Service, has been suspended The Civil Ministries have suc ceeded in affecting a reduction of Tis. 4.3 In order to minimise the hardship
to
France must revise her debt offer, but it LONDON, April 28th. Messrs. Morgan, Grenfell & Company have not terminated.
is emphasized that the latest discussions taxpayer to make any larger contribution until the expenditure of the country had and Mr. P. A. Franklin, President of
A correspondent adds that one of the been thoroughly, overhauled:
unless this the International Mercantile Marine Company view as "premature" the re- chief hitches is how much France pays was done any balancing of the budget and after a few porta in the Press, but have authorised at the outset. The Commission is firmly could only be inculties would
recur. against the safety clause" whereby years the same
bance is relieved of debt responsibili- Becondly, it was necessary to think of the tics, in the event of Germany's failure to future. Even supposing that it would meet reparations payments. M. Berenger have been practicable to impose extra is not expected to insist on the clauses taxation of an amount sufficient to balance the budget the using up for this purpose BELGIAN DEBT.
of such margin of extra taxation as me millions now exist would have resulted in there caused to individuals who have been
the announcement that negotiations are proceeding with the view to the purchase of shares in the White Star Line by a British group represented by Messrs Morgan, Grenfell & Company.
MOROCCAN PARLEY.""
FRANCO-SPANISH DELEGATES' CONCESSION TO RIFFS.
USDA, April 28th. The Franco-Spaniard delegates have The McKenna duties would be ex. agreed to waive the preliminary condi- take time to arrange but a definite an-
tion for a peace conferente, and the tended commercial motor cars and Riff's delegates are expected to return it had been decided to re-enact for a period of ten tears Part I of the to the conference and proceed on the Safeguarding of Industries Act, re-basis of the original terms. Isting to essential factors of national The Franco-Spanish request was for defence, which otherwise, would, lapse a Riff withdrawal to a certain line whilst
the Conference wan in progress.]
this year.
A provisional agreement has been reached but the numerous details will
nouncement will be made when a settle ment has been reached.
#:
Meanwhile it may be stated that if negotiations mature, Messrs. Furness. Withy & Company will be the principal shipping interest in the purchasing Byndicate.
AMERICAN SENATE RATIFIES SETTLEMENT AGREEMENT.
WASHINGTON, April 8th. The Senate by fifty-five votes to twenty has ratified the Belgian Debt settlement agreement.
being nothing left to draw in future years) for new expenditure on development or similar purposes. The steady fall in the opium revenue will, moreover, leave a gap in the country's income which will in any case have to be filled from new sources
(Continued on next colur.)
obliged to retire prematurely from the service, appropriate pensions or gratuítica are being given, and the necessary. Snax- cial provision has been made in the budget!
By these means, the budget has been balanced, with a small surplus: