House of Commons
Thursday, June 10, 1909
Private Business
Glamorgan Water Board Bill,
Considered; to be read the third time.
Local Government Provisional Orders (No. 8) Bill,
Read a second time, and committed.
Finance Bill
Petition from Dublin Corporation
The SERJEANT-AT-ARMS (Mr. H. D. Erskine) announced the Lord Mayor of the City of Dublin.
Let the Lord Mayor he introduced.
The right hon. the Lord Mayor of Dublin (Alderman William Coffey), the High Sheriff, the ex-High Sheriff (Councillor E. P. Monk, J.P.), Councillor Nannetti, M.P., and the Town Clerk (Mr. Henry Campbell) appeared at the Bar of the House.
What have you there, my Lord Mayor of Dublin?
A Petition from the Lord Mayor, Aldermen and Burgesses of Dublin.
read the following Petition:—
Let the Petition be brought to the Table.
, proceeded to the Bar, received the Petition, and placed it upon the Table.
Returns
Death Sentences in Crown Colonies
Address for Return showing the number of Death Sentences and Executions in British Crown Colonies and Protectorates during the year 1908.—[ Sir Henry Cotton. ]
University Colleges (Great Britain)(Grant in Aid)
Copy of Report of Advisory Committee, dated the 24th day of July, 1908, and of the Treasury Minute on the Committee's Report, dated the 3rd day of June, 1909.—[ Mr. Hobhouse. ]
Oral Answers to Questions
Questions
Railway to Tabriz
asked the Secretary of State for Foreign Affairs whether the Russian Government proposes to make a railway from the Russian frontier to the city of Tabriz in Persia; if so, whether this line will be under the control of the Russian or Persian Government; and whether he can state what the probable duration of the stay of Russian troops in Persian territory will be?
As regards the first question, I am not aware that the Russian Government have any such action in contemplation. I am unable to make any statement yet in regard to the last question.
asked the Secretary of State for Foreign Affairs whether material is being collected by the Russian authorities for the purpose of constructing a railway from the Russian frontier to Tabriz, in Persia; and can he state the present position of the question of the introduction of railways into Persia?
I am not aware that any material is being collected by the Russian authorities for the purpose indicated by the hon. Member, nor is there any discussion proceeding at present on the subject of the introduction of railways into Persia. There is, moreover, no prospect of railway construction in Persia, so long as the Russo-Persian Railway Convention is in force; and in any case His Majesty's Government hold that it would not be advisable to take such questions into practical consideration until Persian finances have been established on a stable footing.
Russia and Teheran
asked the Secretary of State for Foreign Affairs whether the Russian Government had yet appointed a Minister to represent Russia at Teheran; if so, can he state who has been appointed to fill this post; and when it is expected that he will take up his duties?
As far as His Majesty's Government are aware no appointment has yet been made.
Persian Sheepskin and Intestine Trade
asked the Secretary of State for Foreign Affairs whether a concession had recently been granted by the Persian Government to a Russian syndicate conferring upon the syndicate the monopoly of the sheepskin and intestine trade for the whole of Persia for a period of five years, whether under the terms al the concession it is provided that the concessionnaires shall have the right of exporting their purchases free of duty, with a heavy resultant loss in revenue to the Persian Treasury; whether under Article 24 of the Persian Constitution all commercial, industrial, or agricultural concessions are subject to the approval of the Persian Parliament; and is it proposed by the Governments of Great Britain and Russia to protest against the grant by the Persian Government of a concession of this nature, in defiance of the provisions of the Persian Constitution, which the Shah has restored at the instance of these two Powers?
I have no information of any such concession having been recently granted by the Persian Government.
asked a further question, which was inaudible in the Gallery.
I will make inquiries as regards British interests. I do not gather from the question that there are sufficient British interests to justify an inquiry. The hon. Member seems to have more information on this subject than I have. If he will provide me with it I will inquire whether British interests are affected.
Persian Financial Affairs
asked the Secretary of State for Foreign Affairs whether any treaty or convention has been concluded between His Majesty's Government and that of Russia providing, among other matters, for the control of Persian financial affairs by Great Britain and Russia; and is any agreement of this nature under discussion between the two Governments?
If any money is advanced to the Persian Government, it should, in my opinion, not be done without guarantees that it is properly spent. But no such treaty or convention as is contemplated in the question has been concluded, nor is one under discussion.
Czar's Visit to England
asked the Secretary of State for Foreign Affairs whether the contemplated visit of His Majesty the Emperor of Russia to English territorial waters will be of a public or private nature?
On their return from a visit to the President of the French Republic at Cherbourg, the Emperor and Empress of Russia with their family propose to visit the King and Queen at Cowes during the week of the regatta. The visit will be on the sane lines as that paid by the King and Queen last year to the Emperor and Empress of Russia at Reval, and visits such as those to and from the Emperor of Germany and the King of Sweden, which I understand have been arranged, and others, such as that to the King of Italy, which are said to be contemplated.
Will the Czar be accompanied by his Prime Minister on this visit? The King was not accompanied by his Foreign Secretary when he went to Reval.
I do not know by whom the Emperor of Russia will be accompanied. He is paying a series of visits, and the visits will all be on the same lines as this.
Will the right hon. Gentleman be there in his capacity as responsible Minister for Foreign Affairs to this House in the event of any international transactions taking place?
Perhaps the hon. Member will repeat his question when the actual date of the visit is fixed, which will not be for some weeks, when I shall be able to give him an answer.
Will Parliament be sitting?
Russian Troops in Persia
asked the Secretary of State for Foreign Affairs whether he can state the number of Russian troops at present in Persia?
As far as I am aware, the position still stands as it did on the date of my reply to the hon. Member for West Mayo, viz., there are about 4,000 Russian troops at present in or near Tabriz, as well as small detachments which have been sent to reinforce the guards permanently stationed at Russian Consulates in other towns in the North of Persia.
Will the right hon. Gentleman say whether the Government has received from the Russian Government any statement as to when the Russian troops will be withdrawn?
I have answered the question of the hon. Member, and I am unable to make any further statement.
Fresh or Frozen Meat at Egyptian Ports
asked the Secretary of State for Foreign Affairs if he can state whether there is any inspection of fresh or frozen meat arriving at Egyptian ports; whether such meat, if passed by the inspector, is officially marked as being in a sound condition; and whether frozen kidneys, livers, etc., when closely packed in cases, are thawed out for purposes of examination?
I have no information on the subject.
asked a further question which did not reach the Gallery.
That is primarily a matter of detail.
May I ask whether Members of this House have no right to ask for details?
Hon. Members have, of course, the right to ask for any information, but it is very undesirable that the Government should be continually pressed upon points of detail.
May I ask whether the information asked for is not obtainable?
Do not give way.
Egyptian Police
asked the Secretary of State for Foreign Affairs if he can state whether, in the Egyptian Estimates for 1909–10, there is any increase for police expenditure; and, if so, what extra number of men will it provide for; and will there be any general increase of pay?
The estimates for 1909 provide for a slight increase under this head, but I have no information as to how it is proposed to employ this sum.
Is this not a point on which information can be asked for?
I can only repeat the answer which I have already given. The hon. Member asks so many questions every week, not merely on questions of general supervision but on details, that it is impossible to answer them all. He addresses questions on details which can only be supplied by the Local Government Board, the Board of Trade, the Home Office, the Board of Agriculture and other Departments, and it is impossible for me to supply the information.
May I ask whether that answer applies to a simple question for information? Can the right hon. Gentleman indicate any other source from which information can be obtained by Members of this House?
The hon. Gentleman seems to regard the Government of this country as an office for providing universal information.
May I ask whether it is the view of the right hon. Gentleman or the view of the Government that the British control over Egypt, which is absolute, is fitly to be exercised with a limited control of asking questions in this House?
May I ask whether the information about frozen kidneys comes under this head
I have never deprecated the right of asking questions. What I have pointed out is that it is for the House as a whole to take into consideration how far it is reasonable that the Government of this country should be asked to go into all these details. When I have information I will give it. But it is a question of degree. The hon. Member asks so many questions on points of detail that it is impossible for me to provide all the information he wants.
Sir H. Plunkett's Work (Mr. Roosevelt's Letter)
asked the Secretary of State for Foreign Affairs whether His Majesty's Government has ever informed Sir Horace Plunkett of the letter written by Mr. Roosevelt, as President of the United States, regarding Sir Horace Plunkett's work in Ireland and transmitted to the Foreign Office by His Majesty's Ambassador at Washington; whether the communication in which His Majesty's Ambassador conveyed to Sir Horace Plunkett a copy of the letter was of a private character, which precluded the publication of its contents; and whether he intends that the thanks expressed by the President, on behalf of the United States, both to Ireland and to Sir Horace Plunkett should be withheld from the public?
Before that question is answered, may I ask whether it is not a matter of common knowledge that the letter was published in the Irish newspapers long ago?
I have nothing to add to the answer given to the hon. Member for North Londonderry on Monday last, except that I am not aware that we have done anything to preclude publication, which I understand has taken place.
May I ask whether the private communication of the British Ambassador not only obviously precluded Sir Horace Plunkett from publishing the ex-President's letter, but also precluded his asking the permission of the Secretary of State to publish it?
All I know is that I have been informed by the British Ambassador that he sent a copy of the letter to Sir Horace Plunkett, and I do not know that the letter has been published.
May I ask the right hon. Gentleman whether it is not a fact that this letter was first published in America, and could only have been so published by a copy of it having been handed by the ex-President of the United States to the American journals?
May I also ask when the right hon. Gentleman received the letter from the President of the United States, and if he sent a copy of it to the Irish Office?
Perhaps the right hon. Gentleman will give notice of that question. I have given all the information in my possession.
May I ask the right hon. Gentleman whether this letter was not long ago published in the Irish newspapers and made the text of innumerable eulogies of Sir Horace Plunkett?
I have nothing to add to the answer given on Monday last.
May I ask whether the right hon. Gentleman is aware that Sir Horace Plunkett was driven out of public life by the very gentlemen who are now defending him?
Irish National Schools (Heating and Cleansing)
asked the Chief Secretary for Ireland whether he will use his influence with the Prime Minister to have facilities given for the passage of the Bill for the heating and cleansing of Irish National Schools during the present Session?
Before I could do anything else with a view to providing some remedy for the existing state of things, it is absolutely essential that I should receive some assurance that the measure in question would be generally acceptable in Ireland. I am sorry to say that no such assurance is forthcoming, and in its absence it is impossible to proceed any further in the matter.
Is not the right hon. Gentleman aware that hon. Members below the Gangway who represent Ireland, and my colleagues from the North of Ireland, are heartily in accord with regard to this Bill, which is urgently required, and will he bring his influence to bear on his own colleagues to allow this Bill to pass? It is a very small matter.
I should desire a little more assurance than I have yet received that this Bill will receive unanimous support in Ireland.
Did not the right hon. Gentleman receive a deputation, headed by the Countess of Aberdeen, the other day, in favour of the Bill?
Yes, but I did not gather that they had any information whatever as to the Bill receiving general assent in Ireland, in view of its throwing half the expense of this matter on the rates.
Poisons and Pharmacy Act (Licences in Ireland)
asked the Chief Secretary for Ireland whether he is aware that in considering applications for licences under The Poisons and Pharmacy Act, 1908, and to assist them in their decisions, the county councils of Ireland find it necessary to make inquiries as to whether the applicants fulfil the conditions laid down in the regulations promulgated by the Lord Lieutenant under the Act and as to the circumstances and needs of the locality; whether they can rely upon the assistance and co-operation of the Royal Irish Constabulary in acquiring this necessary information; and, if not, whether he will state what other machinery is at the disposal of the county councils for securing such information?
The duty of granting licences is by the Act thrown on the local authorities, and any inquiries necessary to enable them to deal with applications should be made by their own officers. The police cannot be asked to undertake the duties of the local authorities in the matter, but no doubt, if asked, they will furnish any information within their knowledge as to any particular applicant which the local authorities cannot otherwise obtain.
Is the right hon. Gentleman aware the Irish Constabulary have been ordered not to give this information by the county councils?
I was not aware of that. But I think it desirable that the police duties should not be added to, and that they should not consider it part of their duty to obtain this sort of information. Of course, if they are in possession of such information they would be authorised to give it.
But surely it is not unreasonable that they should be allowed to get the information?
Where information is required for these purposes as to the character of a man, and whether he can read or write, and what sort of accommodation he has for carrying on his trade, I do not think that is any part of the duty of the police to supply it.
Athlone Guardians (Clerical Staff)
asked the Chief Secretary for Ireland whether, in view of the repeated requests of the Athlone Board of Guardians and district councils for a division of their clerical staff, and of the fact that these bodies have secured the services of competent men under the proposed division, and that the clerks are satisfied as to the adequacy of the salaries, he will advise the Local Government Board to agree to the arrangement made by the representatives of the ratepayers?
No reasons for the proposed change have been put forward which would remove the very strong objections set out in my reply to the question asked by the hon. Member for South Westmeath on the 17th May.
Does not the right hon. Gentleman think that trivial matters of this nature should be left to the local guardians?
I do not know that it is a trivial matter; it appears to me to be of some importance. Formerly one person discharged these duties, and they gave him a salary of £200. Now it is proposed to have the work divided between three people on miserably small salaries. The Local Government Board do not think that at all desirable.
Is the right hon. Gentleman aware that four district councils in Ireland have already divided the duties in this manner with the assent of the Local Government Board?
I have no knowledge of that.
Dog Licence Duty (Ireland)
asked the Chief Secretary for Ireland whether any deductions have been made since the passing of the Labourers Act, 1906, from the amounts payable to the local authorities in Ireland from the surplus dog licence duty on account of the withdrawal of the sum of £150,000 from the Petty Sessions Fund, and, if so, what is the amount; and, seeing that such deduction is a clear violation of the bargain made in connection with the Labourers Act by which this money formed portion of a grant in aid of local rates in respect of expenditure under the Labourers Act, whether he will give instructions to the Registrar of Petty Sessions Clerks to pay over these deductions to the local authorities?
Since the sum of £150,000 has been withdrawn from the Petty Sessions Fund for the purposes of the Labourers (Ireland) Act, 1906, the dividends on that sum have ceased to be available for the fund, and in pursuance of the Petty Sessions Clerks (Ireland) Act, 1881, an equivalent sum has necessarily been deducted from the surplus dog licence duty before payment of the latter to the local authorities. The matter was fully discussed in Debate on the Labourers Bill, and there has been no violation of any bargain. It would not be possible for the Registrar of Petty Sessions Clerks to make good the reduction, as the whole of the surplus dog licence duty has been paid over to the local authorities each year.
Is not the right hon. Gentleman aware that this Grant was given in relief of the local rates, and in fact no relief has been extended, inasmuch as a deduction has been made from the dog licence duty?
The matter is a little bit complicated. The sum of £150,000 was taken away from the Petty Sessions Fund and made available for the Labourers Act. That reduced the resources of the Petty Sessions Fund, and they were entitled to make up the revenue from the dog licence duty. What they did was to take that duty and hand the surplus over. It was the sort of thing one might have expected to happen in connection with the administration of these Acts.
King's Scholarship Examination (Ireland)
asked the Chief Secretary for Ireland whether he will state the number of students, male and female, who presented themselves for the King's Scholarship examination last Easter in Ireland, and the number of those who took Irish as one of their subjects?
I am informed by the Commissioners of National Education that 694 men and 1,859 women presented themselves for the King's Scholarship examination this year. Of these 348 men and 628 women took Irish as one of their subjects.
West Kerry Evicted Tenants (Reinstatement)
asked the Chief Secretary how many applications for reinstatement have been received from evicted tenants in West Kerry; how many of those have been inquired into and how many have been rejected; how many have been reinstated in their old holdings or supplied with other farms; and whether he is aware that dissatisfaction prevails owing to the delay in settling cases?
The Estates Commissioners inform me that their statistics are not compiled according to Parliamentary Divisions. The figures for the county of Kerry are as follows:—1,036 applications have been received from persons seeking reinstatement as evicted tenants, or the representatives of evicted tenants, of which number 137 were not lodged within the time specified in the Evicted Tenants Act, and have not been inquired into. After inquiry 470 applications have been rejected, 287 applicants have been reinstated in their former holdings or provided with other holdings, and 142 have been provisionally noted for consideration in the allotment of untenanted land.
Sale of Clarke Estate, County Tipperary
asked the Chief Secretary for Ireland whether he is aware that the trustees of the Clarke property, in and near Borrisokane, county Tipperary (N.), intimated to the tenants thereon their intention to sell the property under the Land Act of 1903; that the said tenants intimated to the tenants thereon their years ago; and that the Estates Commissioners were informed of the desire of the parties to transact such sale and purchase of the property; and, if so, will he say what is the cause of the delay in giving effect to the wishes of all those concerned in this sale and purchase?
The Estates Commissioners inform me that the purchase agree- ments in connection with the sale of the estate of Gerald Higginbotham and others, trustees of Clarke, to which this question appears to refer, were not lodged until March, 1908. The estate will be dealt with in order of priority, but its turn has not yet come.
Will the right hon. Gentleman use his influence to press this matter forward
It will be proceeded with as quickly as circumstances permit.
New Ross Old Age Pensions Sub-Committee
asked the Chief Secretary for Ireland whether he is aware that the New Ross old age pensions sub-committee passed a resolution at their last meeting requesting that, in cases where the decision of the local authority is reversed on appeal by the Local Government Board, the Board be required to set forth definitely the ground on which their decision is based; and whether he will consider the advisability of seeing that the request of the New Ross sub-committee is complied with?
I have received the resolution in question. As regards the remainder of the question I would refer the hon. Member to my reply to the question on the same subject asked by the hon. Member for North Meath on 25th March last.
Old Age Pension Claim (Welshtown, Donegal)
asked the Chief Secretary for Ireland whether he can state why and on what evidence the Local Government Board decided that Daniel Duffy, of Welshtown, county Donegal, was not entitled to a pension which was granted by the pensions committee at Stanorlar, his age being proved by the solemn declaration of Daniel M'Menamin to be over 70 years; and whether he will have the matter inquired into and Duffy's pension restored to him?
This claimant's name was not recorded among the members of his family in the Census Returns of 1841, and in the Census of 1851 his age was given as 8 years only. In view of these facts the Local Government Board felt bound to hold that he had not reached the statutory age. It is not open to the Board to reconsider their decision on the claim.
Old Age Pension Claims (Proof of Age)
asked the Chief Secretary for Ireland if he can say under what conditions can Irish pension claimants, obviously over 70 years of age, who can produce no documentary evidence of age, and who cannot be traced in the Census Office, be recommended for pensions; and what discretion, if any, is the pension officer allowed in the matter?
I have been asked by my right hon. Friend to answer this question. In a case of the kind referred to in the hon. Member's question, in the absence of documentary evidence of age, the pension officer would submit the case, with such evidence as might be available, to the pension committee for decision. In cases in which the pension committee allows the claim, the pension officer would use his discretion, according to the circumstances, as to whether an appeal should or should not be made to the Local Government Board against the pension committee's decision.
Is it suggested the claimants make false statements?
No; but they may make mistaken ones.
Is it not the fact that all the appeals under the Old Age Pensions Act are decided by the pensions officer, and one never knows what principle he acts on?
The appeals are not to the pensions officer, but to the Local Government Board.
Land Annuity Defaulters (Limerick)
asked the Chief Secretary for Ireland is he aware that the Limerick County Council asked the Local Government Board to furnish them with the list of names of the persons in the county who have made default in the payment of their annuities under the Land Act; if he can say why the Local Government Board refused to give them the names of such defaulters; is he aware that £1,700 have been taken from the grant in aid of the rates of the county owing to such defalcation; and will he take steps to see that the council be supplied with the information asked for?
The Local Government Board are not furnished with the names of the persons in default, and, in reply to the request of the county council, have informed them on two occasions that they cannot supply the list as requested, inasmuch as the liability of the county in the matter is certified by the Land Commission and the Commissioners of National Debt, the only duty devolving on the Board being to deduct the proper proportion from the amounts payable to the several local bodies. The entire land purchase liability of the county was £2,870 15s. 9d., which has been deducted in due proportion from the shares of the several bodies in the county entitled to receive the estate duty grant. The deduction from the share of the county council as a road authority was £1,079 17s. 11d. The names of all defaulters in arrear for two half-yearly instalments and upwards will be found in the appendix to the last Annual Report of the Land Commission.
If the county council apply to the Land Commission for this information—for this list of names—will the Land Commission supply it to them; and is it not for the public interest that the representatives of the ratepayers should get this information and see that the amounts are paid off?
I do not know what the result of an application to the Land Commission would be; perhaps it had better be made first.
Irish Old Age Pensions (Census Records)
asked the Chief Secretary for Ireland if he can say whether, as the result of the search of the Census records for the ages of Irish pensioners made by the Treasury experts, it has been found that where pensioners were traced in the Census both of 1841 and 1851 they appeared as a rule to be from one to three or more years older, judged by the 1841 records, than if judged by those of 1851; and, in view of this fact, if he can say what margin of age, if any, will the authorities allow before raising questions or disqualifying pensioners or claimants to pensions on the strength of the 1851 Census record alone; and whether, in the course of the search of the Census records, it has been found that the ages of Irish pensioners who could not originally produce birth or baptism certificates were, in numerous instances, if not in the majority of cases, found to be above the age given by them when they made their claim?
Discrepancies have been found in some cases in the relative ages of claimants as recorded in the Census Returns of 1841 and 1851, but I am informed that these cases have not been very numerous. Where these discrepancies have been found to exist the facts have been reported to the pension committees for decision. I regret that I have not sufficient statistical information available from which to verify the general conclusions which the hon. Member's question suggests might be drawn from the Census records.
If a discrepancy exists as to the age between the 1841 Census and the 1851 Census, what margin will be allowed in the matter of age?
We cannot allow any average margin of age. Each question will have to be decided upon the circumstances of each particular case. We cannot have an average age upon the points which are comprised in the hon. Member's question.
On what Census is the age taken? Is it the 1841 Census, which records the age of the applicants, or the 1851 Census?
I do not think that it can be stated universally that the question of age should be decided entirely by the 1841 or the 1851 Census.
It is this clerk in the Customs House who really decides by crossing his pen who is eligible. What is the principle involved?
Extraordinary Traffic (Ireland)
asked the Chief Secretary for Ireland whether he has received representations from county councils in Ireland urging the necessity of extending the Highways and Locomotives Acts dealing with extraordinary traffic on roads in Ireland; and whether it is intended to propose legislation on this subject?
The attention of the Local Government Board has been frequently drawn to this matter by various local bodies in Ireland, and in 1905 an attempt was made to remedy the difficulty, a Bill being introduced into Parliament, which, however, did not pass into law. Quite recently the Board have been in communication with the Down County Council on the subject, and have asked for their views as to the expediency of extending and applying section 23 of the Highways and Locomotives (Amendment) Act, 1878, to Ireland. The council are now communicating with other local bodies in England and Ireland, and have not yet replied to the Board's letter.
Teachers' Congress (Galway)
asked the Chief Secretary for Ireland if he could say who directed one of the secretaries to the Commissioners of National Education, Ireland, to write letter L94/1909 C.I. on 19th April, 1909, inquiring about the accuracy of the report of the president's address at the Teachers' Congress in Galway; could he say why no further action had been taken to ascertain the accuracy of the report, and what investigation is proposed as to the action described; and whether such action was sanctioned or approved by the Board?
The Commissioners of National Education do not consider that it would be in the interest of the public service to publish details regarding their administration such as are asked for in the question.
Labourers' Cottages (Youghal)
asked the Chief Secretary for Ireland whether he is aware that the Youghal Rural District Council, county Cork, find it impossible to purchase the requisite land, build labourers' cottages, and pay necessary expenses for the sum allowed by the Local Government Board per cottage, £170; whether he is aware that other rural district councils in the South of Ireland are similarly circumstanced; and whether facilities will be given to rural district councils in Ireland to borrow money for the purpose of making good any deficiency when the amount sanctioned by the Local Government Board is not sufficient for the object in view?
I understand that the council applied for a loan at the rate of £181 per cottage and plot, to cover cost of building, land, fencing, and incidental expenses. As the estimates for the last two items were much in excess of the average in other districts the Local Government Board sanctioned a loan at the rate of £170 per cottage and plot. Allowing for an increase in the cost of building, which is probably necessary, the Board consider that the council should be able to carry out the scheme at the rate sanctioned by curtailing the incidental expenses and providing cheaper fences. Some other district councils have stated that they are in the same position as the Youghal council. Where clue economy has been exercised the Board will be disposed to entertain an application for a supplemental loan, should the amount of the original loan be exceeded. As loans amounting to three and a quarter millions have already been sanctioned out of the four and a quarter millions provided by the Labourers Act, 1906, the Board cannot undertake to grant supplemental loans out of that fund, but a local authority can be authorised to borrow the money required in the open market.
Inspector of Police (Punjab)
asked the Under-Secretary of State for India whether a Mahomedan gentleman named Ali Akbar was appointed inspector of police in the Punjab over the heads of a number of European inspectors; whether this gentleman had previously been in Government service; and, if so, under what circumstances he left that service?
The Secretary of State has no information on the subject. If the hon. Member will furnish a further statement of facts the Secretary of State will consider whether there are sufficient grounds for addressing an inquiry to the Government of India.
Indian Income Tax
asked whether the officers of the Indian Government telegraph service while on duty in Persia are compelled to pay Indian Income Tax; whether there is any statutory authority for this levy; and, if not, on what principle is it justified?
The officers in question are paid out of Indian revenues, and a deduction is made from their salaries at the same rate at which Income Tax would be levied under the Indian Income Tax Act if they were employed in India. The Secretary of State will consult the Government of India regarding the points raised in the latter part of the question.
Deportations from India (Treatment of Prisoners)
asked the Under-Secretary of State for India whether he is aware that Mr. Krishna Kumar Mitra, who is one of the nine Bengali gentlemen deported in December last without charge or trial, is confined in the Agra gaol and is there living in a solitary cell, ill-lighted and ill-ventilated, that his food is cooked by an up-country convict, wholly unacquainted with Bengal dietary, and that the burning heat of Agra has already told on his health, which is much impaired; and whether, having regard to the fact that his detention has been ordered for preventive and not punitive reasons, steps will now be taken to ensure that the remaining indefinite period of his deportation will be alleviated by the removal of avoidable causes of hardship and discomfort?
The Secretary of State is not aware of the facts alleged. Mr. Mitra has, so far as the Secretary of State is aware, made no representations to the effect described by the hon. Member, and the magistrate of Agra recently reported that he had found Mr. Mitra in good health and satisfied with his treatment.
May I ask whether it is consistent with the provisions of the Regulation of 1818, which enjoins that those who are detained shall be treated with the consideration due to their rank and position—whether the terms of that Regulation are consistent with confining these gentlemen as prisoners in a common gaol?
I quite agree that the treatment of political deportees in that way ought to be suitable to their circumstances of life.
Can the hon. Gentleman tell us how many of these gentlemen are confined in gaol?
That does not arise out of this question.
Appeal Judgments (India)
asked the Under-Secretary of State for India whether his attention has been called to the recent appeal judgment of the High Court of the Native State of Travancore, acquiting 62 prisoners who had been sentenced to various terms of imprisonment for riot, characterising the prosecution evidence as a tissue of lies, and stating that there was no evidence to show that the prisoners were connected with any political movement, and to the recent acquittal on appeal by the High Court of Calcutta of three persons convicted in the Midnapur bomb conspiracy case; and whether, in view of the above-mentioned appeal judgments, he will communicate to the House statistics showing the comparative efficiency, as determined by reversals, of the courts of justice in Native States and in British India, and the extent to which in either case the personnel of the bench and of the police force is Indian in character? The hon. Member said: Of course, I only ask for such figures as are available.
The Secretary of State has seen newspaper reports of the judgments referred to. He regrets that the statistics for which the hon. Member asks are not available, and he doubts whether the result to be expected from compiling them would be commensurate with the labour involved.
asked the Under-Secretary of State for India whether the Chief Justice and Mr. Justice Mackenzie quashed on appeal from the Midnapur Sessions Court the convictions of three men in connection with the alleged Midnapur bomb conspiracy, and declared that the confessions extorted by the police were not voluntary but obtained by irregular procedure; whether, in regard to the finding of a bomb in the house of one of the prisoners, the learned judges stated that they inclined to the theory of the defence that the bomb had been placed there by the police, and that the methods of police action disclosed in this case supported this hypothesis; and whether, having regard to the character of this judgment and its bearing on the relations between the Executive Government in India and the subjects of the Crown, the official Report of the judgment, as delivered, will be laid upon the Table of the House of Commons?
On a point of order, Sir, may I ask before this and the following question are answered whether it is in order under the cover of a question to impute to the Government Of India that it suborns its police officers to fabricate evidence and brings corrupt pressure to bear upon the judicial bench?
I do not like to say whether those imputations are contained in these questions or not, but I have no doubt the Minister who answers will be quite capable of taking care of the Indian Government.
The judgment to which the hon. Member refers was delivered on 1st June, and there has therefore not been time for a copy of it to reach the Secretary of State. Until he has seen it in a full and authentic shape he can form no opinion as to the desirability of presenting it to Parliament. I may add, perhaps, that the Secretary of State has telegraphed asking for a full report of these circumstances.
asked the Under-Secretary of State for India what is the tenure under which the judges of the High Court of India hold office; do they hold office during good behaviour or at the pleasure of the Executive; and what are the safeguards for the security of their freedom from the influence and control of the Executive Government in the discharge of their duties in cases of conflict between the Executive and the subject and for their protection from any ill-consequences in the giving of decisions unfavourable to the Executive?
The judges of the High Courts, who are appointed by His Majesty, hold office during His Majesty's pleasure (24 and 25 Viet., c. 104, sect. 4). The Local Executive Government in India has no control or influence over them in the discharge of their duties.
Is not this the case that these judges of the High Court are in the strictest sense of the word Removables, and they can be deported when the Government likes? Is there ally fear of that?
No.
Crown Agents' Commission
asked whether the recommendations of the Crown Agents' Commission have yet been carried into effect?
The Secretary of State has had under his consideration the arrangements submitted to him by the Crown Agents for the Colonies for giving effect to the recommendations of the Committee appointed to inquire into the organisation of their office, and it is proposed that the new arrangements should come into force generally on 1st July.
Loans on School Buildings (Repayment)
asked the Prime Minister whether, in view of the statement to the deputation of local authorities on 14th January last with regard to the desirability of lengthening the period for the repayment of loans on school buildings and the prospect of such extension being given, he will take steps to secure the immediate realisation of the hopes then and thereby raised?
I would refer my hon. Friend to an answer which I gave to the hon. Member for Sunderland on 26th May last, in which I informed him that the Local Government Board habitually allow 60 years for the repayment of loans for the purchase of land for education purposes, and that, as regards loans for school buildings, my right hon. Friend the President of the Local Government Board has undertaken to consider the representations made to him by any local authority as to the circumstances of each particular case. I need not say that I adhere to the opinion which I expressed to the deputation.
Scotch Estimates
asked the Prime Minister on what day he proposes to take Scotch Estimates?
The usual communications in regard to Votes in Supply will be made with the Opposition, and I hope that a day convenient to Scotch Members may be arranged shortly.
Welsh Church Commission (Report of Evidence)
asked whether the interim Report and evidence taken before the Welsh Church Commission will be available to Members of this House at least one week before the second reading of the Welsh Disestablishment Bill is taken?
I have no information as to when the Report of the Royal Commission will be published. It is a matter that does not rest with the Government.
London Elections Bill
asked the Prime Minister whether he is aware that the London Elections Bill was on Friday last referred to a Grand Committee; whether he is aware that, in the discussions on the new Rules in 1907, Sir Henry Fowler stated that it was the intention of the Government that all important controversial Bills should be discussed in the House and not in Grand Committee; that the late Prime Minister, Sir Henry Campbell-Bannerman, replying to an Amendment relating to the franchise, informed the House that Bills dealing with Parliamentary reform were measures which ought to be left to the judgment of the House to decide; and that in the same Debate Sir Henry Campbell-Bannerman was quoted as saying that no Government would think of sending a Bill of that kind (the Franchise Bill) upstairs, because it would be such a violent reversal of the old practice, and that they might trust any Government to abstain from such a course; and what steps he proposes to take to ensure that these undertakings shall be carried out?
In the opinion of the Government, the London Elections Bill does not fall within either of the categories referred to in the question. It is less controversial, as we believe, than several of the Bills which have been considered by Grand Committtees. Nor is it a Bill "dealing with Parliamentary reform" in the sense in which that phrase was obviously used by Sir Henry Campbell-Bannerman. It merely assimilates electoral conditions in London to those of all the other great cities of the country.
Australian Offer of "Dreadnought."
asked the Prime Minister whether he has received the offer of a ship of the "Dreadnought" class or the equivalent from the Federal Government of Australia; and whether he can state if the offer has been accepted?
I have much pleasure in announcing that the following telegram was received from the Governor-General of the Commonwealth on 4th June:—
"Government of Commonwealth of Australia take earliest opportunity, after assuming office, to inform Prime Minister, as President of Imperial Conference, that they will shortly submit to Parliament their proposals for defence of Commonwealth and its coasts. They now beg to offer to the Empire an Australian 'Dreadnought' or such addition to its naval strength as may be determined after consultation with naval and military conference in London at which it will be represented. This offer will be communicated to Parliament immediately it reassembles."
To this the Secretary of State replied on 7th June in the following terms:—
"Please convey to your Ministers the warm and very cordial thanks of His Majesty's Government for offer contained in your telegram of June 4th. They welcome the opportunity for consultation which will be afforded by the forthcoming Conference on the defence of the Empire."
is the right hon. Gentleman aware that this offer of a "Dreadnought" from the new Govern- ment has met with considerable dissent from a large proportion of the people of the Colony.
East Africa Syndicate
asked the Under-Secretary of State for the Colonies if he will state the nature of the concessions granted to the East Africa Syndicate in East Africa what consideration was received by the Government in respect thereof; the number of Masai natives that were deported from the concession; and approximately the number of inhabitants and live stock on the lands six years ago and at the present time; and whether he is satisfied that the syndicate and other concessionnaires in East Africa have fairly fulfilled the conditions under which large tracts of land were obtained and the natives removed therefrom?
The East Africa Syndicate are the lessees of an area of 500 square miles of land in the neighbourhood of Naivasha. The term of the lease will be seen from the form of lease printed at page 24 of Command paper 2,100. The syndicate also hold a lease of the soda deposits known as Lake Magadi. The consideration reserved to the Government in this case is 5 per cent. of the profits earned by the lessee from the working of the demised premises. I am unable to state, without reference to the Protectorate, what number of Masai were transferred from the area covered by the Naivasha concession to lands elsewhere, or the number of the inhabitants and live stock on that area six years ago, and at the present time, but I will cause inquiry to be made on both points, and communicate with my hon. Friend. In the case of the Lake Magadi lease, I am not aware that there has been any disturbance of the natives or their herds. With regard to the last part of my hon. Friend's question, it is of so general a character that I find it impossible to give an adequate answer within the limits permissible for a Parliamentary reply.
With regard to the latter part of my hon. Friend's reply will the Government, as far as possible, and within reasonable bounds, insist that the conditions under which the very large concessions have been made will be honestly carried out?
Yes, I can assure my hon. Friend that the Secretary of State will see that all reasonable requirements are carried into effect.
Do we understand that while the Government receive consideration from the syndicate the natives who have been dispossessed of their land will also receive consideration from their chief?
So far as the hon. Gentleman refers to the matters which took place many years ago, when the control of this Protectorate was under the Foreign Office, I cannot answer without notice, but with regard to the future I can assure him that the interests of the natives will be fully safeguarded in every case.
Are any more concessions of this character granted nowadays?
It depends what the hon. Member means by "of this character." Perhaps he will put down a question saying of what kind of concession he approves or disapproves. We are not disposed to grant unduly large concessions to companies.
Old Age Pension Claims (Ireland)
asked what is the number of pension claims in Ireland made up to 18th May, 1909, which are pending, in connection with which search has to be made in the Census Office and the ages have not yet been ascertained; how many of these are pending for two months and over and how many for six weeks and over, respectively, from that date, and how long it will take to deal with them?
The number of new claims in Ireland made up to 18th May, 1909, which are pending search in the
Assistants of Excise
asked what was the aggregate number of days during the month of April last during which assistants of Excise were unemployed; the number of assistants who had fourteen days and more unemployment during the month; and the number who were unemployed the whole month?
I have no information which would enable me to give the hon. Member the facts asked for. They could only he obtained by sending out a special circular to all collectors. As at present advised, I do not think that it would be worth while imposing such increased duties on the collectors.
Revenue Officers (Sheffield)
asked why the Revenue officers at Sheffield who collected Income Tax arrears a year ago have not yet been paid the usual remuneration for the work, and why two applications made to the Board of Inland Revenue have been ignored?
Orders for payment of the remuneration referred to by the hon. Member have been issued.
When? After I put the question?
Either the day before yesterday or yesterday. Perhaps the hon. Gentleman will allow me to point out that these cases are never dealt with until all the claims have been recovered, and one of the officers concerned was exceptionally slow in sending in. It is very largely due to his remissness that it was not possible to settle them before.
Old Age Pension (Bernard M'Cormack, Corlecky)
asked the Secretary to the Treasury whether he can state why the pension book of Bernard M'Cormack, of Corlecky, Welshtown, East Donegal, was impounded at the post office and his pension refused after he had received it for a month; whether he can say if that is the proper procedure to follow in depriving him of his pension that, after inquiry, was granted to him by the pensions committee; and whether he is aware that many of the old people in the Stranorlar district can prove on oath that he is over 70 years of age, if that is the objection set up?
The pension in question was stopped, an appeal to the Local Government Board having been decided against the claimant, because Bernard M'Cormack's name appears in the Census of 1851, where he is returned as aged nine years, and does not appear at all, though the family is there, in the Census of 1841. In the face of such documentary evidence, statements of age founded on the belief or recollection of old persons in the locality cannot be accepted as evidence. The stoppage of the pension, pending a decision on the question, was made by the pension officer as a precautionary measure, seeing that a pensioner is liable to repay any pension received by him while the statutory conditions are not fulfilled.
Is the hon. Gentleman aware that these Census Returns on which he relies would not be received as legal evidence in any court of justice, whereas the evidence of the old people would?
No, I am not.
Let him ask the Lord Advocate or the Solicitor-General.
Naval Expenditure (Ireland)
asked how much of the cost of the Navy has been spent in Ireland; and how much has been spent on naval stores in that country?
I regret that it is not possible to make the calculation necessary to enable me to answer the hon. Member's question.
In view of the importance of this matter, could not the right hon. Gentleman ascertain what the value is of the stores annually purchased for the Navy in Ireland, and could he not tell us how much is spent in Ireland for naval purposes?
That is exactly the subject matter of the hon. Gentleman's question. I have inquired into the facts, and I find it quite impossible to separate the accounts in a way which will show how much was spent in Ireland.
May I ask the right hon. Gentleman whether it would not be perfectly feasible and easy to ascertain how much money is spent with Irish firms for stores for the Navy?
That is exactly the point we are unable to discover. So many of our contracts are for materials which are supplied by other persons, who may or may not be Irish firms, that it is impossible to distinguish between the one and the other.
May I ask whether the difficulty in procuring the information is due to the fact that not a single farthing is spent in Ireland?
The hon. Gentleman is aware that we have a naval station at Haulbowline and another naval station at Berehaven, and that some of the ships are always in Irish waters.
May I ask whether the right hon. Gentleman is aware that his predecessor found no difficulty in obtaining the figures, and that he gave them in answer to a similar question put by me last year? They were so small that they were not worth giving.
I have not the figures of my predecessor before me. He may have answered the question, but he could not have given a complete answer.
Will the right hon. Gentleman see that the form in which the accounts are kept will be changed, so that he will be able to give the House the information in future?
No, Sir; I do not think I could undertake to do that.
May I ask the right hon. Gentleman whether he is aware that the Loyalist Members for Ireland do not care how much is spent on the Navy so long as he keeps it in an efficient state?
May I ask the right hon. Gentleman whether he has ever received from hon. Gentlemen above the Gangway the offer of a "Dreadnought" or even a jolly-boat?
Naval Inquiry (Admiral Bethell and Captain Hulbert)
asked the First Lord of the Admiralty if he is aware that Captain Hulbert was informed by Admiral Bethell that if he gave evidence against the Board of Admiralty at the naval inquiry he would be put on half pay; and whether this action has been reported to the Naval Inquiry Committee?
The allegation contained in the first part of the hon. Member's question is devoid of all foundation.
May I ask the right hon. Gentleman whether he personally assured himself?
Absolutely.
With both officers?
"Dreadnoughts" (Improvements)
asked the First Lord of the Admiralty if the Admiralty will, as alleged, be able to point to improvements in the four new "Dreadnoughts" that will make the four new ships as great an advance upon the present "Dreadnoughts" as fighting forces as was the famed progenitor upon its predecessors in the Navy?
It is impossible to make exact comparison of the kind suggested, but that there will be improvements there is no doubt.
May I ask the right hon. Gentleman whether his attention has been called to the fact that the substance of this question appeared in a prominent paper in London, whether the Admiralty authorised the statement, and whether there is any foundation for it?
My attention was called to the statement when I saw the hon. Gentleman's question on the Paper. I inquired as to what it was founded on, and I can assure the hon. Gentleman that the statement was in no sense authoritative, and that it was not the result of any communication made by any person in the Admiralty. So far as I know it was the fabrication of the writer.
That is something for Toby.
Captain Bacon's and Admiral Mann's Letters
asked the First Lord of the Admiralty if he will state whether he has received a communication from Sir George Armstrong explaining the facts under which Captain Bacon's and Admiral Mann's letters to Sir John Fisher had come into his hands; and, if so, whether he will lay this Paper upon the Table?
The answer to the first part of the question is in the affirmative, and to the second part in the negative.
May I ask the right hon. Gentleman if he can see his way to withdraw the allegation he made as to the way in which the letters had been obtained?
May I ask whether the right hon. Gentleman has apologised in any way to those officers for what has taken place?
As the allegation was made in this House against Sir George Armstrong and the naval officers in respect to the letters, can the right hon. Gentleman see his way to withdraw the allegation in this House?
My hon. Friend knows as well as I do that no allegation was made by me against the naval officers.
Did not the right hon. Gentleman state that Sir George Armstrong had received the letters and had given a monetary consideration for them?
No, Sir; I did not say that. I said I did not know how he got them.
Battleships (New Construction)
asked whether plans for the gun-mountings for the four battleships additional to the 1909–10 programme have been approved; and whether it will be necessary to extend the existing building slips for the construction of these vessels?
All necessary plans for the gun-mountings, and arrangements for-the building slips, will be approved in time for the ships to be laid down, should it be decided to proceed with their construction.
May I ask when the Government intend to decide whether additional ships will be constructed, and. further, whether he is aware that the country will not wait much longer?
Business of the House
May I ask the Prime Minister what business he proposes to take next week?
On Monday we propose to take Supply—Home Office, Class II., Votes 4 and 17,
On Tuesday the Resolutions allocating time to the further stages of the Housing and Town Planning Bill, and the Irish Land Bill,
On Wednesday, the second reading of the Labour Exchanges Bill,
On Thursday, Supply—Local Government Board, Class II., Vote 16; and Revenue, Vote 1, Customs and Excise.
Friday is the first of the two Fridays after Whitsuntide assigned to private Members.
Can the Prime Minister say when the Indian Budget is likely to be taken, and what time will be devoted to it?
No, Sir, I cannot say at present.
When will the second reading of the Milk Bill be taken?
I cannot say at present.
Bills Presented
The following Bills were presented and read the first time:—
Mr. STEADMAN—Education of the Blind.—Bill to provide for the technical education, employment, and maintenance of the Blind. (To be read a second time 18th June.)
Mr. RENDALL—Trusts.—Bill to declare and amend the Law of Trusts as favoured by the Select Committee on Trusts (1908). (To be read a second time 16th June.)
Business of the House
Business of the House (Supply).—Resolved, that the Proceedings on the Finance Bill have precedence this day of the Business of Supply.—[ The Prime Minister. ]
Finance Bill
Order read, for resuming Adjourned Debate on Amendment to Question [ 7th June ], "That the Bill be now read a second time,"
Which Amendment was, to leave out the word "now," and at the end of the Question, to add the words "upon this day three months."—[ Mr. Austen Chamberlain. ]
Question again proposed: "That the word 'now' stand part of the Question."
Debate resumed.
The Chancellor of the Exchequer, in the speech to which we listened yesterday with so much enjoyment, stated that the bulk of the criticism of the Opposition had been directed to that part of the Bill which deals with land values, and that little had been said of the liquor Licence Duties and other matters. I think, before I close my remarks, I shall have to come back for a short time to the proposals as to land values, but I propose at the outset to say something about the liquor Licence Duties. It was one of the objections, if not the main objection, to the Licensing Bill of last year not only that the duties proposed upon licences were of large amount, but that they were imposed in such a manner as to fall unequally on the different persons concerned. The first point I want to make in regard to these duties is that they too are subject to the same objection. These Licence Duties are based upon annual value—that is, upon assessment. Assessment bears no relation—no necessary relation—to sales of liquor or to profits. The result must be therefore that the operation of the duties must be unequal and capricious. First take the duty on off-licence holders. That is mainly dependent upon the annual value—that is the annual value of the whole premises upon which the off-licence holder carries on the whole of his business. The liquor part of his trade may be one-third, one-sixth, one-tenth, or even a smaller fraction of his business. Nevertheless, duty is levied with reference to the annual value of the whole of those premises. In very many cases, therefore, the off-licence holder will pay a duty proportionate not to the liquor part of his business, but to the whole of his business arising from many other matters. This involves great hardship in very many cases. I was rather surprised that, although the matter has been mentioned several times before, no answer yet has been given on behalf of the Government. As a sample of, I was going to say hundreds of, letters which I have received—and I am sure other hon. Members have received many similar letters—I may read one letter for which I can vouch. The writer says:— upon the sales of drink made upon them. I am glad to see that that suggestion, which is not made for the first time, meets with the approval of hon. Members opposite as well as those on this side of the House.
Now a few words about hotels. They are like the off-licence holders in one respect. They carry on a mixed business. A portion of their business is selling drink no doubt, but the main portion of their business is providing accommodation for travellers. But the hotels and restaurants are treated a great deal worse than the off-licence holders. They are assessed on the annual value of their premises, but without the maximum which governs the licence duties upon off-licence holders. Therefore in their case the licence duties run to very large amounts, while at the same time it cannot be denied that most of the business done by hotels is unconnected with the sale of liquor. It is true that some allowance is made to hotel people. If the liquor part of the business is more than one-third of the whole, then they have to pay, I think, double the duty which represents the true proportion of the liquor business to the whole of the business. Why limit it to cases where the liquor business is only one-third of the whole? And when it reaches that, why double the duty? Why do you not in this case, as in the other, levy the hotel and restaurant duty in proportion to the actual sales of drink? The remedy which is fair for off-licences is equally fair for other kinds of mixed businesses. Nobody who has studied the figures will deny the great injustice and hardship caused to hotels by the proposals in the Bill. I am aware of the option given by the right hon. Gentleman the Chancellor of the Exchequer, in clause 31, sub-section 3, and I have got some figures showing the results, and without going into details I hope that the right hon. Gentleman will allow me to say—and I will give him the figures—the relief that is offered is very much less than he himself I suppose thinks. I ask him in all good faith to look into this again, and he will find that that is so.
Coming to the ordinary on-licence holders, I pass by the provisions in the Bill about assessing compensation value which are found in section 30, sub-section (2). We do not know what the result will be of the machinery for ascertaining compensation value in the future. I must deal with the On-Licence Duty upon the footing of the proposals of the present Bill—that is, that the licence holder shall pay in the case of a fully-licensed house half his annual value, and in the case of a beer-house one-third of his annual value. There is this special provision in the Bill, the justice of which I have not been able yet to understand, that in ascertaining the annual value the Licence Duty is not to be deducted. That means that this very heavy outgoing on the business levied on the premises shall not be deducted in ascertaining the annual value. Are hon. Members aware of the result of that proposal? I have here particulars showing the effect on 30 houses. The result is that duties amounting on an average to £56 a year will be increased to an average of £417 a year—an enormous increase to make suddenly upon all these houses. What must be the result? Of course, to large breweries it means very heavy expense; but to these particular houses, especially free houses, it means something much more serious. The owner of a free house, as a rule, has not got the capital behind him, and in face of a heavy loss of this kind the result must be he will seek shelter, and allow the house to become tied to a brewer, or he will have to close the house.
It is the fact—I do not know whether hon. Members opposite realise it—that many of the holders of free houses are already making inquiries to find some large brewing company to which they can tie their houses so as to avoid paying the heavy licence duty. This Government is most unfortunate as to its proposals. It professes to be in favour of free transfer, and it doubles the stamp duty on sales and leases. It professes to be in favour of cheap housing, and it puts a heavy tax on the raw material of houses, namely, the land. It professes to be in favour of free houses, and it gives to every owner of a free house the strongest inducement to make it a tied house. Now, what is the object of this sudden and heavy increase of licence duties? Is it your object to close a number of houses? I must attribute to the Government the intention of attaining the result which will in fact be caused by the Bill—namely, the closing of a number of these houses either next September or in the September following, when the result of the measure has been ascertained. Is that the real object of this Bill? If it is so, it is one of the least creditable parts of the proposals of this Budget. Look at it for a moment. In 1869 Parliament gave special protection to a certain class of houses, and directed that they should not be refused a licence except for misconduct. In 1904, in exchange for the surrender of that special privilege, this Rouse directed that no public-house should be closed or have its licence refused, except for misconduct, without the payment of proper compensation. Last year, when the Government did desire to close a number of houses, they made it part of their Bill that a time notice should be given—that a 14 years' time-limit should be allowed, with a further seven years before the closing could take place. Everyone of these proposals recognised, and some of them actually created, an interest in the licensee. Yet to-day you come to the House with a proposal the effect of which is, and must be, to close a large number of these houses without a year's notice or a shilling of compensation. You cannot draw a distinction between the closing of a house by refusing the licence and the closing of a house by imposing upon the licensee a penalty or a tax which he cannot bear. In either case the effect is the same, and I think the motive must be the same.
I think, on reflection, that very few who look into and understand this matter will defend the proposals such as are found in this Budget. The right hon. Gentleman objects to being accused of vindictive legislation. I do not want to use that word. I am quite willing to believe that the proposal is without full consideration of the effect which it must have; but if, after such consideration is given, and if, after the facts are pointed out, this proposal is persisted in, and is pressed upon the House, I think it would be difficult for anybody to doubt that behind this proposal of taxation is a motive for inflicting injury upon the houses affected by the Bill. Let me ask this: Why is it that the proposals of this Bill will be so hard upon certain houses in the trade? I believe it to be because—as I said of the off-licences—the tax is to be levied upon the annual value, which is really no test either of sales or of profit. Take a glaring instance which already has been brought before the Chancellor of the Exchequer—that of London houses. According to population, London should not bear much more than a tenth of this extra Licence Duty. Out of the £2,600,000 it should not bear more than £260,000. As a matter of fact, figures have been got out on the basis of the very careful returns presented to the London County Council. Upon that basis the amount which will be borne by London of this increased Licence Duty will he not £260,000, but £640,000. Instead of a tenth it will be very nearly a fourth of the whole increased Licence Duty levied. The reason of this inequality, if you will look into it, is perfectly obvious. It is admitted—the right hon. Gentleman admitted it himself—that the valuations in London are much higher than the valuations elsewhere. Comparison has been made of the number of highly-rated public-houses in London with the number of highly-rated houses in large boroughs in the country of 100,000 population and upwards. If you compare the total licences in London to the total licences in boroughs of 100,000 population London has only 5,000 out of about 14,000. But if you take the highly-rated houses only, the result is very different. For instance, out of houses rated at from £100 to £200 a year, nearly a third are in London. Out of houses rated at from £200 to £300 a year, more than half; out of houses rated at from £300 a year to £400 a year, more than three-fifths; and out of houses at from £400 to £500 a year, more than five-sevenths. So as you go up the scale you find more and more the great proportion of highly-rated houses are found, not in the large towns of the country, but in London, showing, I think, beyond the possibility of contradiction, that it is the fact that the houses in London are highly assessed; therefore, under the scale of duty, based not on receipts for sale, but on annual value, London must suffer, and must suffer unfairly, by the operation of these duties.
If that be so, surely some remedy ought to be given for an injustice which is patent. Take two of the best-known breweries. Take Whitbread's Brewery, in regard to which I am authorised to use this figure. Out of the increased Licence Duty they will pay £42,000 a year, a figure almost sufficient to eat up the whole of the dividend on their ordinary and preferred ordinary shares. If you add to that figure the new manufacturing duties, they are paying a total of £51,000 a year, more than the amount of the whole dividend which they are paying upon their ordinary and preferred ordinary shares. Take the case of Truman, Hanbury, and Buxton. In that instance the new Licence Duty which they are paying means an amount of £47,000 a year, and the total extra duty will amount to £53,000 a year. In support of the point I am putting now I can quote the hon. Member for Huddersfield (Mr. Sherwell), whom I see now in his place, and who put this very point. In "The Taxation of the Liquor Trade," he said:—
Does the hon. Gentleman plead for special treatment for the houses in London, or does he refer to the whole country?
It would not be reasonable for me to press for special treatment for London. What I press for is such an alteration in the provisions of the Bill as will prevent a special hardship falling on the houses in London. I know that there is a provision in the schedule under which houses rated at £700 and over have an option, and may choose to be rated either on annual value or on compensation value. But that only relieves certain houses, and only to a very small extent. The amount of the relief has been worked out by men who know their business, and I assure the right hon. Gentleman that the maximum amount of relief to London under this special provision, on the most favourable computation, is only £75,000, a mere fleabite compared with what the houses really suffer by reason of the inequality. There are other remedies perfectly easy to adopt. You might treat the on-licence houses as you are treating clubs. You might levy your additional duty on on-licence houses by means of a levy of so much in the £ on the sales, or—which would, of course, be more convenient—so much in the £ on the purchases of liquor made for the purpose of sale in these houses. A duty of 6d. in the £, for example, on the sales in the on-licence houses would produce, it is calculated, about two millions a year, or nearly the amount expected to be raised by the additional duty. There is another and much simpler method of dealing with that matter. You have a Beer Duty at present. If you increased that Beer Duty, it would cost you nothing more for collection; it would throw the burden of the extra charge upon the shoulders of those who take the extra profit; and that must be a fairer way. I am not saying for a moment that the Beer Duty is not high enough; but, if you think that this trade, which is a falling trade, and already bears so large a proportion of our national expenditure, can bear a higher charge, and if you must impose it, I say drop this system of high Licence Duty, which must cause great inequality and injustice, and resort to the simple, downright, and honest expedient of adding a sufficient amount, whatever it may be, to the Beer Duty now levied. A duty of 1s. 6d. a barrel would produce 2½ millions of money, which is about the amount estimated to be raised by the proposed duty. I have said all I wish to say about this particular part of the Bill. I am dealing with a very serious business interest; I have attempted to deal with the matter in a practical way, and I would press upon the Government that as regards this part of their Budget some reconsideration is necessary, if only in order to avoid a revival of the prolonged and bitter contest through which we went last year, and which none of us desire to see renewed.
Will the House bear with me if I pass for a short time to the taxes on land values? I cannot leave them out altogether, but I will endeavour not to repeat anything which has been already said. I want, however, to make my contribution to the collection of criticisms which have been made with regard to these proposals. Does the House realise how many valuations will be rendered necessary by the proposals of the Bill? You must have, first, your valuation for the purpose of ascertaining your original total value, and your original site value. All the owners of the country, something like a million in number, must make that return. I have understated the number, because not only the freeholders but the long leaseholders must make the return. If a man attempts to make that return without taking expert advice I say he is a fool for his pains. No one would be wise to take that course. Therefore, every one of these owners, if he is wise, will consult a valuer, and have a value put upon his property before he makes his return. That is valuation No. 1, for which, of course, the owner will have to pay, and if there are any mistakes in the valuation the onus of the loss will fall upon him. Then every five years you must have a valuation of your undeveloped land and your minerals. Every 15 years corporations and unincorporated bodies must have their land valued again for the purpose of the increment value. On every sale of any interest less than the fee simple there must be a further valuation. On every lease for more than 21 years of any part of your property you must have a valuation. On the falling in of each one of your leases again the valuer comes in; and on death there must also be a valuation, not the simple valuation now made under the Death Duties Acts, but a special valuation enabling you to fix the increment value. This is very good for members of the profession of valuers. For them the prospect is such as to excite the envy of members of less highly-paid professions. But, though it may be good for the valuers, it is very bad for the owners, and these successive valuations will bring a very heavy charge indeed upon owners of land, great and small. In the case of the small owner the proportion of expense will be much heavier, according to the value of the property, than in the case of the large owner. Then, when you have got your valuation, it is true, as the Lord Advocate said, that every valuation is a matter of opinion. The opinion may be right or it may be wrong. If the opinion of your valuer turns out to be wrong, then under the provisions of this Bill the owner must suffer some loss by reason of the error which has been made.
The second point I wish to make is this. I think that this Bill, above all Acts which I know, gives enormous powers to a public Department over the amount of taxation to be levied. I do not think that anybody who has not gone through the Bill with some care can realise how great are the powers given to the Commissioners of Inland Revenue. The Commissioners are to call for returns in the form which they will prescribe. When the returns of the valuer are made, they can object and require amendment, and if effect is not given to their objection they can determine both the original and the later valuations. They settle the deductions, they say whether covenants are for the public benefit or not, they have to make the apportionment of value between different parcels of land, and in most cases they will have to make that apportionment retrospectively—that is, when the duty becomes payable on a sale of part of the land, they will have to look back and apportion, after the event, the original site value. They have to fix the duty payable; they have to say what exemptions are to be allowed. If I completed the list I should go on for a long time. In some cases, but not in all, an appeal is given—an appeal to a referee appointed by a Government Department. It is not everybody who cares to appeal. Many would reluctantly accept the Commissioners' decision. That will have the effect that the amount of taxation, in some cases running into very large sums, to be imposed upon the subject will be determined under this Bill by the public Department which hitherto has shown the greatest possible ability and success in increasing the amount of taxation levied under Finance Acts. There is no Statute, I believe, under which powers over taxation so great are given to a public Department.
Then, if I am not wearying the House, may I refer to the increment value? I want the House to compare the provisions for fixing the original site value with the provisions for ascertaining the value upon which taxation is levied, and to see upon what it is that the increment value duty is to be levied. In fixing the original site value, under clause 14, the Bill says that you are to strip the land of all buildings and structures, and of the timber, and you are to make deductions representing the value of permanent works. The result is the figure from which you start. But in fixing your taxable site value, when the duty comes to be paid, you are to strip the land of the buildings and structures, but you are not to strip it of the timber. That will have an extraordinary result. I do not know whether it is done on purpose, but the effect will be that you will have to pay the increment value duty upon the value of your timber, although it may be old timber which was growing on the land when the original valuation was made.
Then let me put another point. In finding your taxable site value, you are to deduct the value of the permanent works, but I do not think that that will cover such things as the drainage of agricultural land or the cultivation of the land, expenditure in putting the land in good heart, and so improving, of course, its value. The result, if I am right, is this: Upon such expenditure as that—very often heavy expenditure on agricultural land—expenditure resulting in an improved value—increment value duty will be payable as if that were in no sense the result of that expenditure. That is another matter which, I think, will require very grave consideration. Let me put another point: On death, Increment Value Duty is paid on the increment, and Death Duties are payable upon the whole estate, and the result will be that on the increment of the estate you will on death pay a duty twice over. Let me put a case. Supposing there is an estate of £100,000, and supposing a fifth of it is found to be increment value. You must pay 20 per cent. on the increment value and also pay the full Death Duty on the whole estate, including the increment. That is a heavy addition to the Death Duties, which are already heavy enough. Now as to the Reversion Duty. Take the case of a lease of agricultural land—a lease which falls in. During the tenancy it has been improved by the tenant. You have to pay Reversion Duty on the amount of that improvement, and you will also have to pay the tenant compensation for the expenditure he has made. There, again, you have to pay double duty on the same sum. That is another point which has evidently not been considered. Take the case of a lease of land for building—a lease of vacant land at a low ground rent of £5 or £10, with a covenant to build, and to keep the building up. Surely that covenant is part of the consideration on which you grant your lease. Surely you would have expected that in ascertaining your Reversion Duty that should be taken into account and should not be taxed. If I read the Bill aright that is not so, because if you look at clause 21 of the Bill you will find that it is only if the rent is a nominal rent—that is, that the rent has no value at all—that a building covenant of that kind is to be considered. Therefore it is actually the fact that if I grant a building lease at, say, £5 per year with a covenant to build a house, and to yield up the building at the end of the term, I must pay duty on the buildings erected.
A word about the mineral rights. All over the country a man has to value the minerals under his land. It is said—I do not know with what truth—that there is cc al under the whole of London. It is said that there is a good deal of coal in Kent, and possibly some in Surrey. Nobody knows, but everybody has to make a return of the minerals under his hand, not of the minerals in open mines only, but of any minerals which are there under his land. How on earth is a man to know whether minerals are there or not, or how many seams there are? How can he estimate the expenses of sinking a shaft through soil the nature of which he does not know? How can the most. expert valuer, how can anybody, even the mining engineer who must almost he a diviner, without opening the land, without sinking a bore-hole, give you any reliable figure whatever of the value of the minerals? In the case of many mines that are opened the mining company finds it has made a mistake and gives up the mine altogether. The value of an unopened mine is, I think, beyond the power of even a very expert valuer to estimate. The Chancellor of the Exchequer told the House that he had been down a coal mine during the interval. I had the pleasure of seeing a very excellent photograph of him in the dress of a miner, which I am bound to say appeared to be too large. The Chancellor of the Exchequer said yesterday:— on royalties, not on minerals which have been obtained, but on minerals still in the soil, and towards the getting of which no step has been taken whatever. Therefore, it is a charge not on royalty, but in cases where no royalty whatever has been paid. I think that puts an end to the somewhat declamatory passage in which the right hon. Gentleman dealt with that subject.
It is often said when proposals appear to be impracticable, put them in the form of a Bill. In this particular case the Government have divested the proposals of the land-taxers of the theoretical arguments which they have hitherto advanced, and have put them in the form of a Bill. The result has been they have put them in a kind of pillory, where everyone may see all the absurdities underlying these proposals, and all the inconsistencies. We are told, why do you complain of these Land Taxes which, after all, are not very much? I am not sure that those who say that realise the cumulative effect of the taxes now proposed. Let me enumerate some of the taxes. There is the increased Death Duty, the increase of Succession Duty, the new Duty on Gifts when the owner dies within five years, double Stamp Duty on every sale and on every lease, the perfectly new duty on the value of voluntary transfers. That is a matter which has not been referred to yet. The effect of that particular clause of the Bill is this, that on every voluntary transfer of land you are to pay a Stamp Duty of 1 per cent. on the value. Just compare what the result of that will be in the case of a gift or resettlement, or even the disentailment or the cutting off of the entail of a large estate! On that process now there is a Stamp Duty of 10s. in all. Now take the duty of 1 per cent., and take the case of an estate, say, of £100,000. Your duty of 10s. formerly will be increased to £1,000. The effect, I think, is hardly realised except by those who are concerned in dealing with land. Large estates in this country are every day or very constantly disentailed, very much to the benefit of the family or community. On all those transactions this heavy duty, amounting in some cases to thousands of pounds, will be required, although there is no cash received and possibly no cash available. On the top of all these duties there is this special Land Tax imposed, and I do not think hon. Members can wonder if we dread the effect upon the whole land system of the country.
It has been pointed out by the circular of the London bankers, signed by many distinguished men, many of whom if they were in this House would sit on the Government side, it has been pointed out that in their experience, which is very great, Death Duties are paid, not out of income, but out of capital, and the same must be true of the new Death Duty and the Land Duty which we are discussing. What is the result of this? The Government is forcing the country to spend its savings. I cannot distinguish between the savings of the individuals in the nation and the savings of the nation as a whole. And it is the fact that for the purpose of your yearly expenditure you are drawing upon the accumulated wealth of the country, which will seriously deplete the accumulated wealth of this rich country, what the effect upon trade and commerce and manufactures will be all of us can imagine. I think there may be a result more serious still than that. It seems to happen to this country, and perhaps to others once at least in every century, that it is forced to engage in something like a struggle for existence. I do not want to go into other subjects, but no serious man can fail to see that a crisis may be upon us in this country. If we should be engaged, which God forbid, in a great war, it will be a war, not only of men against men, or of ships against ships, but also of resources against resources, and, in the end, of wealth against wealth; and if in that time of trial it should come that you by your unwise fiscal system have largely diminished the accumulated wealth on which at that time the country might justly call, and if by reason of that depletion disaster should ensue, then I do not think that the generation on which that disaster will occur will wholly acquit, will wholly absolve, the present Government from blame.
I find that there are three clear principles embodied in this Bill. The first is that the extra cost which the Government require for running the State is to be raised out of wealth and luxury; the second is that there is no tax on food and the necessaries of life; and the third is, although this proposal is in a form of which I do not entirely approve, a burden is to be laid on urban land apart from buildings. I have always advocated those three principles, and for that reason I voted for all the Resolutions which have preceded the introduction of this Bill, and I shall vote for the second reading tonight. I do that all the more readily because I tthink my right hon. Friend the Chancellor of the Exchequer was unduly struck at in the earlier stages of the Bill. I will venture humbly to say to hon. Gentlemen opposite that it is no use grumbling. The Government wants more money, and they must get it out of something. I think, therefore, we ought to concentrate our criticisms as much as possible on the subsequent stages.
Notwithstanding, however, these excellent principles, I do not think there was ever a Budget on which criticism has been so much invited as it has on the present Budget. The Chancellor of the Exchequer, I believe, spent the whole of the month of May in making promises of amendments and improvements which touched nearly every clause of the Bill. An invitation is thus given to the House to see how the clauses now stand as amended and improved. Perhaps I will consult the convenience of the House if I just deal with some of those points which seem to me to require consideration in view of the heavy burdens which seem likely to be placed upon us. We must bear in mind that however good principles may be they must not be carried to excess. I have some fear that this latter point has not been observed in this Bill in the way it should have been.
A most important principle of finance is that this House will only agree to grant the Government money for one year. The Government should look at expenditure for that one year, and no longer. That is an old constitutional principle in this country, and I am not quite sure that my right hon. Friend remembered it in all he has said to us. We have in the Chancellor of the Exchequer a man of interesting character, in whatever work he may be engaged. He seems to be a sort of Dr. Jekyll and Mr. Hyde. He is a social reformer. In a social reformer you want a man of imagination, who will draw cheques and ask for large sums for the projects which he has in view. As Chancellor of the Exchequer you want a cold, stern man, who will impress everybody who goes to him for money; and who will remember, above all things, that it is his chief duty to be the watchdog of the public purse. I am not at all sure that my right hon. Friend is playing the two parts properly. The Chancellor of the Exchequer has declared that he is not financing for a single year at present. I will read the passage. I am sorry that more attention has not been called to it. In his opening speech on the Budget he said:—
Another principle to which I attach the greatest importance is that due economy ought to be observed by Chancellors of the Exchequer. It is a most amazing thing that the right hon. Gentleman has said nothing of economy. When this Parliament was elected there was a great majority. What we submitted to the nation was the extravagance of the late Government. We said that the Estimates had gone up, and we asked for authority from the country to cut them down, to relieve the taxpayers, and to show what an economical Government could do! Now, in the first great crisis of our existence, scarcely a word has been spoken about economy, and I want, on this point, the attention of the House to a very curious thing which has taken place in our proceedings, for the first time in my now long Parliamentary experience. The House will remember that on the morning of the Budget there appeared in the newspapers one-half of the Chancellor's speech. I said: "This is a most excellent arrangement; we shall have a short, businesslike speech, and a useful discussion." What happened? We had the longest speech I ever remember from a Chancellor of the Exchequer. My right hon. Friend never does a thing like this without a reason. What did that part of the speech contained in the morning papers tell us? It told us the Estimates for the year on which the Budget was based. Usually we have had that from the Chancellor's own lips, but we got it then in the paper instead.
I want to point attention to the fact that there is a gross under-estimate of the revenue which will be produced next year. The Return referred to has been in the hands of Members, and perhaps for the reason I have mentioned it has not been much discussed. The Customs Estimate for next year is £1,100,000 less than last year. The Excise is £1,600,000 less. That is without any change in taxation. Why should this £2,700,000 less be produced by the Customs and Excise this year than last year? There is an improvement, I am glad to say, in trade. The outlook so far does not justify the figures at all. It is fair that I should mention some explanation given. We are told that there were large clearances in advance at the end of March. I think on that point my right hon. Friend has made a slip. The clearances on dutiable goods took place not in March, but in April of this year, and they appear to the advantage of the present year, and not to that of the last. The tea clearances, which were very great—and also quite unnecessary—amounted to 46,000,000 pounds in April this year, whereas usually they are only 25,000,000 pounds, taking April and May together they far exceed the average quantity of tea which is usually cleared. That is the only reason given for this large under-estimate of revenue. I turn to the Excise. In Excise there was an underestimate of £1,600,000. What is that based upon? Upon the increasing sobriety of the people. For the six years previous to last year the loss of revenue from this source was £180,000 in average—last year £800,000. Why should there be a further drop of £1,600,000 this year? We usually find where a great drop occurs in the revenue that it recovers in the next year. I think there is a great under-estimate in all these figures.
I will mention one or two other examples. The Post Office is estimated to produce only £100,000 more than last year. Income Tax is estimated to produce £30,000 less. I do not believe that to be justified at all. Last year there was an increase in the Income Tax of £1,000,000.
I turn now to the expenditure, and I find that it is on a most lavish scale. I see no trace of that economy that a Liberal Government should practise. There is provision made in the Post Office for an increased expenditure of £800,000. The increase in receipts is put at £100,000. The Post Office ought to be a paying business, and if there is only to be that small increase in receipts the Chancellor of the Exchequer should not have to demand such a vast additional expenditure. In the Army the increase is put at nearly £600,000, in the Navy at £3,000,000, and in the Civil Services at £7,000,000. This latter increase is on account of the old age pensions, and that is the one justifiable part of the whole calculation.
Now the third principle—I hope the House will forgive me in taking up its time—that I think ought to be observed on these occasions is that no more should be asked in any taxes than the necessities of the State require. On this subject I put a question to my right hon. Friend. It was to this effect:—
Take the figures of revenue for the Death Duties, the Income Tax, and the Stamp Duties. Will it be believed that in the Chancellor's speech these three are estimated to produce this year only £7,000,000? Next year the estimate is £14,000,000. Why should they only yield £7,000,000 this year and £14,000,000 next year, when everybody is living under the 1s. 2d. Income Tax at the present moment? The Super-tax will have to be paid this year nearly as fully as next year. I do not say that there might not be some slight difference, but I do point the attention of the House very seriously to the fact that these three taxes alone are estimated in the full year to give the full amount of money that the Chancellor wants—without Licence Duty, Land Tax, Whisky, Tobacco, or anything else.
There is one other rule to which I should like to refer, and that is that you ought not to put on taxes for any unnecessary purpose. I am of opinion, although I am sure I will not evoke much sympathy from the other side of the House on this matter, that a large amount is being exacted for a totally unnecessary purpose this year. I do not believe it is necessary to spend three millions as an increase on the Navy. There is no than who sits upon the Treasury Bench who is not pledged to the cutting down of expenditure upon armaments. Yet, what are the Government doing? They are making the most inflated speeches everywhere, in this House and out of it, about the necessity of huge expenditure upon armaments. I would like to recall to the attention of the House the prelude to this part of the Budget. I remember very well that tragic day, 16th March last, when my right hon. Friend the First Lord of the Admiralty and the Leader of the Opposition, and then the Prime Minister himself, took part in that Debate, which created, whether intended or not, the greatest scare we have had in this House or in the country. The Leader of the Opposition gave upon that occasion certain definite figures with regard to what ships a certain friendly Power would be able to build by 1911. These figures were accepted by the Government to some extent. We can pin them to these figures, and now, after three months has passed, what has happened?
There is only one man in the Government so far as I know who has kept his head cool with regard to the Naval crisis, and that is the Civil Lord of the Admiralty (Mr. George Lambert). He made a remarkable speech last Tuesday, to which I should like to call the attention of the House. He gave the whole show for the Admiralty away. He said the Admiralty had later information now. He talked about the number of ships that Germany will have ready in 1911, and said that they would have only 11 "Dreadnoughts" instead of the 17, 21 or 25 mentioned by the right hon. Gentleman the Leader of the Opposition. I do not believe 11 will appear. I do not think they will have more than 11 in 1912. At any rate the admission now is general that the German proposals were greatly exaggerated. I believe there has been no acceleration of the pace in Germany at all, and after three months' experience my belief is that not the slightest ground has arisen for taking this expensive step in this matter. Now, as we have only to look for wisdom to the junior Members of the front benches, I want to mention another remarkable speech made by the late Civil Lord. The late Civil Lord was one of the fomentors of the scare, and so he took his pilgrim's staff in hand and went to the country in order to talk about the Navy. He came to Liverpool, and what did he say? At Liverpool he said the people of England had their mind so much occupied with Limericks and pageants that they had no time to think about the Navy. The hon. Gentleman was one of the originators of the Navy scare. The naval scare is dead in this country; it never existed at all in Germany, and at this moment, I am sorry to say, Members of the Government are trying to build it up again inside and outside this House, and especially the Chancellor of the Exchequer. He made a most amazing speech on this question, and as he is more responsible for his words than perhaps any other Minister—[Cries of "Oh, oh"]—well, I mean as regards expenditure—the others may be carried away by their enthusiasm, but the Chancellor of the Exchequer has to find the money, and therefore he ought to be more responsible for Ins words. This is what he said:— these principles and left his followers lying naked on the veldt. This is the prelude which includes my four principles. I believe there has been no economy, and that we will regret the fact one of these days. How shall we face our constituencies again when we shall have to justify an increase of twenty or thirty millions in the national expenditure The only man who, I believe, will be quite brave enough to do that is my right hon. Friend the President of the Board of Trade. He told some friends of his, not in his Constituency now, by the way, in Manchester that he could justify three millions increased expenditure on the Navy, and much more next year. "Justify" is a very large word. We may talk about these things, but that is not justifying them, and I believe Ministers will have great difficulty in justifying this most extravagant expenditure.
Now I turn to the taxes. I have said the Land Tax does not take the shape that I would like. I have been a long time tramping about in Liberalism, and I know exactly what was said about the taxation of land. We said that every municipality should be allowed to levy rates upon land separate from houses. That is the reform we were in favour of, but instead of that we now get a novel and complicated system in the present Finance Bill. I am in favour of the old doctrine of Liberalism. What is it that commends it to me? It is this. Land now enjoys immunity not given to any other kind of property. I wish that to be swept away, and I wish that the local authority should be given power to levy rates upon land in towns, and that the produce should go to relieve the local rates. That is my faith in regard to taxation of land. I am not very particular about method. I know the difficulty of getting things through the House of Commons, and if we had anything approximating to that which we have been asking for I would enthusiastically support it. But my belief is that these crude proposals in the Finance Bill about the taxation of land do not approximate to it. They do a great injustice to the municipality by cheating them of what is rightly theirs. Some of my friends here who are enthusiastically in favour of the proposals in the Budget say the proceeds will go to the municipality, let the taxes go through now, and the municipality will get the benefit next year. There is no provision for giving it to the municipalities in the Bill, which seem to me to be very cumbersome.
It is all very well to get up the cry "unearned increment." I believe every one of us get unearned increment, and like it very much, and if it is to be taxed on one section of the community it ought to be taxed on the other. I now come to the tax on reversions. It is a curious thing. It recalls some of the old doctrine advocated in London, only to be put an end to by the present Prime Minister and the Secretary of State for War. It was an argument in favour of leasehold enfranchisement. What was our case? We said: "Here is poor Jones who has a lease; he builds up a trade and does a good business and increases the value of the property. Then the lease expires, and Brown, the wicked landlord, comes along and takes the house containing the business which Jones has built up." Then what does the Chancellor of the Exchequer do for Jones? He says: "Jones, you have been very badly treated; I will tell you what I will do for you. I will levy a heavy tax upon Brown, and I will walk off with that tax in my own pocket"; and then, turning up his eyes to Heaven, he says: "I thank Thee, Lord, that I am not like other men." If the right hon. Gentleman does but imperfect justice to the municipality, I think in his second tax he does very little justice to the leaseholder. Now let me take the tax upon undeveloped land. I am going to put down an Amendment upon that, and I hope the Chancellor of the Exchequer will look kindly on it. My Amendment will be to leave out "undeveloped." I cannot imagine why undeveloped land alone should be taxed. Undeveloped land is land that is not making money. If I want to tax anything I would like to go where the money is, and therefore I think it would be more equitable to tax all land. On this tax I have a most interesting point that I would like to mention now, as my right hon. Friend is in his place, as I am under the impression he does not quite fully realise what it means. I am going to make a quotation from the discussions we had in Committee upon the 12th May. Upon that occasion the Chancellor of the Exchequer used these words:— same thing yesterday. He took a piece of land worth £170, and he said, "I am only getting 7s. from it," but that is not the way to look at it, because he is really levying 7s. a year, and in order to compare things fairly with one another you must reduce them to the same standard. What is an acre of land with a capital value of £170 worth per annum? It is worth £7 per annum, or, at any rate, that is near enough. When the Chancellor of the Exchequer says he gets 7s., I would remind him that he is getting 1–20th and not 1–480th part. Some of the right hon. Gentleman's supporters know it is 1–20th, and they have known it all along, but they have not corrected him. Therefore, we have 1–480th part in the right hon. Gentleman's speech and 1–20th in the Bill. I think that is a large matter, and the figures ought to be corrected.
With regard to the tax on ungotten minerals, there again the Chancellor of the Exchequer touches a point which I have advocated for years, namely, the taxing of mining royalties; but why "undeveloped" minerals? Why not put a tax on minerals broadly and simply? I cannot understand that at all, but I will say very little about this mysterious tax, because it may be made a little plainer as we go on. Looking at the whole of these proposals, they will take a share of the land of the country from the present owners on behalf of the nation, and I am in favour of land nationalisation. I am also in favour of municipalities acquiring land, but I am in favour of doing all this on one principle, and that is, paying for what you take.
The next tax I will deal with is the one upon licences. When I look at the principle of these Licence Duties I confess I have my doubts, and the views expressed by those who understand the working of this matter have not removed those doubts. What is the principle of these Licence Duties? It is that where you have a cheap licensed premises with a large sale of liquor they will escape comparatively cheaply, but where there is large and expensive premises and a small sale they will be taxed very highly. That is the principle which underlies the proposals of the Government, and I think it is a very doubtful one. I think further revenue ought to be raised out of licences, and I am not against that policy, but I think we should adopt some less questionable principle than the one I have mentioned. The Chancellor of the Exchequer has satisfied me on this point, because he has promised to reconsider it. I think he will do well also to consider whether his definition of the urban area will not require some reconsideration. There are some hard cases there of on-licences, and I associate myself with what has been said by my hon. Friend who has just sat down in regard to grocers' licences. The Chancellor of the Exchequer has, however, given us an absolute pledge that he will remove all grievances with regard to grocers' licences, hotels, and restaurants, and therefore I will pass those points by.
With regard to the Whisky Tax, I have two questions to ask. In the first place, why 3s. 9d.? And in the second place, if 3s. 9d., why £1,600,000? Those two questions have puzzled me ever since the Chancellor of the Exchequer allowed the words "three and ninepence" to fall from his lips. Nothing has ever been proposed like this before. What does the present spirit duty produce? It produces £21,000,000. What part of that is taxed at 3s. 9d.? One-third. You would imagine that with an increase of one-third you would get one-third more revenue, but the Chancellor of the Exchequer places it at £1,600,000 only. I cannot see how he gets that figure. The extra tax is unreasonable in amount, and ought to be reconsidered. I thought perhaps the Chancellor of the Exchequer intended to say 1s. 9d., and if he corrected his tax in that way I think he would get all the revenue he wants, and at the same time he would remove a blot from the, Bill. I do not know that we secure temperance by putting on this heavy tax, because it is more likely to create impoverishment. The people will have spirits at any price, and therefore this heavy tax is more likely to work injustice, and possibly promote illicit production.
I am in favour of the Death Duties and the Income Tax, and, subject to some further consideration which the Chancellor of the Exchequer has promised, I am also in favour of the increase in the Stamp Duties. I think that is a right way to raise money. I have no objection to the Chancellor of the Exchequer taking what he requires when he can make out a good case. I would suggest that he might very well cut out some "Dreadnoughts" and take off the taxation in the quarters I have indicated.
The Chancellor of the Exchequer may feel that I have not been assisting him very much in the criticisms I have made. All I have to say is, there is not a point I nave touched upon that the Chancellor, in the month of May, did not practically promise to reconsider and put right. Therefore I think I have assisted my right hon. Friend by stating my views, perhaps somewhat more candidly than some hon. Members sitting on the Ministerial Benches. I have discharged my duty not in any unkind spirit. I have voted for the Bill, and I am going to vote for the Second Reading to-night. Within reasonable limits I shall continue to give this Bill all the assistance I can. The position of the House in considering this mighty Bill is like a sculptor's studio where a beautiful statue is being made out of a large block of marble. Great chips and blocks of marble have to be knocked off—perhaps a quarter or one-third of the whole may have to disappear. As this process goes on the statue itself becomes more lifelike and beautiful under the skill of the sculptor. I earnestly hope that when we have finished with this Budget we shall have produced something which will reflect as much credit upon the skill of the Chancellor of the Exchequer and on the wisdom of this Parliament as the greatest masterpiece of antiquity does upon the man who produced it.
This Bill will have a very serious and detrimental effect on the manufacturing industry of the country. As a manufacturer, I think I may claim to speak with some knowledge and experience on this Question. The great increase in indirect taxation—which the hon. Member who has just sat down placed at £17,000,000 this year and £14,000,000 next year—is a very heavy increase indeed, and presses very heavily on the manufacturing industries, particularly those whose mills and machinery are used for the production of manufactured articles. The result of this very heavy increase means a largely increased permanent annual expenditure, which adds very considerably to the cost of production, and we are finding ourselves in the position that we are no longer able to manufacture cheaply and economically. Burdens are being placed on us, and they are taking away all those advantages which we are supposed to derive from being a free-importing country. Whatever benefits we may get from free imports are nullified by the very heavy increase in taxation which is being placed upon us. I would like to associate myself with what has been said about the hon. Member for Preston, and the very able way he protested against the alarming increase of the expenditure of the country, an increase which he pointed out was £10,000,000 in four years by a Government pledged to, economy. I would like to point to the-magnitude of the increase in local expenditure. I venture to think that in trying to estimate the effect these Budget proposals will have on the trade and commerce of the country we must take local expenditure into consideration, because local expenditure, or a very large proportion of it, is paid by the local industries. That means again an increase in working expenses at the cost of production. I quite admit that the Government are not responsible, or are not altogether responsible; for the increase in local expenditure, but I do say that to a considerable extent they are responsible, because since this Government came into power not only much of their legislation, but a great deal of their promised legislation, and also their administration, is placing a very large additional burden on local authorities. We all know the outcry that is being made by local authorities and the alarming demands they are making for a largely increased grant from the Imperial funds. If I give the figures of this increase the House will realise how serious it is. In 1899 the local expenditure of Great Britain and Ireland was £144,000,000. I have only the figures for 1905–6, and I suppose that everyone will admit that they are now more than that. In the year 1905–6 they rose to £162,000,000, and showed an advance of £21,000,000 in seven years. Taking also into account the heavy increase in Imperial expenditure, this is proving a very serious burden to the country. Looking at the Budget proposals as a textile manufacturer, I think their effect will in many cases be disastrous. We have to face hostile tariffs—tariffs which in many cases are prohibitive, and which have taken away many of our staple trades. We have to face a very serious and a very alarming increase in competition with our own markets by foreigners. Not only that, but what is perhaps a more serious factor—and I speak with some experience—we are finding it more and more difficult as manufacturers to-day to hold our own in the neutral markets of the world. When we take that into consideration on the one hand, and the alarming increase in the cost of production on the other, I, for one, declare that our present fiscal system has outlived its usefulness. The Chancellor of the Exchequer asked what are the alternative proposals. I think the Chancellor of the Exchequer knows and the country knows. The alternative is the fiscal policy of the Leader of the Opposition. I do not want to argue that point now, but I shall have something to say upon it hereafter. I am convinced that the only alternative to Socialism is Tariff Reform, and I am of opinion that our alternative of Tariff Reform will more fairly meet the financial demands of the country and tend more to Imperial federation than the proposals of this Budget.
Last year hon. Members on these benches were in favour of the Budget. This year every Member on these benches will vote against the Budget, and not only will every Member on these benches vote against the Budget, nearly every Member who represents Unionist constituents in Ireland will vote against it. I do not care to dwell on the political aspect of the question. But I must be allowed to make this observation: This Budget is proposed as a democratic Budget, and is supported by a democratic majority. I must acknowledge that on the whole it is a great democratic Budget. We on these Benches are as much a democratic party as any democratic party in this House. We are as much a Labour party as my hon. Friends below me. I must regard it as unfortunate that some of the proposals of this Bill are calculated to separate the Irish Members from the Labour Members. What is our objection to this Budget? We do not object to the Budget as a whole. That has been stated over and over again from these Benches, and particularly by my hon. Friend the Member for Waterford. Most of us—nine-tenths of us—are even ardent supporters of the Budget. So far as the Budget throws the burden of taxation on the broad shoulders of the rich, and, therefore, relieves the burden of the poor we are in favour of it. But our position is that, while it relieves the poor in England, and justly relieves them, as regards Ireland the burden is transferred from the rich country of England to the poor country of Ireland. I regard that as unjust. It is ungenerous because it is the rich country that relieves itself from burden at the expense of the poor country. It is against the verdict of a court established by Englishmen, and the appeal is made by the defendant in a court of which the Englishman is the sole judge.
My remarks will be devoted to the financial relations between England and Ireland. I have often asked myself why it is that so much injustice is so frequently done to Ireland by Parliaments composed of different parties. I am sure that it is not due to ill-will. I have come to the conclusion that it is largely due to the fact that the conditions of Ireland and the conditions of England are so absolutely different that it is impossible to frame an Act of Parliament for both countries which will not have absolutely different effects. This is largely increased by the fact that different things in Ireland and England are often called by the same name. The Irish farmer is regarded in the same light as you regard the English farmer. A large amount of the injustice to Ireland in the Budget is done by the liquor proposals, for although the public-houses in Ireland and in England are called by the same name, there is a great difference between them. In Ireland, for instance, there is no such thing as a tied house. Throughout the length and breadth of Ireland there is not a single house which is obliged to buy its beer from any particular brewery, or its spirits from any particular distillery. Throughout Ireland there is scarcely a publican who is not the owner of his public-house. There is a further difference in Ireland—by law; by the dicta of the highest courts of the country—the public-house owner has a freehold in his property, only to be destroyed by misconduct. In England there is the annual licence. Furthermore, in Ireland we have laws already in existence—such as I may, in some respects, recommend for adoption in England—by which a reduction of licensed premises is going on steadily, and going on without injustice to present owners. I suppose very few English people are aware of the fact that by small Bills passed through this House no new licence can be created in Ireland without the extinction of two existing licences, and the people of Ireland, being a reasonable and kindly people and free from fads and fanaticism, are quietly solving the question of the public-houses without doing any injustice to any man who has vested interests. Now what is the effect of the Budget of my right hon. Friend on that question? It establishes high licences in Ireland which is quite a different thing to high licences in England. In Ireland the public-houses are mostly small. Some people think there are too many. I am not disposed to deny that; I think there are too many. I think many of them might be gradually and slowly got rid of with justice to existing interests and with advantage to the Irish community. The small public-house in Ireland is the result of the smallness of the population and the smallness of the village and the towns, and the result of this is that the raising of licences in Ireland will have quite different results to what it will have in England. The minimum licence is paid by some 7,000 odd public-houses, and of these 7,000 odd most of them are in Ireland alone. But the fact that they had these small public-houses in Ireland (and there are more of them than there are in England) caused the increase in the licence duty to affect publicans in Ireland more than a similar increase in the licences in England. If we look at some of the small towns in Ireland we shall see how this acts. For instance, in Athy the population is 3,899, and the result is that the licence rises from £4 10s. to £10. It is almost a decree of bankruptcy to the small publican of Clonmel to raise the licence from £4 10s. a year to £20. Then I come to a favourite subject of mine, and that is the grocer's licence. In my ignorance of Ireland—I have lived nearly 40 years out of the country—I was under the impression that the mixed trade is rather an English than an Irish institution. I know of great magazines scattered over England where they have haberdashery in one quarter of the building, furniture in another, and a wine and spirit department in another. I thought that was rather an English than an Irish characteristic. Therefore I had thought that the proposal of the Budget which taxed the premises, not on the assessment of the particular portion given over to the sale of liquors, but on the assessment of the whole building, is a tax which will weigh more in England than in Ireland. As a matter of fact, I find that mixed trading is the rule in Ireland and not the exception. A house in Ireland is not simply occupied for the sale of liquors. I believe that 96 per cent. of the houses in Ireland which sells liquors are houses that do mixed trade and in which the sale of liquor is only a small section of the trade done there. In Belfast, I am told, the unfortunate people who have grocers' licences are in a state of panic, because they see themselves face to face with bankruptcy through this and another provision of the Budget, the provision which interferes with the amount of liquor in bottle which the owner of this class of licence is allowed to sell. England is a comparatively rich country as compared with Ireland, and there the whisky is bought by the bottle, and by law it can only be bought by bottle, but in Ireland it is bought in half-bottles and quarter-bottles, sometimes in a bottle with a cork and sometimes in one without a cork, and the result is that if the provisions of this Budget are applied to these grocers' licences in Ireland it will mean their ruin and the extinction of the business of many of them. An hon. Member above the Gangway reminds me that the same argument applies to Scotland.
We supported the Budget of the late Chancellor of the Exchequer because it was so much a removal of direct taxation upon articles consumed by the poor. Now, we think it is only fair to ask that the rough, coarse, strong tobacco which is consumed by the people of Ireland—tobacco which I have never seen used in this country, indeed I do not know if it can be consumed here—should have placed upon it a different kind of taxation from the taxation put upon the finer kinds of tobacco smoked by wealthier people. I remember the first day I was in London going on a Thames steamboat, and I was astonished to see a man, whose means of livelihood was selling sherbet out of little tin vessels, take out of his pocket a small packet of bird's-eye tobacco. I had never seen a poor man in Ireland smoking anything but coarse, cheap and strong twist, and that was my first indication of the superior wealth of England. I will say only a few words on the question of stamps. I am bound to make an admission to my right hon. Friend. When he first made his proposals it was imagined that the stamp duty would apply in Ireland to those transfers of land which are going on on so large a scale there with such magnificent results. That, I am glad to say, is not the case. There are, however, some transfers in Ireland which deserve consideration. There is the transfer of land by a man who, having purchased it, reconveys it to other men who are thrifty of habit and sturdy in character. I venture to suggest that that is a desirable transfer of land, for one of the worst things of the system of land in Ireland in the past has been that it has been retained in the hands of those who have no strength of character and no capital with which to develop it. The sooner that worthless holders of that type are removed from Ireland the better it will be for that country. I am afraid that my right hon. Friend is interfering with that process. I said we voted for the Budget of the late Chancellor of the Exchequer, and we are going to vote against the present Budget. The main reason why we voted for the Budget of the late Chancellor of the Exchequer was that it made a big diminution of direct taxation especially in the case of Ireland—a diminution of as much as £400,000. But this Budget not only increases the general taxation of Ireland, it specially increases it in the form of indirect taxation, and that is an aggravation of its defects. This taxation, as I will show in a moment, has the effect of leaving the burdens on the rich in Ireland at pretty much the same level, while it increases the burdens upon the poor. I have some figures here which I think will startle the House. I propose to take the proportion of new taxation imposed by this Budget on Ireland. The addition on licences will give 4 per cent., or one-twenty-fifth of the whole. Spirits will produce 9·4 per cent., or one-eleventh. These are, I may remark, the calculations of the Chancellor of the Exchequer himself. Tobacco will pay 10·5 per cent., or one-tenth; and stamps will pay 4 per cent., or one-twenty-fifth of the whole. Now I come to the remainder of the taxes. The Tax on Land, the Super-tax, the Death Duties, and the Estate Duties: these are essentially taxes on the well-to-do. They pay only 2·2 per cent. of the additional taxation, or one-forty-sixth of the whole. Therefore one of the counts in my indictment is the enormous disproportion between direct and indirect taxation.
Next I am going to speak of whisky, not as a beverage, but as a manufacture. I know I shall receive some self-complacent sneers when I speak of it in that sense. I may be told it is a poison, and that the less it is distributed the better. I will be told that the less whisky that is drunk in Ireland and in other parts of the world the better. That may be so, but may I remark that there is a great deal less whisky drunk in Ireland now than there used to be, and that the diminution of drinking in Ireland is being brought about by proper means. We have among Catholics in Ireland what are called missions, which I may compare with revivals among Protestants in England. There was such a mission in Belfast a few weeks ago, and no fewer than 22,000 people took the pledge. I hope that a fair proportion of them will keep it. Hon. Members laugh. I look at these things, I am afraid, as a man of the world rather than as a fanatic. Again I admit that to talk of whisky as an industry excites some self-complacent lofty sneers. I find it rather difficult to be patient under that attitude. There is a race which in some of its history bears some analogy to the history of Ireland. I refer to the Jewish race. In Russia the Jews in certain parts of the country are kept out of every profession and every office. They are kept out of the higher positions in the army and navy and in diplomacy. As a result, they often become the sellers of liquor, because it is practically the only business open to them. Is it a proper thing to blame us for speaking of and defining whisky as a manufacture in Ireland when every other manufacture in that country has been destroyed by your policy? As a matter of fact, whisky manufactured in Ireland has a far larger sale outside Ireland than inside it. Only about one-third of the quantity of Irish whisky produced in Ireland is consumed in that country. By the way, I may remark here upon a rather grim joke committed by my right hon. Friend in one of the sub-sections of this Budget. It is rather an audacious joke, and one would never think that under its solemn circumlocution and its somewhat babu English there lies so much delicate irony. It is to be found in sub-clause 3 of clause 61, which provides that
My right hon. Friend did not allude to a question upon which he can speak much better than I, and that is the question of the financial relations between England and Ireland. I know that every Irishman is expected to apologise when he utters the words "financial relations." I am not going to do so. I am sure that a large number of the Members of this House are under the impression that this is rather a prolonged Irish joke. They think we do not mean what we say, and that it is a sort of an address of bunkum which we feel it necessary to deliver annually to our Constituents without any serious meaning whatever behind it. That is not our view. The financial relations between England and Ireland have to us a very serious and even a tragic meaning, and the import is becoming more serious every day. The expenditure of this country is going up by leaps and bounds. We get no promise whatever of any reduction, but every prospect of an enormous steady and gigantic increase of the expenditure of the country. So far as the expenditure of this country is concerned, and which is paid by this country, I do not interfere. That is its affair. But a Commission mainly composed of Englishmen appointed by a Liberal Government so far back as 1896 has declared that Ireland is over-taxed by 2¾ millions, yet our taxes instead of being reduced are going up. What is the defence given? It is most extraordinary. We are told that while we were paying one-eleventh or one-sixteenth formerly, we are now paying one-twentieth, and therefore the argument that our proportion is diminishing every day. I will go back to Mr. Childers' illustration, where the man with £100 a year lived in a house with a man who had £700 a year, and it was agreed that he should only pay £1 for every £7 that the other man paid. If they lived at the rate of £200 a year, the man with £100 could afford to pay £1 to every £7 of the other; but when the expenditure rose the poor man could not afford to pay his proportion. In that case, when the expenditure went up, and the proportion was £1 to £14, £1 to £21, or £1 to £42, although the proportion of the poor man is smaller each time, the time comes when he has paid away all his money. That is the case with Ireland, and we are paying away all our money in taxation, and therefore this argument is of a most fallacious and stupid character.
Supposing things develop along the lines on which they seem to be develop- ing; we have a very large expenditure on the Army and also on the Navy. Supposing Lord Roberts was a Member of the next Government. Some hon. Friend of mine above the Gangway says he hopes he will be, and I express no opinion upon that, though I have some general dislike to soldiers as politicians, and I do not think they have ever been successful in that capacity. Supposing Lord Roberts was a Member of the next Government, and he tried to transform this farce and unreality of an Army into a reality, that will add a few more millions to the national expenditure. Supposing the Navy League and the Civil Lord of the Admiralty in the late Administration are the inspiring influences of the next Government, what will happen? The number of "Dreadnoughts" which we then shall have to pay for is almost beyond human calculation. That again is the business of England, if England will only pay for them; but then we have to pay for them as well, and our proportion will probably then be one-thirtieth of the general expenditure in the place of one-eleventh. But by the time that we have got to one-thirtieth of a 200-million Budget one can imagine the state of the finances in Ireland. This may be taken as being an avowal on our part and on the part of the Irish people of a lack of high Imperial patriotism. These "Dreadnoughts," it is said, are as necessary for the protection of the commerce of Ireland as they are for the commerce of England. That almost dazzling fleet of richly-laden argosies which leaves the shores of the Liffey every day of the year to carry the abounding manufactures with which Ireland teems to every part of the world—how can they continue to exist if we had not "Dreadnoughts" to protect them? Candidly I do not want this German invasion of Ireland. I have no desire for that, because I have been in Alsace and Lorraine, and the German rule there was of a kind which I should expressly dislike to live under in Ireland. But I make this qualification in regard to invasion. I would regard it, except as to my internal national aspirations, as a far less dangerous enemy than the soft spoken tax-gatherer who comes to make Ireland pay far more than she can afford for those ships and armament which are needed for the protection of English commerce, and which certainly are not needed by the commerce of Ireland.
We have in Ireland, unfortunately, very different things to think of to "Dread- noughts" and the dangers of a German invasion. The taxable capacity of our country, while our taxes are increasing, is not going up. I would compare the position of the two countries, and I ask the attention of the House seriously to these figures. Since 1894, when this Financial Relations Commission was appointed, the population of England has gone up by 5½ millions. But the population of Ireland has been decreased by 200,000—you have 200,000 fewer to pay more money and more taxes. But here is a more striking figure in regard to the diminution of Ireland. It is a striking effect of English rule. I will take the total wealth of Great Britain and Ireland since 1893, a year before this Commission was appointed. The gross assessment for Income Tax in England has gone up from 673 millions to 906 millions in 1908, an increase, if I am right, of nearly a third. I congratulate England on the growth of her wealth. I have nothing to say in criticism in regard to it, and certainly nothing to say but in satisfaction in regard to the growth of the wealth of this or any other country. But I have a right to compare it with the state of things in my own country at a time when she is again being overtaxed. In 1893 the assessment for Ireland was thirty-eight millions, and it is practically at that figure now. Consequently, you have this extraordinary and incredible contradiction, that you have a stationary income, a decreasing population, and increased taxation. But it is asked, where is our Imperial patriotism? It is almost cant for Englishmen to address such words to Irishmen. I would like to put this concretely; I would like one of the Imperial patriots on either side of this House to come down to the town of Athy. Our complaint of this taxation is not merely that it is more than we can bear. It is not merely that it is given for Imperial purposes, of which we do not approve. Our great objection is that it is diverted from Irish sources and Irish objects. I go down to Athy, and I imagine the late Civil Lord of the Admiralty, or even my right hon. Friend the Chancellor of the Exchequer, addressing the head of a family in a small house in Athy. The Barrow has had one of its usual inundations. The man's furniture is floating along the floor. His little household goods are there floating. His property is destroyed for the time being. His business is suspended for the time being. A few thousands—£100,000 or £150,000, one- fourth, one-fifth, or one-sixth of the additional money, according to his own calculation, which my right hon. Friend is taking from Ireland, one-fifth or one-sixth of that would settle the whole question of arterial drainage in Ireland, not only in the South, but in the North. Take the case even of a Member for a representative Ulster constituency in the Unionist interest going down on the River Ban at the time of an inundation. He would be addressed in the same way as I am going to use on behalf of the man of Athy. The man would say, "What is the use of your talking to me about German invasion, 'Dreadnoughts,' and German balloons," and all those other figments of a scare, which, I think, is one of the most humiliating to Englishmen which I have ever known in my time. What is the use of your talking about these things? I do not think the German would think it worth his while to invade the town of Athy. Blucher, when he looked over London, said what a fine town it was to sack, but he would not say that down at Athy, and you are asking them to pay out of their small income for the purpose of meeting the expenditure of this great Empire and country. The man of Athy would say, "I want the money to save my property; I want the money to save my house, and, above all, to save the health of my wife and children. Do not talk to me about the thin red line of the English Army. I think more of the thin white line of 12,000 people who yearly, through consumption, help to fill the graveyard."
This Budget will be opposed by the Members from Ireland in a body. It would have been opposed by Mr. Gladstone if he were in this House, so far as I can understand. I am now going to address to my right hon. Friend words from the grave. Mr. Morley, after the Royal Commission had reported on the financial Relations between England and Ireland, paid a visit to Mr. Gladstone to see what he had to say about the question, and he paid a visit to the right man. I honour the memory of Mr. Gladstone, though I regret that the was the first man to establish a whisky tax in Ireland in 1853, and here is what Mr. Gladstone said:— tals of every Liberal Chancellor of the Exchequer:—
We have a friendly Government in many respects in office, which has done many things already for Ireland, and we have a friendly Chancellor of the Exchequer. We have not on the benches above the Gangway the generous figure of Sir Edward Clarke, who always stood by us on this question. We have here a democratic Parliament, consisting mainly of men who are in full accord with our national aspirations and aims, and who would desire, if they could, to do full justice to Ireland, and yet they will all vote for this Budget. What is the moral which hon. Gentlemen above the Gangway who come from Ireland ought to take? This Budget has united the most discordant elements in Ire- land—the distiller and the teetotaler. The Petition from the Corporation of Dublin to-day was presented by the Lord Mayor, who is a life teetotaler. It has united Liberal and Conservative, Unionist and Nationalist, North and South. May I not say to them that the moral is that if they ever want to get justice for their country they can only do it when, in a self-governed Ireland, all our bitter and broad internal differences settled, we shall be able to stand together for the return of prosperity to our beloved land.
I do not propose to deal with the speech to which we have just listened from the hon. Gentleman who so eloquently expounded the injury which he conceives this Budget is likely to do to Ireland. With much that he said, I entirely agree, with much I profoundly differ, but he must fight his own quarrel with the Government, and I do not think either he or the House will thank me for intervening in the domestic differences between the representatives of Ireland and the English Home Rulers. The hon. Gentleman has avowed his undying opposition to this Budget, and for my own part I hope that vow will be fully accomplished, but I have my suspicions. I think the case made in such vehement terms is a case which has a substantial basis. I do not think, however, it will be enough to induce hon. Gentlemen below the Gangway seriously to embarrass at any stage of their proceedings His Majesty's Government, and indeed I noticed that the Chancellor of the Exchequer in his speech yesterday did not even refer to the Irish grievance.
The right hon. Gentleman the Member for Islington (Mr. Lough) reiterated to-day the criticism which has been made from every quarter of the House that the Chancellor of the Exchequer has utterly miscalculated the yield of the taxes he is proposing. That charge was made against him by my right hon. Friend (Mr. Austen Chamberlain). It has been repeated and emphasised by almost every financial authority in the House, and to this moment we have not had the smallest attempt at a reply. The right hon. Gentleman, I believe, admits that the yield is going to be far in excess of the needs of the year, and in making that admission he departs absolutely from the canon laid down by the Prime Minister when Chancellor of the Exchequer, when he said it was an accepted canon of British finance that in the financial pro- posals of the year you should provide for the needs of the year. The Chancellor of the Exchequer has not merely provided for the needs of the year. He is providing a perfectly unknown and indefinite amount for equally unknown and indefinite schemes. He shadows in the vaguest outline plans of universal beneficence and provides in the Budget not for any definite expenditure under those plans, but for some expenditure far in excess of anything of which he has given us notice, and which provides an amount of money far in excess of any Estimate which he has so far condescended to lay upon the Table of the House. I do not mean to press that point further. Perhaps the Prime Minister will deal with it. But in not dealing with it the Chancellor of the Exchequer was perfectly consistent. He followed out the practice which now appears to be a settled habit of his, which is, when he is challenged with grave and important matters by serious arguments, to make extremely interesting and amusing speeches, which have, so far as I can see, only one serious defect, that they never attempt to deal with the points which have been made. I think, before I sit down, I shall make, at all events, that matter clear, and I shall point out that the arguments which have been urged against the Budget have received nothing that deserves the name of a reply.
The Budget itself seems to me to fall naturally under three heads, and under each of them, I think, it is open to very grave and, so far, wholly unanswered criticism. The first head will be indirect taxation, the second branch of the Budget deals with an addition to the burden on all income and all property, without singling out for exceptional treatment any one form of property rather than another, and the third, and in some respects perhaps the mist controversial part of the Budget, is that which singles out for special, I will not say vindictive, treatment particular kinds of property. These are the three pounds of topics on each of which the Government has been attacked, on each of which the Government ought to make a defence, and on some of which, so far, they have made a defence. The case with regard to indirect taxation is very simple. The Chancellor of the Exchequer told us in his Budget speech, and told us rightly, that in the view of the Government, when so great an addition was to be made to the general taxation of the country, it was right and proper now that all classes in the community have so large a share in the control of our affairs, that they should make their contribution to the general needs. That is a very sound proposition. Is it a proposition which is carried into effect by the Budget? I was surprised to hear the hon. Member for Preston say, in his most interesting contribution to the Debate, that these indirect taxes were the one part of the Budget of which he approved, because he said they did not touch the necessaries of life. We use the word "necessaries," I think, rightly, in a very loose manner in our Debates, and it must be used loosely. The only really precise and accurate use of the word in this connection, I suppose, would refer to a necessity based upon what I might call purely physiological considerations—that is, a necessity on the physiological ground which is required to give the body the necessary warmth and to provide it with the necessary sustenance, no matter how these two objects were obtained, and no matter by what methods the end was gained.
We cannot use it in that sense. I remember my right hon. Friend near me, in a speech last year, said that in his opinion tea was a necessity. I think tea is a necessity in the loose manner in which we use the word. But no one can describe that with any strictness as a necessary which was never used by the populations who have lived in Europe for many thousands of years till 100 years ago or less. You cannot call that a necessary in any narrow sense of the word. That point has a real reference to the contention of the Government that they are putting taxation upon every class in the community. I say they are doing nothing of the kind. I do not believe there is any way of putting taxation on every class in the corn-Inanity unless you adopt the method of the hon. Member for Preston and have a universal Income Tax, or unless you do tax, however slightly, some of the things which we rightly call necessaries of life, some things which are habitually used by every class of the community. There is no other way by which every class of the community can be made to contribute unless the taxation is in the form suggested by the hon. Gentleman, or unless something of universal consumption is touched, however slightly. What are you doing? You are taxing not the general mass of the community, but Scotchmen and Irishmen. At any rate, that is true so far as the Whisky Tax is concerned. It is not true as far as the Tobacco Duty is concerned. There you are, at all events, equally taxing all the three parts of the United Kingdom, but you are not equally taxing all members of the United Kingdom, because a large number of them do not smoke at all, and when they do not smoke they will wholly escape any contribution under the indirect taxation proposed by the Government. The Government have not really carried out in the first part of their Budget the professions which they themselves have made. They are greatly adding to the general expenditure; they are putting no portion of that additional expenditure upon certain very large and very important sections of the community. I now come to what I called the second great branch of the Budget, and that relates to the increase in the Death Duties and in the Super-tax. I have told the House before that, in my opinion, it is absolutely impossible to resist the argument in favour of what was called graduation in the higher incomes. However you get that graduation, it is, in my opinion, absolutely necessary, and I resent the suggestion that the opposition made in this quarter of the House to the Budget of the Government is opposition of the rich who dislike taxation, and wish to throw it on the shoulders of other people. That is not my attitude, as I shall point out directly. There are some extremely hard and cruel cases under this branch of the Budget, but I admit perfectly that in the financial situation such as we are now in the rich cannot expect, and they ought not to expect, to escape paying something in the nature of a graduation addition to the money they already give in the form of taxation. That I grant, and I only look with suspicion at these taxes, not because I think they are a burden on the rich, but because I am afraid they are in the first place not going to produce the results to the Exchequer which the Chancellor of the Exchequer anticipates, and because I am seriously afraid they are going to do injury not only to those who pay the taxes, but to other and less prosperous members of the community.
I quite agree that it is very difficult to prove that capital is going abroad in undue proportion—capital in the ordinary way in which that phrase is used. But surely it is a matter of perfect notoriety that securities are going abroad every day by millions. I do not think that can be disputed. Up to a comparatively recent time London was supposed to be the securest place, not merely in which the subjects of the King could keep their securities, title deeds, stocks and shares, but where everybody else could keep them. Foreigners of all kinds and of all countries used to send in large masses their stocks and shares to the great financial houses in London for security, and, I believe, that was of enormous advantage to London as a financial centre. It is very difficult to say precisely in pounds, shillings, and pence what that advantage amounts to, but will any man—I am speaking of those thoroughly acquainted with business affairs—say, whatever his opinions may be on the Budget, that it is not a loss to London that instead of being a place to which securities naturally flow it is a place from which securities are daily flowing? The Government met this argument by saying, Where will they go? Will they go to Germany or to France? It was the Chancellor of the Exchequer who went the length of saying they cannot go to Belgium, because the opening for industrial investment is so small there. But surely that is a profound error. I believe they do go to Belgium and Holland and, in a far larger measure, to the United States. They do not go there necessarily for investment, but for security. [Laughter.] Does anybody rebut that statement by laughing? I do not think anyone who has made inquiry will doubt it. Of course, no one anticipates that the Chancellor of the Exchequer is going to break into the Bank of England and appropriate the securities. But you will find that the sort of legislation now being proposed does alarm and frighten the minds of those who can remove their securities, and the result is they are removing them. I think it is a misfortune, and I greatly regret it. When I am told there is no place where they can go to and escape taxation I observe there are two great portions of this Empire where there is no fear of Income Tax—Canada and India—and high authorities have told me that one of the results of this kind of legislation will be that formidable rivals will grow up in India to some of your staple industries at home, fed by capital which, if left to itself, will find its natural use in this country. I am afraid that is so. Certainly the Government have never suggested any argument which would make me doubt that the prophets whose evil prophecies I am quoting have in any sense exaggerated the case. That I admit. Those are the fears, and those only, which make me resist the Super-tax, regarded in its broader aspects. But it is a great misfortune that you have got to do anything which would be so bitterly resented by the taxpayer as an inquisition into the whole of a man's financial affairs. It is a bad thing to have to collect the tax in such a way as to be odious to the person who pays. The hon. Member for Preston (Mr. Harold Cox) and the hon. Member for Paddington (Mr. Chiozza Money) are always telling us they would like to see all taxes raised in the form of Income Tax, and that they rather like taxation being levied in a disagreeable way to the person who has to pay it, because it makes him interested in economical government. I do not take that view. I believe myself that the public would rather pay indirect taxes, even if, in the mere tabulated form, they are less economic than if you adopt the more economic system which the hon. Gentleman suggests. However that may be, no one can doubt that you make the Income Tax odious by the fact that it is associated now with this inquisition into property. I think that is a great misfortune. But I am utterly unable to see how it is to be avoided. I do not like to blame the Government unduly. I cannot suggest a better method of doing it, but I am perfectly confident we shall live to regret the time when this admirable financial weapon, which the Income Tax has hitherto given us, has blunted its edge and injured itself by over-use, depriving ourselves in a moment when we may most require it of the financial assistance it has always given us with unfailing regularity in time of need. I do not think that on these two first heads of the Budget we have received anything like an approach to an answer from the Government. If that is true of the first and second heads into which I have divided the Budget, it is doubly true of the third and last branch, namely, the proposal to put special taxes on particular kinds of property. The first kind of property taxed in this preposterous manner is that of the liquor licence holders. What defence have the Government made of the licensing proposals? So far as I know, they have made none. The Chancellor of the Exchequer was extremely jocose yesterday over what he called the inconsistent attacks made upon him with regard to the Licence Duties. He said some Gentleman accused him of ruining the brewer, while other Gentlemen—meaning myself, I think, in this case—accused him of endowing him. He says: "If these double attacks are made, and if they are inconsistent, may not my course be, after all, right?" The person who gave rise to that sort of criticism in the first instance was the right hon. Gentleman himself. When he quotes us as criticising the Budget from these two inconsistent points of view, I would remind him it is because he has presented the Budget in two inconsistent manners, and that both are bad. It was he who told us in his opening speech he did not propose to add anything to the price of beer. That was the original Budget contention. He said nothing is added to the price of beer, and that the whole cost of the licence falls on the licence-holders, that if they cannot put it on the consumer they would have to bear it themselves. We pointed out, and the hon. Member for the Scotland division of Liverpool has pointed out, that if they bore it themselves they would be ruined, or large numbers of them. I have myself ventured to bring forward facts, so far uncontradicted, and I believe incapable of contradiction, which show both with regard to the owners of licensed premises who are brewers or brewing companies, and still more with regard to licence holders who have what are called free houses, the weight of your taxation is absolutely ruinous and crushing. That is the first criticism based on the statement that nothing is to be put on the taxpayer. The Government apparently found that an embarrassing position, and they immediately and entirely changed their front, and when the Prime Minister came to reply rather early in our discussion he said, "Oh, you need not trouble your head about the brewers. They will put it on the consumer. They will do extremely well. I know them. They will get it, and whoever suffers they will not." Quite so; but that is not the Chancellor of the Exchequer's original view. It is utterly inconsistent with his original view. However, the Chancellor of the Exchequer having listened to this defence, thought he would better it, and he not only admitted that the public would pay, but he told us they would pay to the tune of £20,000,000. Now these are two quite inconsistent defences of this part of the Budget. May I ask him if it is inconsistent to say that we both object to a tax which is going to ruin the licence holder, if it does ruin him, and which is going to endow the licence holder, if it does endow him? Whichever line you take, you make yourselves responsible for legislation on this point which is abso- lutely indefensible. I think it is a monstrous injustice to ruin the trade, and I think it is a most iniquitous burden on the general taxpayer to put £20,000,000 into the pockets of the trade. Whichever line you take, it is clear that this tax is quite indefensible. I do not understand, therefore, why the Chancellor of the Exchequer makes himself so merry over these two alternatives. They are his alternatives. I do not care on which of them he impales himself. He will find them equally sharp and the wound equally painful. That is not really the only criticism passed upon his licensing proposals to which no attempt at an answer has been given as yet. We assert, not merely that these taxes on the licences are unjust if they fall upon the licence-holder, or preposterous if they fall upon the public. We also say that they are extremely unequal as between different branches of the trade which sell to the public, whether they be full licence-holders or holders of ante-69 beerhouses, or grocers, or clubs. There is no attempt to co-ordinate all these forms of taxation into a consistent, defensible, and coherent whole, and the Chancellor of the Exchequer has made no effort to tell us—he is apparently perfectly happy as regards his proposals—he has never told us how he is going to remove the gross injustice in the case of large hotels, or how he is going to reconcile the inequalities between the various forms of dealers in alcoholic liquors. Therefore I venture to say, upon this particular tax, upon this particular kind of property, that the proposals of the Government so far stand condemned by arguments that are perfectly plain and perfectly simple, which have been reiterated, and re-iterated by hon. Gentlemen on both sides of the House, and to which the Chancellor of the Exchequer has never attempted to reply except in the form of a rather indifferent jest. One word more before I leave the licences.
The Chancellor of the Exchequer was extremely indignant yesterday because my hon. Friend (Mr. Bonar Law), who made from this Bench so admirable a speech to the House upon the Budget generally, accused the right hon. Gentleman of being vindictive. What was the reply of the right hon. Gentleman? "Vindictive! Look at what we are doing for agricultural property." I am quite ready to admit that the statement of the Chancellor of the Exchequer with regard to agriculture shows a great endeavour after fairness with regard to the present burdens that are thrown on agriculture. I quite agree that he made a statement on that subject with which I think those who agree with him on that point have reason to be grateful. But there are two things I have to say. I am not really quite sure even now what his proposals with regard to agricultural land are. He says that they are entirely favourable. He says that the Budget does much, and is going to do more, when he has had an opportunity, as he will have an opportunity, of amending it. I am quite ready to accept those promises, but he will allow me to say that the obscurity thrown over the whole of this question of the taxation of land owing to the drafting of his Bill is perfectly bewildering. What the Chancellor of the Exchequer is dealing with, of course, is land value. How many meanings does he attach to land values in his Bill? In the first place, there is a thing called total value. I do not think that requires much explanation. Then there are a lot of things which he calls site value. There is the value of building land in the present year, which may mean, as far as I can discover, land divested of trees and buildings less the cost of so divesting it. Then there is the site value of agricultural land, which is quite a different thing, and has no logical connection with the other. In fact, it appears to me, though I believe conceived with a benevolent intention, to be utterly illogical and almost unmeaning. The site value of agricultural land means what everybody else calls total value, land, houses, drains, and hedges. [Cries of "No."]
With improvements.
That is the second form of site value, which is in addition to the first form which applied to agricultural land. There is another meaning of site value, also applicable to agricultural land—the site value of agricultural land when it comes to be valued for the purposes of income. That is quite a different meaning of site value from the first agricultural site value and the second definition of site value which I have just given the House, because the site value for the purposes of income means the site value which I have just given reduced as near to the site value for building as the Commissioners may propose. That really is a most embarrassing state of things. Then there is still another meaning for site value—what is called full site value. Full site value, as far as I can discover, is site value of building land less the cost in- volved in making it fit for building. I think there are more meanings, but it is impossible, and I do not mean to go into them in detail, It is almost impossible to understand, what has never been explained to us, the meaning of these various technical terms, all entirely new, none of them consistent, so far as I can see, and none of them springing from any coherent view as to what landed property and the needs of landed properties really consist in. I am very anxious not to deal with technical details, and I will proceed very concisely to deal with what I conceive to be the special criticism which ought to be passed upon the special taxes put upon special kinds of property. The first of these is the Land Tax, the halfpenny tax on land apart from building. The Government has spent a great deal of time in trying to explain to us why the capital value of undeveloped land and minerals and of nothing else belongs to the community at large, and should be subject to taxation. The right hon. Gentleman will himself admit that he has not tried to explain it. The Lord Advocate did, and he had some advantages in doing it, because he is a convinced follower of Henry George. I will not call him a Socialist, because I believe that makes the Socialists angry, and it certainly makes many Gentleman who sit behind him angry; and I quite agree in thinking that Henry George was not a Socialist. He was something, in my opinion, very much more foolish. He found a most ardent and able disciple in the present Lord Advocate, and I do not know by what arrangement of rivalry or dissimilarity the Leader of the Scottish Bar should be a disciple of Henry George, and the Leader of the English Bar should make a speech the first quarter of an hour of which was devoted to a violent denunciation of all the followers of Henry George. When the Lord Advocate, in his best and mildest Parliamentary manner—and nobody has a better or a milder Parliamentary manner—explained to us why he thought the capital value of land—I am not talking of increment—and minerals especially, ought to be taxed, really the only reason he could give was that it could not run away. I have not got the exact words, but, as a practical man, he observed—that is what it came to—as a practical financier, he said that there were great advantage in dealing with capital values that could not escape.
That may be a very wise practical maxim, but I do not see much justice in it. Because land cannot go and minerals cannot go, that is no reason why they should be exceptionally robbed. It might be perfectly proper—I do not think it would be—to have a tax on the capital value of all properties, to substitute that for your Income Tax, or have it in addition to your Income Tax if you thought right. I defy you to find a reason, I defy anyone to find a reason, why you select one form of property and have taxation on the capital value of a particular form of property which the right hon. Gentleman has selected. I agree that there is one argument which has been used of a more or less practical kind, which is that if you tax undeveloped land on its capital value, you would be doing something for the housing of the working classes, and that you would drive land into the market. I have not time to develop that. But it was admirably dealt with by my right hon. Friend in his speech the other day, and I do not think I can add anything to what he said. But that argument does not apply to minerals. Do you want to drive them into the market? Because I rather think that that would be very injurious to the workers in mines. The hon. Gentlemen below the Gangway believe—I believe that they are wrong—that the artisans near large towns would gain by a tax being put on the capital value of undeveloped land, because it would compel people to part with land at cheaper rates, prematurely. I do not think that they would adopt that argument with regard to minerals. I am perfectly convinced that if they once thought that the effect which the halfpenny tax is going to have on land is also going to extend to minerals they would be the first to think that that tax had very questionable and very doubtful results, and when I am told that the halfpenny tax on land is going to give immense benefit to working classes in towns may I remind you that the Lord Advocate, who is the author of this part of the Bill, told us in his speech that he thought the best way of developing land near towns was to build on it villas with gardens. It is in the interest of people who want to purchase villas with gardens that the halfpenny tax is put on land. How are villas standing in acre gardens going to help the housing of the working classes? It seems to be perfectly preposterous. No argument has been given by the Government on the merits of this tax. They have gone back to authority. Most of the speech of the Chancellor of the Exchequer consisted in reading out extracts from various Blue Books and Reports of various Commissions, in which he said they had recommended a tax of this kind.
A heavier tax.
To my great surprise the right hon. Member for the Forest of Dean in his speech yesterday assented to that view. All he did was to criticise the policy of the Government in using the tax for Imperial purposes instead of local purposes. Does not the argument of the Government show almost incredible confusion of ideas? I do not myself agree with the Commissions who recommended a tax for rating purposes, but, at all events, it was for rating purposes, and in regard to raising money for local taxation the proposal is to throw the burden on real property of various kinds—lands and houses of various kinds—or the occupiers of lands and houses. Here is a form of land, at all events, which does not apparently pay its contribution to these local rates. Therefore, say the Commissioners, and says the right hon. Gentleman the Chancellor of the Exchequer, you ought to bring this into local rating, and make it pay like other forms of real property within the borough. That may be a good argument or a bad argument, but it has nothing whatever to do with a proposal that singles out for special taxation for Imperial purposes one particular kind of property and one particular kind of property alone. I will not go into the arguments for or against that view. The arguments for using land for rating purposes are of a wholly different character from the arguments which ought to be produced by the Government for using this particular kind of property as a milch cow for the benefit of the general taxpayers. I think that the attempted answer on the part of the Government really shows how much they are put to it to find an answer on the merits of this particular part of their scheme. Then the Chancellor of the Exchequer went on to describe the absurd fears excited by these taxes in regard to minerals. He told us how he had been down a mine, how he had examined the books, and how he found that the proportion of mining royalties in that particular mine was a very large or a very important fraction of the amount spent in wages. But the right hon. Gentleman must know as well as anybody that wages would not be affected, and are not affected, by these mining royalties. What has the relation of mining royalties to wages got to do with this Bill? Nothing. No miner is going to work an hour or a minute less, whatever you do with the mining royalties,. No miner is going to get another shilling wages, whatever you do with royalties. Everybody knows that mining royalties may depend upon wages, but wages certainly do not depend upon royalties. The right hon. Gentleman, I think, made a sort of appeal against the narrowness of vision, the niggardliness of spirit of those who object to pay this wretched ½d. tax as being worthy of the profoundest condemnation. But the tax is not a trifling tax. The ½d., although the right hon. Gentleman speaks of it as being so little, means something not very far from 1s. in the £ and the Chancellor of the Exchequer must indeed have been debauched by his 1s. 2d. Income Tax and his Super-tax if he thinks 1s. in the £ is a trifling contribution for any man to pay out of his annual income.
To go from the tax on capital values, I ask the Government what their justification is for the Increment Tax? That tax is in halves. There is the Increment Tax on land, and there is what is really an Increment Tax on buildings as well as land; practically it comes to that when the lease falls in. What is their justification? Why are not other increments to be taxed? That has only been answered by one hon. Gentleman in this House, and I do not think either the Prime Minister or the Chancellor of the Exchequer were here when the answer was given. It was an answer by the hon. and learned Gentleman the Member for Walthamstow (Mr. Simon), who spoke two nights ago. He has, unfortunately, a logical mind, and he refused to evade this difficulty, or even, in the manner of the Chancellor of the Exchequer, to make a joke of it. He said he thought they might be taxed. His view was that these windfalls and increments were quite proper subjects for general taxation. That may or may not be true, but at any rate in taking your subjects for general taxation do not pick out one particular kind of property, and, when it improves, take a fraction of the value of the improvement. That you never can justify, and I think you can justify it really less in the case of land than you can in the case almost of any other kind of property, and for this reason, that the increment is more difficult to establish in the case of land, than in the case of any other kind of property. In the case of stocks and shares, of course, you can establish exactly what the increment is. There is no doubt what the original value was, and there is no doubt of what the new value is. In the case of land there must always be the gravest doubt about the estimated value from which you start, its original value, or the new value at which you arrive. You may say that valuers can value. Of course they can value; they can value anything, and if you pay them I think they would even value your immortal soul. But does not everybody know that these valuations differ? They differ in the hands of the greatest experts. They differ so prodigiously that they are obviously mere shots in the dark. Such shots have to be made, of course, when land is compulsorily taken in small fractions for some public purpose. You cannot avoid it. But nobody pretends that the shot is accurate. Very often, in my opinion, land has been grossly over-valued. No doubt in other cases it has been under-valued. At all events, I return to my first proposition, that you cannot regard valuations as infallible. What is true of valuers is also true of juries, because it is by juries that these cases ultimately have to be taken, not under the Bill, but under the law as it exists. It is to juries that these things very commonly come for final decision.
Under these circumstances it is evident that if you have unearned increment value of this kind to be a just subject of taxation, then the very last kind of property which should be taken is that the value of which it is difficult to estimate. The first property which should be taken is that of which the value at any two given moments can be found in the stock and share list of the London Stock Market, about which there can he no question or doubt, and where the whole thing is refined to a fraction. I do not see how that is to be answered; I know that it never has been answered, and I have utterly failed in the course of these Debates to gee how it is to be answered. Let the House mark what I do not believe anybody has thoroughly realised, namely, that this increment tax really does affect house property also. The man who has let his house—he may not be the main tenant, he may not own the land, he may be a sub-tenant, he may be a first, second or fourth tenant—but if at the end of the lease of more than seven years he gets back his share in the premises and lets it at a higher rate, the increment value of that is subject to taxation. Why is house property, like land, to be discriminated from other kinds of property? The Government say that land was not made by the owner of the land Property in the National Debt was not made by the owner of Government stock, and I do not know that the argument really moves me greatly; but at all events, even that argument, poverty-stricken as it is, does not apply to houses. The truth is that this attempt to bring in a moral justification for your tax on increment value by saying that you only charge it upon what has cost the owner nothing in the way of trouble, labour or responsibility is the flimsiest argument that was ever put before the House. So far as my experience goes, what are called investments give no trouble at all, although they may cause your banker trouble. If I am the happy possessor of Canadian Pacific stock, what trouble is it to me? What labour is involved in that? I have not made any part of the railway; I have not wielded a pick; I have done nothing. I do not even risk anything. I certainly do not risk anything more than if I had land under this Government. And yet, forsooth, we are really given to understand that the different kinds of property in stocks and shares and in municipal debts, which cost the owner absolutely nothing, are considered not a proper subject for this taxation, while property in land, which cannot be estimated accurately, is really regarded as a fit subject for this method of filling the Exchequer.
The amount of bad metaphysics which we have had flooded upon us is really extraordinary. There are some people who really have the conviction that because the owner of land has not made the land, which he certainly has not, he therefore is not entitled to it and the community is, and therefore he is disentitled to the increment from it. Is it the community who made that? I understand that Glasgow is the happy parent of this scheme, regarded as a measure of practical legislation. Are we really to believe that it is the existing inhabitants of Glasgow who have made Glasgow? The existing inhabitants of Glasgow have done nothing of the kind. Glasgow is the development of centuries of work by people who are dead. It is the product of a great deal of work which was never carried out in these islands at all. Its prosperity was born of commerce, in the beginning chiefly with the West Indies—prosperity to which slaves contributed, to which foreigners contributed, to which West Indians contributed, to which Americans contributed, and to which the world at large has contributed. [An HON. MEMBER: "Everybody but the landlords."] I suppose the landlords contributed like everybody else. You may if you like say, if you choose, that this particular owner of property is to be robbed of all he possesses. That is intelligible. But what is the title of yours to all this despoiling to be? That I have not been able to understand, that the Government have never told us nor can anybody explain. The truth is if you are going to assent to the propriety of having property at all, to having property in land, and this is John Mills' doctrine as well as that of anybody else who thinks, all kinds of property ought to be treated alike. All kinds of property have an equal title to consideration. If you wish to say to anybody with any kind of property, "It is in the public interest you should divest yourself of this property," then, though that might mean hardships, I believe, however, that is the law on which society is based. But the notion that any form of justice which recognises property at all is consistent with the proposals of this Budget seems to me perfectly absurd. The amount of money which is to be raised by this tax is small, and the amount of discussion that we have had to give to it is absolutely disproportionate to the amount of advantage which is going to the Exchequer. The principles which we advocate are the principles on which alone a civilised community ought to proceed. I remember the Attorney-General for England declaring that no lack of confidence engendered by this or any other Budget could prevent human beings desiring to obtain money. He said you can never check the passion for acquisition. Acquisition is indeed as widespread as the family of man itself; but is there a more certain proposition advanced by any economist or student, by any historian, or any student of history, anybody acquainted with the realities of life—is there anything more certain than that to destroy confidence, even when you leave untouched the love of money, is to destroy commerce and is to destroy the resources of national wealth? I say most emphatically that to select one or two kinds of property and lay upon it a particular burden is to destroy national resources.
Supposing you were to say that every roan with red hair and more than ten thousand pounds per year had to pay a special Super-tax. [An HON. MEMBER: "Why red-haired?"] An hon. Gentleman interrupted me, and perhaps if he were Chancellor of the Exchequer he would use exactly the argument the Chancellor of the Exchequer had used and cry out at this "monster." "Look at this mean-spirited, red-haired man He 'hollers' for 'Dreadnoughts,' he votes for old age pensions, and this mean fellow, though he has got £10,000 per year, will not pay a small Super-tax which I put upon him, wretched creature!" After all, even a red-haired man may be public-spirited and have something of a case, poor wretch, though he has £10,000 per year and has to pay a Super-tax. Surely he is not very mean-spirited when he says, "Why am I to be selected because Nature gave me hair of this kind? Why am I to be selected, though I have £10,000 per year, for the special attention of the Chancellor of the Exchequer?" Sir, I think we should sympathise with him. Those of us whose hair was of another colour might rejoice at that to think that part of our burden was shifted on to his shoulders. That is the reason, and the whole reason, why, in my opinion, this portion of the Budget, not the portion which puts a general burden upon the rich man, but this portion which deals with rich and poor alike, poor quite as much as rich, but deals with the rich and the poor who own one particular kind of property alone, that is why I say that is a part of the Budget which is absolutely destructive of public confidence.
The right hon. Gentleman the Member for Islington (Mr. T. Lough), who, I believe, is going to give the Government his vote—he certainly did not give them his speech—in his remarks this evening, gave us a classic metaphor at the end of his oration, admirably developed, and in which he talked of this Budget as a great and shapeless block of marble, out of which the efforts of himself and his friend and the Chancellor of the Exchequer might ultimately carve some masterpiece of statuary. If all the criticisms which hon. Gentlemen made on this Budget, all the criticisms which hon. Members from below the Gangway have made on it, and all the criticisms I have ventured and endeavoured to sum up briefly, if all these are carried out by the Chancellor of the Exchequer, I do not think there will be enough of that marble left to create one of those little Greek bodies which are the delight of the artist, but throw no great burden upon the column. It seems to me that from top to bottom this Budget errs. It is for that reason my right hon. Friend (Mr. A. Chamberlain) moves its rejection as a whole. I do not see any part of it which avoids criticism. I see some parts against which the criticism appears to be absolutely fatal, and there are other parts again, not only open to every sort of objection, from the point of tradition, from the point of revenue, from the point of view of the accepted principles of taxation, but a portion of which is so obviously inconsistent, as I think, with the common doctrines of financial honesty, that I regret that the Government have ever thought fit to bring them forward.
We have now had three weeks' preliminary discussion and nearly four nights' Debate on the second reading, and, last, but by no means least, we have had the speech of the right hon. Gentleman who has just sat down. I think we have heard everything that can be said against the main [HON. MEMBERS: "No, no,"] governing principles of the Budget. There is still an hon. Gentleman who thinks he can supply facts which his leader has left out. I think he flatters himself. I am not going to weary the House but for a very short time; but as the right hon. Gentleman tells us that his criticisms remain up to this moment, the most substantial or serious of them, entirely, I will not say unanswered, but even undealt with, I am going to endeavour to summarise the objections which have been taken, and see how far, after the stress of the discussions, any one of them can be regarded as insuperable or unanswerable. First of all, I will deal very briefly with two or three points the right hon. Gentleman made in the early part of his speech. He said that my right hon. Friend the Chancellor of the Exchequer had grievously under-estimated the amount of revenue which he would obtain from his new tax. How does the right hon. Gentleman know? On what evidence is the charge founded? The right hon. Gentleman (the Chancellor of the Exchequer) has the advantage in making his estimate of the most skilled advisers. I am not aware that any specific item in the estimates which he has presented to the House has been seriously or authoritatively denied. The right hon. Gentleman (Mr. Balfour) proceeded a few sentences later to answer his own criticisms when he came to deal with the Income Tax and Super-tax. He said the estimate of my right hon. Friend was an over-estimate, and that he had grossly over-estimated the yield which these new imposts would ultimately bring in to the Exchequer. One charge is as much a matter of speculation as the other. For the time being I think the House may very well rest content in a matter which cannot be brought in figures by actual experience to anything like accuracy to rest provisionally upon the estimates of those who are most entitled and qualified to give them.
The right hon. Gentleman complained of those proposals in the Budget which deal with indirect taxation—in other words, the taxes upon spirits and upon land—on the ground that they fell with uneven and excessive weight upon particular classes of the consumers, and could not be regarded as fulfilling the conditions of fiscal equity. What will the right hon. Gentleman do? How is his ideal fiscal equity to be attained? Have we to impose indirect taxes on every commodity which is consumed by any human being in the country? The list of your impost and your Excise Bill will be so preposterously large and the expenses and difficulty of collecting will be so enormously greater that you will be embarking on an absolutely foolish undertaking. We do tax tea, we do tax sugar, we do tax beer; by this Budget we are proposing additional taxes on tobacco and on spirits, and, with the exception of bread, there can be hardly said to be a single one of the necessaries or simple comforts of life which is not made to contribute its quota to the national revenue. Therefore, unless the right hon. Gentleman wishes us to understand that he thinks our system of indirect taxes will be incomplete unless bread is also included, I see very little foundation for that complaint. Then, in that connection, he made a very extraordinary charge. He said, speaking of the Spirit Duty, even when you are imposing this extra duty on alcohol, you throw it on to Scotland and to Ireland. What does the right hon. Gentleman mean? Does he think the tax on spirits is going to be paid by the distillers or the consumers, or, if it is going to be paid by the consumer, has he any notion of the relative quantities of spirits which are consumed in the different parts of the United Kingdom? Let me give the figures, because they answer to some extent hon. Members below the Gangway with regard to the supposed injury to Ireland. The figures are these. Speaking now of home distilled spirits, the consumption in Eng- land and Wales is 22 million gallons; Scotland 6¾ million gallons; Ireland 3¾ million gallons. To say that the addition which has been already got from the consumer by the wholesale and retailed dealer, to say that that is a tax which is going to be borne by Scotland and Ireland, I do not see.
Then, as regards the Death Duties and the Super-tax, the right hon. Gentleman made most valuable admissions. He tells us, and I am glad it should be put on record, I think it is the first time he said it, he is in favour of graduation. We have advanced a considerable step as compared with the position in which we stood two or three years ago. The right hon. Gentleman is in favour of graduation. The only practical objection, as far as I can discover, which he made to my right hon. Friend's proposal was one which would be incident to any attempt at graduation, namely, the inquisitorial methods you must employ to ascertain the actual income of any individual. You cannot have graduation without inquisition. As I pointed out earlier in these Debates, you cannot have any Income Tax at all without potential inquisition, which can be, and is, made into actual inquisition whenever there is ground to suspect that a taxpayer is not doing his duty and is not disclosing the real state of his income.
The argument which the right hon. Gentleman used in the same connection in regard to what we are told is the growing export of securities is one which I confess myself totally unable to comprehend. I have not the dimmest glimmering of an idea of what this export of securities consists of. Whether they are securities which are being sold here and the proceeds being then invested abroad, or whether they are securities which have hitherto lain here and are being deposited abroad for safe custody, I really do not know, and I am not sure whether the right hon. Gentleman knows. In any case, so long as the owner of securities remains resident in this country, is subject to Income Tax, and it is the law of the country that a man resident here pays Income Tax on his income, wherever it is made, it matters very little whether the securities are in London or New York.
I promised to summarise, and I think I can do so under three heads, the great bulk of the criticisms and objections which have been made in the course of these protracted Debates to the main principles of the Budget. I will take first that which was made by the right hon. Gentleman the Member for East Worcestershire (Mr. Austen Chamberlain), on the opening night of this discussion, in what I regard as the most formidable attack which has yet been made on the Budget. The right hon. Gentleman said—and this was a general criticism on the Budget as a whole—that the Budget was inconsistent with the principles of Tree Trade finance, because, as he alleged, it violates two of the fundamental canons of that system of finance. They were the canons, first, that taxation should be for revenue only, and, next, that taxation should not take more out of the pocket of the consumer than it put into the coffers of the State. He says that it violates the first of those rules, because admittedly our taxes on land and on licences have an ulterior purpose, and are animated by other than merely fiscal considerations. He says that it violates the second of those two canons because, in the case of the Liquor Duties, for instance, we are admittedly imposing taxes which will enable the trade more than to recoup themselves, and even to make a handsome profit out of the transaction. I think I have fairly stated the right hon. Gentleman's observations. Let us see whether or not these charges are well founded. These two so-called canons are really expressions of one and the same idea, namely, that it is a principle of Free Trade finance that the object of taxation should be to bring revenue into the Exchequer, and not to benefit private or independent or outside interests. The object of protective taxation is exactly the reverse. When a protective tax is imposed—I am not speaking now of a prohibitive tax—in the shape of an import duty on a commodity which is also produced at home, as everybody knows the whole supply of that commodity, taxed or untaxed, is enhanced in price. That is not only the effect, but it is the intention of a protective duty. It is not an incidental effect, it is the intention of those who impose it, that that part of the total supply with its enhanced price which comes from abroad, and that part only, shall yield a revenue to the Exchequer; while in regard to the remainder, the domestic part of the supply, the producer shall enjoy the shelter and stimulus which protection gives. I think that is a fair statement of the case as between these two systems. But with a tax such as those which we are now imposing, as to which there can be no question of that kind, because no one can suggest that either these taxes on land, or on liquor, or any other of the taxes proposed have any such intention—when a tax is free from that objection, I know of no principle of Free Trade, I know of nothing either in the writings of economists or in the practice of Free Trade statesmen, which makes it immaterial or irrelevant—whether you are maintaining a tax or imposing it, whether you are choosing as between this tax and that; whether you will impose one or the other—to consider what will be the social and moral effect of imposing one or the other. You may search the writings and the speeches of Mr. Gladstone, and you will find the principle laid down over and over again, both when he was repealing the paper duties and when he was rearranging the wine scale in reference to the admission of French and other light wines. Every Free Trade financier has acted over and over again upon that principle. I say, therefore, that my right hon. Friend is perfectly justified, there being no suspicion or possibility of protection in the matter in regarding it as a recommendation of his land taxes, that they will bring into the market land which is now artificially withheld from it, and thereby promote the healthy growth of urban communities. He is also perfectly justified in regard to his liquor and Licence Duties in considering whether the effect may not be to discourage the growth, and, indeed, the existence of some of the worst class of houses. And when we talk, as the right hon. Gentleman does, about more going into the pockets of the trade than will pass into the coffers of the State, the resources of civilisation in that respect are not exhausted. If the trade choose to say that they cannot recoup themselves in any practical way for the additional burden which this tax imposes upon them, except by raising the price of the commodity which they sell to a point far higher than is needed for the purpose of indemnifying them against the new demand made by the State, I do not know what my right hon. Friend may do, I do not pretend to be a confidant of the secrets of his next year's Budget, but I know what I should be disposed to do. I should at any rate think whether it might not be possible, and even expedient, to transfer the tax from the person who sells, to the commodity which that person exposes for sale. At any rate, I think we may fairly say that the charge made against us in the matter of the canons of Free Trade finance has not been made good.
The second charge made against us—and here I come to close quarters with the right hon. Gentleman who has just sat down (Mr. Balfour)—it has been repeated over and over again—is that these taxes have not been chosen in good faith on their fiscal merits, but in a spirit of vindictiveness, to fine and punish particular classes and interests, or particular forms of property, which are not in favour of the Government or the majority of this House. [OPPOSITION cheers.] That is really received with very faint cheers, and I am not surprised; because, although I have no doubt that the charge will serve at any rate as rhetoric on the platform, I think it was yesterday completely swept out of the regions, if I may use the expression, of national entities, by my right hon. Friend the Chancellor of the Exchequer. This £13,000,000 has got to be found somewhere and somehow; everybody admits that; and the right hon. Gentleman who has just sat down has really acquitted us in regard to what I thought was the gravamen of the charge, namely, that our Budget was directed in particular against the landed interest and the owners of agricultural land. He has really acquitted us and found us not guilty.
I accept your professions.
That is not a very generous way of putting it. I thought the right hon. Gentleman went a step further and admitted that our professions were made in good faith. But really, in addition to what the right hon. Gentleman has admitted, and in addition to what the Chancellor of the Exchequer so forcibly pointed out yesterday, when he really appeared for a few moments almost in the guise of a good fairy, I am indebted to the right hon. Gentleman for supplying one little gap which was left in my right hon. Friend's argument. He called attention—I admit it was for a totally different purpose—to what he regarded as the different and discrepant definitions of site value. The differences are not quite so great as the right hon. Gentleman supposes; but I admit that there is a discrepancy. There is a discrepancy, and a very marked discrepancy, between the definition of site value in the case of urban land and in the case of rural land. What is the difference? In the case of rural land, the site value gives for increment purposes full credit to the owner of the land for all the improvements he has made. In other words, this is an additional boon to agriculture. The agricultural owner starts on the road towards increment with a larger amount put to his credit than the corresponding owner of urban land. So that, in addition to all the other boons which my right hon. Friend is promising agriculture, this elastic, generous, and considerate definition of site value should be put to his credit. There is very little there to justify the charge of vindictiveness, and I have heard really no attempt to reply to what my right hon. Friend said yesterday.
Now I come to the general charge against the Budget with which the right hon. Gentleman associated himself in the latter part of his speech, namely, that it is Socialistic and an attack on property, or, at any rate, some forms of property. I see that this was put only last night with characteristic amenity by the Chief Whip of the Opposition. I am quoting a paragraph which I saw in the paper. The right hon. Gentleman (Sir A. Acland-Hood) said that and a piece of robbery, and asked me, "What is your justification?" I will tell him in one sentence. We say that all land ought to be taxed at its proper value. Agricultural land is so taxed; some people say it is overtaxed. My right hon Friend has made very large concessions in that direction. But here is land which is not being taxed at its proper value. The whole object of the Undeveloped Land Tax is to secure that it shall be so taxed. That is my answer to that. The right hon. Gentleman says that the authorities which have been cited were authorities for rating, and not for taxing, land values. That is not quite so. He is forgetting the great authority of all—his own Chancellor, or, at all events, his old colleague, Lord St. Aldwyn. Lord St. Aldwyn, in a passage cited yesterday by the Chancellor of the Exchequer, was speaking, not of rating but of taxing. He was suggesting the proposal to Sir William Harcourt as a substitute for the Death Duties. If it were to be an adequate substitute for the Death Duties it must be on a much larger scale. It would have to bring millions into the Exchequer.
Then I come to the equally important duty, the Increment Duty. The right hon. Gentleman says a lot of bad metaphyiscs has been talked about it. He challenges us once more to justify dealing with the increased value of land in this exceptional way. I have spoken about that before. I thought I had made that clear. But once more, in one sentence, I will explain to the House what we believe to be the underlying principle, the justification for this tax. What is it? We say that as regards much of the land in a community like ours, a country with a crowded population, with an ever-growing tendency to become more and more aggregated in masses—that as regards much of the land in the country so conditioned there is a steady and continuous advancement in its capital value, not due to any effort, enterprise, or expenditure on the part of the owner, not, this is the important point, foreseen or foreseeable when the land was acquired by its owners or by their predecessors in title. That enhancement of value arises from the growth, activity, and expenditure of the community, and we say that upon that added value so accruing it is consistent with national justice, with economic principles, and with national policy, that the State shall from time to time levy toll. That is a principle that does not rest on metaphysics. It is a principle of plain common-sense and equity, and in the appli- cation of that principle in this Bill we take the land as it is, and simply say that as regards future increments arising, not from the efforts, exertions, or expenditure of the owner, but from those social and economic processes to which I have referred, we take a small percentage and apply it to public purposes for the benefit of the community which has created the increase. I am prepared to defend the principle at any time, not less so because it has been growing in volume in the legislation of the civilised countries of the world.
Let me just point out what the issue is going to be to-night. This is an Amendment to reject the Bill. For the last two years—1907–8—we have had "reasoned Amendments," demanding by way of substitute for the Budget of the year a scheme of what is called "broadening the basis of taxation." What has become of them? Are we driven, must we be driven, to the melancholy conclusion that the alternative Budget of Tariff Reform has been found to be much safer on the platform than it is in this House? I will once more repeat the question which has been so often Pitt in the course of this Debate, and which has never yet been answered. This money has to be provided—as everyone admits—for objects whose necessity and urgency nobody denies. Where is it to come from? Under this Budget we are seeking to provide it from sources which can afford it without fining wealth, without hampering industry, without trenching on the necessaries and simple comforts of the daily life of the people. The bulk of the burden will fall, as we believe, on shoulders best able to bear it. It will be shared, like the benefits of which it is the price, by all classes and all interests in the community. Let the Opposition show us a more just and a more excellent way.
The right hon. Gentleman, in the very interesting speech which he has just delivered, thinks that it has been sufficiently debated. But in this Budget we find that finance in itself takes up no less than 62 pages. I do not think, in view of that, that it can be said that the Debate has been unduly protracted. More so, because I am told that there are many Members on this side who are still most anxious to address the House. It is very remarkable that in that address we hear the very same complaint that we have heard over and over again from the Chancellor of the Exchequer. Both the right hon. Gentlemen appeal to us, and say, if we disagree with the Budget, "How are you going to find the necessary money?" It is no part of our business on this side of the House to tell right hon. Gentlemen how we will find this money. But I would remind them that the country well knows how we would find the money if we were called upon to do so. Whenever the country gets the opportunity of showing whether they prefer our scheme or the scheme of the Government, invariably the country emphatically says that it prefers to leave this matter in the hands of the present Opposition rather than in the hands of the present Government. If the Prime Minister and the Chancellor of the Exchequer have any doubt whatever on that, let them appeal to the country at the present time. I venture to say the country will very emphatically give a verdict that it has no faith whatever in the proposals of the right hon. Gentleman the Chancellor of the Exchequer.
I did expect, in the course of the Prime Minister's speech, a reference to the very important point that was raised by the right hon. Gentleman the Member for Islington (Mr. T. Lough). This afternoon he pointed out, and I believe correctly, that this Budget, while ostensibly brought forward to find £14,000,000, would, he had no doubt whatever, produce £21,000,000. That is a very important point, and it ought to have been referred to by the right hon. Gentleman. I sincerely hope that the Chancellor of the Exchequer will let us have his views upon that most important point, because I maintain that the strain upon the State is sufficiently large at the present time, in a period of depression and bad trade, to find £14,000,000 of money, without being called upon to find £21,000,000.
There is another point that I should have liked to hear the opinion of the right hon. Gentleman upon. I would have liked to hear him refer to that weighty resolution passed by the bankers of the City of London against the Budget. Surely that resolution was entitled to consideration at the hands of the Chancellor of the Exchequer. Then, if that is not sufficient, I am surprised that the right hon. Gentleman the Prime Minister has not referred to the almost unanimous opinion of business and commercial classes against the Budget. I go daily into the City, and never in my experience, or from that of business men, has there been such a universal condemnation as there is with regard to this particular Budget. I dare not use the strong language here that is so freely uttered by business men, not only in the City of London, but in other commercial parts of the City against the proposals contained in the Budget. Depend upon it, any Budget, condemned by bankers in the way that this Budget has been condemned, and in the almost unanimous condemnation by business men, is not a Budget that ought to be forced through this House. Instead of accusing us of protracting the discussion, I maintain the proposals of the Budget are entitled to more consideration than we are likely to be able to give them before we are called upon to vote to-night.
The right hon. Gentleman the President of the Board of Trade, speaking a few days ago in Manchester, said that no rich man and no poor man would get a worse dinner after this Budget is passed than he gets at the present time. I entirely differ from the right hon. Gentleman with regard to that statement. I believe with him that no rich man will get a worse dinner. I have no hesitation in saying that many a poor man will get a worse dinner after this Budget is passed than he does at the present time. I believe the effect of this Budget will be most detrimental to business and commercial undertakings in this country. Above all, it will be detrimental to the manufacturing interests of the country. Depend upon it, that which injures manufactures injures the working classes. We heard the right hon. Gentleman opposite glibly talking about the fact that we had mentioned that capital would go abroad. They ridicule and belittle that; but it is a most serious matter if capital which ought to be invested in productive enterprises of this country, instead of being so invested, is invested abroad. What is the result? I will give one concrete case which came to my notice recently. It came from a very prominent Radical and not from a member of the Unionist party. He told me he was, upon the point of ordering a ship which would cost £35,000. He was about to give an order to a shipping yard, which has at the present time a great number of men idle. These men are constantly clamouring for employment and cannot get it. Well, he was on he point of ordering his £35,000 ship when the Budget was introduced, and immediately, he said, he gave up the idea, and instead of that he invested the money in gilt-edged securities or bought some foreign securities, which are now booming on the Stock Exchange. What is the result? That £35,000 would have employed the men who are out of employment, and these men would have got better dinners than they are getting at present. The result is that the rich man—and he is a rich man—will get his dinner, but some of the men who would have been employed by his order having been given to the shipyard will go without dinners. And so it is when business men look for example on the statements made by right hon. Gentlemen on the Front Benches opposite, when they seem to think that it is no detriment to this country or to the working classes that money is invested abroad rather than in this country. When the Chancellor of the Exchequer introduced his Budget to provide more money he ought to have had more consideration as to how he was going to raise it than he has had. He ought to have considered how he was going to raise it without injury to trade and the commerce and the industries of this country. But, above all, he ought to have made sure that as a result of this Budget not one penny would have been withdrawn from productive industries in this country. The Budget any Chancellor of the Exchequer or Minister in responsible position ought to have introduced was one in which he ought to have endeavoured, first of all, to induce some of that money which is at present lying idle in our banks to be invested in the productive industries in this country.
We are told that gilt-edged securities are rising. Yes, gilt-edged securities are rising, and when in a period of depression in trade, such as we are passing through at the present time, gilt-edged securities are rising, I venture to say, and I am sorry that there are not more Labour Members present to hear it, that it is an extremely bad sign for the working classes. Gilt-edged securities are rising, and I read this in the papers a few days ago:— seems to think, is a sign of the prosperity of the country. On the contrary, it shows a lack of confidence which exists in the business community at the present time. I maintain this Budget has deepened distrust in the commercial classes, and so long as we see Budgets of this class introduced, depend upon it we will still have to lament most of the unemployment and pauperism which we lament at the present time. Then we hear hon. Gentlemen and right hon. Gentlemen opposite gloating over the fact that the idle rich are going to contribute largely to these sixteen millions. Who are the idle rich? The majority of the people I know who are rich have become rich because they have not been idle, but because they have been industrious people, carrying on some of the greater industries of the country, and when they have reached that period when they have been able to retire upon their hard earnings, they are reviled as idle rich, and certain Members opposite seem to gloat over the fact that they are to be taxed. There may be some idle rich who have inherited their money, but they are comparatively few compared with the rich men who made their money because they had not been idle, but because they had been industrious men. I do maintain that as long as attacks are made upon the so-called idle rich men, the right hon. Gentleman will have some difficulty to get rid of the almost universal idea that this is a vindictive Budget. Undoubtedly it is a vindictive Budget. It is vindictive in this sense, that for months, and almost for years past, we have been told by leading Statesmen opposite: "You have thrown out our Valuation Bills and Licensing Bills. Wait until we bring in the Budget, and we will make you smart." That is the effect of the speeches made by right hon. Gentlemen opposite, and by none more so than the Chancellor of the Exchequer—
Does the hon. Member really suggest that I made use of language which he has summarised to that effect, and in the way he has done?
I said the effect, and undoubtedly the effect in the minds of the people is as I have said.
That is not what the hon. Member said. He said that I stated that because the Valuation Bill and Licensing Bill was thrown out I would bring in a Budget that would make those people smart. When did I ever make use of language of that kind?
I do not wish to make any specific charge against the right hon. Gentleman. I was speaking generally, and I said the effect of the speeches made by the right hon. Gentleman certainly bore out the idea that this was a vindictive Budget. I do not wish for one moment to accuse the right hon. Gentleman of having specifically stated that as a result of certain Bills having been thrown out he would make people smart. I was speaking generally, and that is the generally accepted idea in the country. I want to bring before the House now another point mentioned to me recently. There seems to be a general idea, and it is very widespread on the part of the leaders of the working men, that all employers of labour and all manufacturers are wealthy men. There never was a greater mistake. Many of the men at the head of our great industrial works are anything but wealthy men, and but for the so-called idle rich capitalists who assist us it would be impossible for us to carry out our business. If we want to build an engine shop or a ship, or a particularly big yard in any of our great factories, we appeal to our capitalists to assist us to carry out these undertakings.
Let me give an instance. There is a certain gentleman worth about £100,000, and this is the way he put his case to me. I have been in the habit, he said, of investing £25,000 out of my £100,000 in Consols; that brings me in 3 per cent. or £750 a year. I put £75,000 into industrials which brought in 6 per cent., or 4,500 a year, making a total of £5,250. I called the particular attention of the Chancellor of the Exchequer to these figures, because I considered them extremely important. Now this gentleman said after the introduction of this Budget I will have to pay an Income Tax on £3,000 a year of 1s. 2d.; that is £175, and on £2,250 I will have to pay a Super-tax amounting to £287 10s., making a total of £362 10s. in Income Tax, and as a result of this Budget and depreciation in trade I will have to face a depreciation of shares of probably £25,000 on the capital account. Therefore, he says in future I will put nothing into industrials, but I will put all into Consols. Then he will have £3,000 income on which he will have to pay Income Tax at 1s. 2d., or £173 a year, as compared with £362 10s., and at the end of every year I will have the satisfaction of knowing that my capital is intact. That is a concrete instance of how most men's minds are affected by a Budget of this description. If that is so you will find men withdrawing their capital from our industries, and then, instead of finding unemployment decreasing, and pauperism decreasing, you will find both of them increasing.
The hon. Gentleman the Secretary to the Local Government Board (Mr. Masterman) came to my Constituency in Newcastle-on-Tyne the other day, and he told the people there that one person in 20 at the present time is a pauper, and that notwithstanding old age pensions and all the grants made to unemployment. I put it to the right hon. Gentleman the Chancellor of the Exchequer is there anything whatever in this Budget which is going to reduce the number of paupers? On the contrary, is it not likely to increase them? Has the right hon. Gentleman ever considered the relationship of this description of finance to the enormous amount of pauperism we have at the present time. Depend upon it there is some relationship, and the result of this Budget to a very large extent will be that rich men will become richer men, because capital can be sent from one point to another, and poor men will become poorer men, and will continue to become poorer men, unless a Budget is brought in which is going to increase the employment of the people of the country. I want to put one other concrete point. The Death Duties are increased. Some people think that that is quite right, because it is going to tax the rich. Take the case that I know well of a shipowner. Everybody knows that a man in the shipowning trade may be fairly well off, and have a large amount of money invested in his business, but his assets at the present time, owing to a depression in shipping trade and a general depression, are absolutely unsaleable. What is the result? The man, instead of extending his business, gives his thought to the question as to how the money is to be provided at his death to pay the Death Duties. Instead of extending his business he curtails it, and who suffers? Why, the working men suffer. These are points which I commend to the so-called leaders of the working men. [Cries of "Oh, oh."] These things may not be palatable to certain hon. Members, but they are well-considered facts, and I defy anyone to contradict them. I will take next the question of Income Tax. This tax has always been considered a reserve for emergencies in case of war, and all responsible Ministers in the past have held this view. Are all Ministers in the past wrong, and are the Ministers of the present day the only men who are right? Let me take, for example, the First Lord of the Admiralty. Speaking in this House on 20th July, 1904, he used these words:— what we would do to raise the money. Has he lost faith in his Budget? Why does he appeal to us? Let him defend his own Budget and explain it, but let him, above all, explain whether it is true or not that, in a time of depressed trade, when we have so many men out of work and such a mass of pauperism, instead of £14,000,000 he intends to extract £21,000,000 from the pockets of the taxpayers of this country. These are very important matters. Let the Chancellor of the Exchequer consider the protest of the bankers and the almost unanimous opinion of the working classes. If he does, I venture to think that before this Bill passes into law concessions of a very extensive character will have to be made in it.
The hon. Member for Newcastle-on-Tyne has just asserted that it is undesirable to increase the Income Tax at the present time, because that tax has always been regarded as a reserve in case of war. I cannot help thinking that the hon. Member is guilty of some little inconsistency in this matter. I have always been under the impression that one of the dangers that hon. Gentlemen opposite most fear with regard to taxation was that the popular voice would lead to the imposing of taxation on a small class which was less represented at the polling booth. Surely the hon. Gentleman must recognise that the one form of expenditure which is most likely to be incurred as the result of some great popular cry of popular feeling is expenditure for war purposes. I would suggest to him that it is a wise precaution to let it be understood that it is in time of war that the Government is compelled to resort to these forms of taxation which are most felt by the populace, whose clamour may at some time render war necessary. If there are already such heavy taxes upon articles of ordinary consumption that they cannot easily be increased in time of war, I put it to the hon. Member whether, when there is any popular feeling aroused, people will not think they are at liberty to urge the Government to enter upon a warlike policy without having the liability to pay for the expenditure incurred. The hon. Member has to some extent differed from nearly every previous speaker who has spoken from the Opposition benches, for they have devoted their speeches very largely, if not mainly, to the question of the taxes on land. The Leader of the Opposition asserted that the discussion of the Land Clauses of the Finance Bill was altogether out of proportion in his judgment to the amount of revenue raised by the Land Taxes. I think hon. Members who heard that statement would have been inclined to add that the amount of discussion engendered by the clauses relating to the Land Taxes in this House was even more out of proportion to any burden which those clauses and those taxes would inflict upon any class. The general trend of the argument has been, in the first place, that one form of property should not be singled out for taxation, particularly when it is an industry already overburdened, and which the right hon. Gentleman the Member for East Worcestershire (Mr. Austen Chamberlain) described as a "decaying industry." It is pertinent to notice that it is not all land that is to be taxed. It is not proposed, for instance, to tax agricultural land unless there has been an increment. There is no proposal that agricultural land should be taxed except so far as the land has increased in value, and when the hon. and gallant Member opposite admits that such land has increased in value the industry which the right hon. Gentleman the Member for East Worcestershire referred to cannot be described as a decaying industry. As I say, it is not proposed to put a tax on fully developed land unless there has been an increment. What is done by these taxes is to put the burden on certain forms of property in land where there is an increase in the valuing of that land. It has been asked more than once that if you put the tax upon the increment in land value, why should you not put a tax on similar increment, such, for instance, as railway shares? There is one essential difference between an increment in land values and an increment in other forms of property. Land value is something of the nature of a monopoly. Of course, there are monopolies besides those in land values—in railway property, and in gas and water companies. If you have a statutory gas company, a statutory electric supply company, and other statutory companies, you will find that there is also a statutory limit of dividends. Railway companies are not quite on the same footing, but I think that hon. Members who have followed railway discussions in this House must know that if the profits of a railway company rise and rise and rise, as it is the case with land values, and especially building land, the demand is made on railway companies for increased facilities, for lower charges, and better wages and hours for their men, and when that demand is made it is not resisted for very long. Land, in this respect, is upon a very different footing from other forms of property.
There is another form of land values to which I wish to refer, and that is undeveloped land and ungotten minerals. These values escape not only local burdens, but Imperial burdens. I think it was the Member for Preston (Mr. H. Cox) who said, in a speech on this subject, that it was rather unfair to tax a man who invested his money in undeveloped land and mineral rights and not to tax the same man who invested his money in Consols. There is this essential difference between the two cases. We must assume that a man who invests his money in undeveloped land or mineral rights does not do so for the immediate enjoyment of profit. He expects that every £100 invested in land and mineral rights will increase at compound interest, and 5 per cent. will be added to the value of his property every year. If not, he would not be so stupid as to invest his money in that form of property. As to the man who invests his money in Consols, he receives dividends, and he does not want to touch his capital, say, for ten years. Every year he has to pay Income Tax on the dividends, but his investment in undeveloped land or mineral rights entirely escapes burdens not only Imperial, but local. I do say that in putting these taxes on land the Government are putting them on the increment of a monopoly and on a form of property which escapes both local and Imperial burden, which other forms of property have to bear. I do not think that an appeal on the score of pity on behalf of the unfortunate owners of this form of property can have any weight. There is another point which I should like to say a word or two about. I think it was the hon. Member for the University of Glasgow who complained a day or two ago rather bitterly that the Chancellor of the Exchequer in taxing land was taxing a form of property which could not escape. He was, I think, a little inconsistent with other utterances which came from the benches opposite. I think that I have heard very strong criticism addressed to the proposals of the Chancellor of the Exchequer with regard to taxing another form of property which could escape the attention of the tax-gatherer. It may be a pretty sight to see an agile official of Somerset House in full cry after a million- aire, but the Chancellor of the Exchequer is not out for sport but to make a bag.
The Prime Minister, in the brilliant speech he recently delivered, defended this Budget from the English standpoint, and with a great deal of what fell from the right hon. Gentleman I am myself in complete agreement. But his remarks and arguments were altogether outside the question of the relationship of the Budget to Ireland. This Budget unquestionably is popular with the majority of the Members of this House. We have, however, to discuss it from the point of view of our own country, and I think I shall be able to show that it has been mainly devised with a view to the situation in England. We are apprehensive that the peculiar position of Ireland has not been realised, and that the incidence of this taxation, so far as Ireland is concerned, has been overlooked. It may be I am an alarmist; still, I cannot help thinking that this is the worst Budget for Ireland since the year 1853. I object to it in the first place because the yield of the taxes to be imposed by it upon Ireland is, in my opinion, greatly underestimated. I abject, secondly, because it is a breach of the contract in the Act of Union, and thirdly I object because it is a practical repudiation of the findings of the Financial Relations Commission on the fiscal condition of Ireland. Some time ago, we had an estimate from the Chancellor of the Exchequer of what would be the yield of these new taxes in Ireland. I have gone into that question, and I am perfectly convinced that that estimate is very much lower than the practical results will prove to be. I will give the figures. The right hon. Gentleman estimated that the yield of the new taxes on spirits would amount to £169,000; of those on tobacco, £180,000; of those on licences, £104,000; and of those on stamps, £26,000. Then he lumped together the land, the motor, the petrol, and the Income Taxes and the Death Duties, and he stated that the total yield of these taxes would be £160,000 a year, making altogether a grand total of £640,000. Since the Chancellor of the Exchequer has made that estimate I have received estimates of the yield from various other sources, and I propose to give the House the figures. According to my estimate, the increased tax on spirits will yield not £169,000 but £1,406,000 The increased tax on licences will yield not £104,000 but £200,000. The increased taxes on tobacco will yield not £180,000 but £299,000, and the Stamp Duties will yield £100,000 instead of £26,000. It has been stated that in all probability the income from the stamp fees will be nearer £200,000 than £100,000. The yield from the increased Death Duties, assessed as they are on novel principles, it is estimated will be £1,000,000, and, according to another estimate, even as much as £2,000,000. I admit that as to the tax on land, minerals, motors, etc., we have no reliable data to go upon, but my total estimate on the figures supplied to me, leaving out these four taxes, amounts to £2,790,000, or, say, £2,500,000, which is all taken from Ireland as the result of the Budget now before us. There is a very great discrepancy between my estimate and that of the Chancellor of the Exchequer. It is hard to say at present which is the more correct, but this is a very serious matter for the country I represent, and the situation in Ireland is now viewed with considerable alarm.
I should like briefly to refer to some of these taxes. I will deal with the tax on spirits. The Chancellor of the Exchequer estimated the yield at £169,000. Now, the average number of gallons on which duty is paid in Ireland every year is 7,500,000, and if you take an additional duty of 3s. 9d. a gallon, a little sum in arithmetic brings out a total of £1,406,000. We are told, of course, there is too much whisky consumed in Ireland. I have no doubt there is, but I think there are many other things consumed in Ireland in excess, and of these tea is one. But that argument is beside the question. The point is that distilling is an important Irish industry, which gives a very large amount of employment, and which is of great assistace to agriculture, and we consider, quite apart from the question of over-taxation, quite apart, too, from the question of temperance, that a tax of 15s. 3d., which is what it now amounts to per gallon, is far too high for this industry, and is bound to affect it injuriously. Remember, too, that if the distilling industry is affected injuriously in Ireland that injury will react on the Irish farmer and the Irish labourer. There will be less employment in the towns and less tillage in the country. What we want in Ireland is more employment. It is the lack of employment which is largely responsible for the abnormal emigration from our country. Therefore, we cannot with any satisfaction view a proposal which unquestionably hits very hard at one of the few industries which is, by reason of their very rarity, of considerable importance. Then I come to the question of the tax upon licences for distillers and brewers. We have had no very reliable data upon this question. It is very hard to say how the distillers and brewers will be affected, but it is quite conceivable that very many of the people engaged in these industries consider that these increased licences will injuriously affect some of the concerns in that country. It is quite conceivable, too, that this tax may have the result of closing some of these concerns altogether, and that would mean loss of employment and loss of that market for barley and oats to the farmers who have hitherto supplied the distillers. Of course we are told that it will affect temperance to close some of these distilleries, but I do not know that it will. I doubt it very much. If people want drink they will get it somehow, and they will do it in spite of all the legislation that is ever passed, and if they cannot get a drink of home manufacture they will consume some imported drink, and they will assist the traders of a foreign nation. It is conceivable that this tax, by injuring the smaller concerns may help the larger concerns, and it is conceivable that by this tax you may be encouraging, directly, monopolies in regard to the manufacture of spirits or beer. But one thing is certain, that this tax will not help the localities where the smaller houses exist, and where you have few industries you cannot afford to lose any of them, and we cannot readily sanction that which, in our opinion, must react injuriously upon our country.
Now I come to the third tax, which I wish to discuss in regard to this Budget in relation to Ireland, namely, the increase of the public-house licences. There are two points I would like to make about this tax to start with, and the first is, that the publican in England and in Ireland stand upon quite different footings. In England the licence duty goes towards the relief of local taxation. In Ireland, beyond a certain amount which is allocated to our agricultural grant, the publicans' licences go to the Imperial Exchequer, so that in England higher licences mean lower rates, whereas in Ireland high licences mean that there is a greater amount from this particular kind of tax which goes to the Imperial Exchequer. Again, in England, when the publican's business is done away with he is compensated, but in Ireland he gets nothing at all. These two persons, the Irish and the English publican, stand upon a totally different footing, and it is not fair that similar legislation should be applied to both of them. I am not a publican's man, I say that at once. I have been a number of years in this House, and I have invariably supported and voted for temperance legislation for Ireland, but, after all, the publican is a human being, and has just as much right to fair play as anyone else, and just as much right to live as any man, and this House has no right to interfere with the business of these people in Ireland and to depreciate their property without doing what it does in England and giving them fair compensation. We should not object to the increase of the publican's licence duty if people who lose their business, or whose property is depreciated, were given fair compensation out of this tax, and if the right hon. Gentleman desires to raise these Licence Duties in Ireland as he proposes, we should certainly claim that part of the tax goes to compensate the people who are injured by it. The Irish publican after all is created by law, and exercises his trade under very strict legal regulations, and he has just as much right to have his property protected by law, as any other portion of the community. This question of the publican's licence may seem a small one, but after all it is a very important matter to these small men who have small businesses, and who have paid large sums for the goodwill of the businesses, and purchased the trades which they carry on. Taking my own county, which is not one where there are very many public-houses, the proposals of the Chancellor of the Exchequer in relation to licences means a depreciation of the property of the publicans amounting to nearly half a million. These public-houses are not in large towns, and are mostly country public-houses, and if the property is depreciated to that extent the publicans have a right to compensation, and if by the operation of this Budget the Chancellor of the Exchequer succeeds in suppressing a number of public-houses in Ireland, although he may think he can promote the cause of temperance, something else will take their place, and if you have not the legalised publican you will have the gentleman who will sell the people liquor in spite of the law.
Coming to the question of tobacco, it is a very curious thing that an attack upon what is a native industry in Ireland should come from a Liberal Government. For many years past we have been trying to encourage the growth and manufacture of tobacco in Ireland, and I think it is a very hard thing that this Budget should jeopardise the position of that industry. We have been assured by people who understand this question, that the Budget proposal will have a very injurious effect upon the cultivation and the manufacture of tobacco in Ireland. A considerable amount of money has been spent, and a great deal of energy has been expended on establishing the trade in the growth and manufacture of tobacco in our country, and there is very much to be said in favour of this particular form of industry which gives a great deal of a desirable form of employment, and which is very easily learnt. It is just the sort of employment which can be carried on in country districts. We regard with very great regret any proposal which would hamper this industry, or give it a kind of a set back. It must be remembered that tobacco growing and cultivation was a very important trade in Ireland in years gone by, and was deliberately suppressed by the English Government, at the instance of British manufacturers. We have started again, and we are meeting with some success, and I trust that this question will be further considered. Of course, we are told that the Chancellor of the Exchequer proposes to give us back from this tax some amount in some underground way, but if he is going to do that, what is the use of imposing it. I should like to say further that tobacco is really a necessary of life to a number of very poor people in Ireland. There are numbers of very poor people whose only enjoyment and luxury is tobacco, and, on humanitarian grounds, I would ask the Chancellor of the Exchequer to consider whether he cannot do something to lessen the taxation on the coarser forms of tobacco which is used by the majority of poor people in Ireland.
So much for the Tobacco Tax. I come to the Stamp Tax, and this in its incidence in Ireland is one of the most dangerous proposals in this Bill. Of course, the tax was conceived, no doubt, in view of the situation in England, and probably the Chancellor's advisers had not the least idea of how the tax would affect Ireland. If they had, I am afraid I cannot give them credit for such good intentions, as I would otherwise do. This is a, new form of tax. It touches a number of business transactions which escaped taxation before. This tax deserves to be most carefully considered by the representatives of Ireland in the interest of the Irish tenant farmers, and the first time it includes all land purchase transactions. Of course it is not easy to state as yet what will be the yield of the tax. A number of estimates have been made and suggestions thrown out. One important detail in relation to the tax has hitherto escaped notice. It has been roughly calculated that the amount of money requisite to purchase the fee simple of agricultural holdings in Ireland is something like £200,000,000. It is also perfectly well known by those who are accustomed to transact legal business in Ireland that farms as a rule change hands about once every 15 to 20 years. Under this new tax it means that the operation of its yield will be this: Every 15 or 20 years the Irish tenant farmers will pay £2,000,000 transfer fees. They will pay in addition £2,000,000 on the purchase price which they obtain for the farms they sell besides the tax which will be levied upon their interest in their farm. No one can tell how much that may be, but this opens a vista which is of very serious import, and this, of course, will only be one item of the incidence of the tax, because it applies to all legal business, to leases, deeds of gift, family arrangements, to every interest in land and to all the 101 transactions of this nature which go on constantly in Ireland. When the tax has been in operation some time proceedings in our County Courts will be surprising, because no legal arrangement will be binding or valid which has not paid all these taxes. That fact escapes general notice. The proper carrying out of legal arrangements in Ireland is not a matter which is usually followed, but with the imposition of this tax nothing can possibly escape it, and I fancy our County Courts will have some curious tales to tell. I object to the new taxes on land, on the general principle that Ireland already is overtaxed. The Land Tax is one which is capable of indefinite extension, and what has passed in this House while it has been under discussion confirms my belief that it is but the thin end of the land nationalisers' wedge. Land nationalisation and Henry George generally are anathema in Ireland. I do not know what view the Irish tenant farmer will take if he realises that this, while apparently an innocent tax, means that eventually there will be a Land Tax all over the whole of Ireland, and that is inevitable if we admit this principle. I do not see how, in the existing condition of things, there will be very much else left to tax in Ireland by-and-by by a Free Trade Chancellor of the Exchequer. I think under the circumstances we should pause before we allow this tax to be extended to Ireland. I understand the President of the Department of Agriculture or the Land Commission is at present the owner of whatever minerals there are over large tracts of land. Is the Land Commission going to pay the tax on the Land Commissioners minerals? If they are not, why should other people pay the taxes? They are ungotten minerals, and from my experience the Land Commissioners' minerals are more likely to remain undeveloped than those of anyone else.
The Chancellor of the Exchequer said by imposing the Motor Tax on Ireland he was remedying an Irish grievance, inasmuch as we have no Carriage Tax in Ireland. Historical recollections do not go back very far, but it happens that the exemption of Ireland from the Carriage Tax was the result of a Parliamentary bargain made in 1823, for reasons which at that time seemed good to Parliament. I do not think the tax will produce very much, but still, on general principles, I object to the tax, inasmuch as it means the breach of an arrangement entered into with Ireland by the House. The Petrol Tax will be a tax on locomotion, and perhaps on the development of industry, but I do not know whether it is a question which we need seriously concern ourselves with, inasmuch as the yield will be very small.
On these Benches there is very much enthusiasm in opposition to the Income Tax. I rather regret it, because the Income Tax was first imposed upon Ireland by Mr. Gladstone under the solenm undertaking that it was only to be imposed for three years. It was imposed on us after the famine as a set-off to certain loans which had been advanced for dealing with distress in certain parts of the country, which were being repaid, of which, I think, some three or four millions remained unpaid. The arrangement war that Income Tax was only to be imposed upon us for three years. That, like a good many other promises, was broken and the Income Tax has remained with us ever since, and that is unquestionably one of the largest items in Ireland's Bill of over tax. The continuance of the Income Tax is in reality a breach of a Parliamentary pledge.
I come to the most dangerous proposal of all, the increase of the Death and Estate Taxes, which will impose a very heavy demand on the pockets of Irish farmers and conceivably of Irish labourers. All property over £100 in value passing at death will be taxed, and the taxes will be greatly increased. Hitherto, land passing under the Land Purchase Acts has escaped by reason of a provision in the Budget of 1894, with the passing of which I had something to do. This Finance Bill removes the provision under which these farms were not subject to Death and Estate Duties. The result of that will be that in future all land purchased by Irish tenant farmers passing at death will be subject to these duties. The situation is serious enough, but it is complicated by the fact that the value of the tenant's interest in the holdings will also be added to the computation of the value of his property. In 1907 Irish tenant farmers paid Death Duties to the amount of £265,000 worth of property. Under this Budget they will pay Death Duties in future on the annual average of £5,000,000. That is something to think about when this Budget comes into operation. I am convinced that this particular detail of the Budget has been very greatly underestimated, and that in all probability this will be one of the most trying taxes which the Irish people will have to meet.
I wish to say one or two words on the general Constitutional question. In the Act of Union we were promised several things. We were promised that Ireland's taxation would never be increased beyond her relative capacity with England to bear it. We were told, secondly, that Ireland would never be heavily taxed. On both of those points Mr. Pitt and his supporters were most eloquent. We find a provision enshrined in the Act of Union that Ireland would have such special exemptions and abatements in the matter of taxation as her circumstances require. None of these promises were kept. In 1817 the Exchequers of England and Ireland were amalgamated, and in this amalgamation there was a saving of the Union promise which I have already quoted, and there was a further promise that Irish officials would be appointed to safeguard the interests of Ireland at the Treasury. Well, that policy has not been carried out. In 1853 Mr. Gladstone equalised the taxation between England and Ireland, and imposed taxation upon us which we were quite unable to bear. We were told by Mr. Gladstone and Mr. Cobden, who were leading lights in the financial world at the time, that many of the taxes then imposed would be temporary, but they were made permanent. I think it is time that some of the promises made when the Act of Union was passed, and again in 1817 and in 1853, were carried out. It is nearly time that something was done with respect to the continual breaches of solemn Parliamentary engagements. Under this Budget we are to have a huge increase of taxation. We cannot possibly support it. There is no use beating about the bush. There is no comparison between this country and Ireland. This country is one of the richest in the world, and Ireland is one of the poorest. It is utterly impossible for Ireland to keep house with England. We are in the position of a very poor man who has to live with a rich and extravagant partner. It is impossible to keep house at the same rate with him. We had some years ago a Commission of Inquiry into the financial relations between the two countries, and that Commission reported that Ireland was overtaxed to the extent of 2½ millions. Since that Report was presented you have increased the taxation by two millions, making the overtaxation 4½ millions, and now by this Budget it is proposed to add 2 millions more to our taxation. It has now reached the high-watermark, and it is time to speak out in the matter. Ireland cannot afford to pay this additional taxation. In view of the relations between the two countries I say the time has come to give us the benefit of some of the Act of Union promises. It is time to give us the special exemptions and abatements which were promised at the time of the passing of the Act of Union. The Chancellor of the Exchequer may say that it is impossible for him to give Ireland special abatements, because if he did so it would disturb the balance of the Budget. It is not our business to point out to him how he can redeem the promises which were made, but there is one way in which he could redress the grievance to some extent, and give Ireland the benefit of her legitimate rights. Let him leave Ireland out of this increased taxation altogether, and reimpose the coal tax. That will give him the two millions he wants, and that will settle the question of overtaxation, so far at least as the proposals contained in this Budget are concerned. No matter how much we may believe in the good intentions of the Government, the Budget is such that we Irish Members cannot let it pass in silence. The situation is such at present that we must make a stand against it. It is our duty to oppose this Budget by every means in our power, and I am confident we will oppose, it to the best of our ability, firstly, because it is a breach of the Union promises; secondly, because it is in opposition to the Report of the Financial Relations Commission; and, thirdly, because the burdens to be imposed are such that Ireland cannot bear them.
I hope the hon. Member who has just sat down will not deem me discourteous if I do not follow him in the interesting speech to which we have just listened. The grievances of Ireland always find a sympathetic listener in me, but he will forgive me if I pass on to devote my remarks to more general consideration of the financial proposals to which I have devoted more attention. I think it will be generally agreed that this Debate, lasting over two or three weeks, is one of the most important, significant, and pregnant that have taken place in this House. After listening to the speech of the Leader of the Opposition and the brilliant reply of the Prime Minister, I could not help wishing that the electorate of the United Kingdom could have heard those speeches or that they could hear the whole debate on the present Budget. Hon. Members opposite comfort themselves with the thought that they will be returned to power at next election. [An HON. MEMBER: "Hear, hear."] An hon. Member opposite cheers that statement. I think he would have some doubt on the subject if he knew that this Debate had been heard by the electorate of the United Kingdom. It seems to me that there never was a time when those who criticise these proposals in the Budget had more need to present constructive criticism and not destructive criticism of what is before us, because, while I should be the first to deny there has been a financial crisis, undoubtedly there is a financial difficulty before the country at the present time. When hon. and right hon. Members criticise these proposals, it is incumbent on them to tell the country what they would put in their place. Now there has been an entire absence of any concrete constructive suggestion from the opposite Benches in this Debate. What has become of the programme of October, 1903? It has disappeared, and nothing has been set up in its place. As hon. Gentlemen have been so modest with regard to their own policy, may I be allowed to try my prentice hand? May I be allowed to suppose what a Tariff Reform Chancellor of the Exchequer would do in the present circumstances? ["Hear, hear."] The hon. Member (Mr. Rowland Hunt) cheers that remark, and he would be the first to admit that the food tax is pledged. Hon Members opposite cannot use it for revenue purposes. Anything they put on bread they must take off sugar. Anything they put on meat they must take off coffee and cocoa. They make a great feature of cocoa in their representation, and then with regard to the money produced by the tariff—
The foreigner pays that.
I am delighted to hear that remark. It brings me to my next point. I am going to suppose as a Tariff Reform Chancellor of the Exchequer what I should do. We import about £200,000,000 worth of raw materials every year and £150,000,000 of manufacture. That is £350,000,000, and the foreigner pays the duty. The hon. Member says so. I put on a duty of 10 per cent., and immediately I get £35,000,000 a year. The hon. Member need not trouble himself with regard to our re-exports or about drawbacks. What need for a drawback when the foreigner pays the duty? There is no need to return to the merchant who re-exports imported goods the duty which has been levied, because he never pays it. It is paid by the foreigner. So simple is Budget-making on these lines. It is magnificent, but it is not finance. As a matter of fact, the foreigner does not pay the duty, and, indeed, let the hon. Gentleman reflect that if the foreigner did pay the import duty there is no such thing as Protection in the world. And why? Let us take the position of the manufacturer who wants protection against the foreigner. Why does he want protection? Because he cannot produce at the foreigner's price. That is why he wants protection. He says he is losing because he cannot produce at the price, and he wants the import duty in order to raise the price. If the hon. Gentleman does not believe that let me refer him to the definition of "Protection in a nutshell," which was given by the Leader of the Opposition in Edinburgh a year or two ago. What did he say? He said: "Protection in a nutshell amounts to this—the use of import duties to manipulate prices." He said that if the price was not raised the industry was not encouraged. Of course not. If the foreigner does pay the duty as the hon. Member suggests—
Some of it.
Then, of course, you get the position set up which obtained in the old days of Tariff Reform in this country. Some of the hon. Members will remember the Select Committee in this House that sat on the question of import duties. One of the things that it pointed out was the contrast between the two opposite aims, the aim to get revenue and the aim to keep out goods and make work. They are not consistent. I see that they are still in the minds of hon. Gentlemen opposite. Let us suppose the foreigner does not pay the duty. What do hon. Gentlemen opposite think they are going to reduce our imports of manufactures to? Shall we say £100,000,000? If so, a 10 per cent. average duty will produce only £10,000,000 per annum, so that the tariff would not meet the present situation. But is the present situation the end, or have we seen the end of the increased expenditure? I am afraid we have not seen the end, whatever Government or whatever party is in power in this country, or, indeed, in any other country. And why? It is not a mere question of armaments. Whether or not the competition in armaments proceeds, as unhappily it is proceeding, this is certain, that there will be an increase of expenditure for social purposes. Expenditure for social purposes is increasing in every country, and will increase in every country, and it will be incumbent on this nation, if it is to keep its place in the ranks of civilisation, to increase our social expenditure. Therefore the policy of hon. Gentlemen opposite is no alternative to this Budget. It is nothing but a stopgap. It does not meet the present situation. Still less would it meet the situation in the time to come. Therefore hon. Gentlemen opposite have got to consider what policy besides Tariff Reform they would suggest. Tariff Reform admittedly would supply some millions. That would not meet the present situation, and they have got to consider this Budget on its merits, or else present something as an alternative. That they have signally failed to do. They have failed to produce the Tariff Reform concrete proposals. They have failed to tell us what in addition to a tariff on imports they would suggest, but they have told us that our proposals are frightening capital away to foreign countries. I need not go over the ground so well covered by my right hon. Friend the Chancellor of the Exchequer in the brilliant speech to which I listened yesterday, but I would like to give one or two con- crete facts with regard to some of the leading nations of the world and with regard to what the taxes are at the present time. A point was raised with regard to France. As my right hon. Friend pointed out, although the French have not got nominally an Income Tax, they have in reality a number of taxes which are Income Taxes. If any hon. Member doubts that, in my opinion this quotation from a speech by the French Minister of Finance, made on July 12th, 1906, should dispel those doubts. Speaking of France he said:—
"To replace our four direct taxes by Income Tax would require a tax averaging 8·4 percent. without counting the departmental or communal additional centimes. The Income Tax will one day replace all four."
In the meantime, those taxes amount to an Income Tax in all but name.
Is there any Income Tax imposed on professional incomes?
I am sorry I cannot answer that question off-hand, but I think the answer is yes.
I think it is no.
With regard to Prussia, it was stated by the right hon. Gentleman the Member for Durham that the Income Tax did not exceed 4 per cent. While that is true literally, he overlooked the fact that companies in Prussia are in many cases twice taxed. The Prussians tax at the source in this way. They make the company pay Income Tax on the corpus of the dividend, before anything is distributed, but they allow first a deduction of 3 per cent. That is to say, if a company is making a 10 per cent. dividend, 3 per cent. is allowed on the dividend, and the Income Tax is levied on the remainder, and when the dividends are distributed the shareholders are taxed again on what has been taxed already. The rates in that country are chiefly levied in the form of graduated Income Tax, and it follows that the rich men in Prussian towns pay a larger proportion of rates than rich men do here. Imagine a man of £20,000 a year living in a house the annual rental of which is £600. Here he would pay, I imagine, as rates 10s. in the pound, as is the case in my own Constituency, and his rates would amount to £300 a, year. He would pay a local contribution of £300 a year. In Prussia he would pay the maximum of the local tax, which would be £800 a year instead of £300 a year, by the operation of the local Income Tax. That is a very important fact in comparing the taxation of the rich man in Prussia with the rich man in England. It is only fair to say with regard to Prussian towns that the rich men of those towns— though there is not a democratic franchise and the town council is elected on a property qualification—do not hesitate to embark on an expenditure which would stagger a great many of our British town councils. But not only that. You also find in towns like Munich that rich German citizens are not only content to pay this graduated local Income Tax, but when they die they leave great sums to the local authority for the erection of schools, baths, and other beneficient institutions.
What Death Duties are there in Prussia?
My hon. Friend is certainly right in reminding me of that, but I would remind him of the fact that these taxes in Prussia are just about to be very largely increased; further taxes are under consideration. There is another 25 or 36 millions of taxation needed in Germany.
But the Budget Committee so far have rejected every one of them.
That does not alter the fact. My hon. Friend knows perfectly well that Germany cannot afford to go on borrowing to meet a deficit year after year in this way, and she must impose taxes. The amount of 25 millions, or I think it will be 35 millions, will certainly have to be raised very largely by taxation, although the rich men of Germany, as I have already shown, are already taxed, I will not say as much as rich men are here, but, at any rate, they certainly bear a larger proportion of the expenses of the country than is borne by rich men here. One cannot forget, in comparing British and German taxation, that Germany has got great State assets. Look at Prussia, where £35,000,000 a year goes into the pockets of the State from the railways, while here £44,000,000 a year goes into private pockets instead of into the pockets of the State. What a difference that makes to the task of the Prussian Chancellor as compared with ours. In Austria there is really a double Income Tax, because you have an industry tax, a business tax, and you have got a building tax besides a dividend tax. A busi- ness man carrying on a business and living in a house is taxed in regard to these things in the first place. There, when these taxes have been paid, they start again, and take the income as a whole and tax that, so that there are two Income Taxes in Austria. I do not know whether hon. Gentlemen opposite think that is a country to which British capital would be likely to fly from the depredations of my right hon. Friend. I think capital would scarcely go to that country.
Another cry which we have heard very much from hon. Members opposite is the cry of robbery and vindictiveness. ["Hear, hear."] Yes, I see that has not yet been dispelled from the minds of hon. Gentlemen opposite. Have they read the Budget Debates of 1894; have they read the epithets used against Sir William Harcourt in regard to the Death Duties? If they have they will have seen that the epithets used on this occasion, however exaggerated, did not exceed in violence the language used on that occasion. The Liberal Government of that day was told that very soon after the Tories again came into power the Death Duties would be abandoned. Were they abandoned? As a matter of fact they have remained, and have become the sheet anchor of British finance. Not only that, but it is on record that a Unionist Chancellor of the Exchequer very seriously thought of increasing the Death Duties—the very instrument which has been denounced as the instrument of oppression. I venture to prophesy that in the years to come, whether or not we get Tariff Reform, we shall certainly get a Unionist Government, and when we do get such a Government— some 15 or 20 years hence—I make bold to assert that these imposts which they are now denouncing will be gladly welcomed by them as a means of carrying on the Government of this country. For, after all, however we may differ on party grounds, when we come into office the sense of responsibility does assert itself. We know that the Government has got to be carried on; we know we have got to meet the daily increasing demands, social and other, of the country. So that a Government coming into office finds itself compelled to do what it has denounced when out of office. I do not think that the hon. Member for Dulwich (Mr. Bonar Law) was well advised in denouncing what he described as the Socialist provisions of this Budget. Whether Socialist or not, they are eminently sensible, and they are eminently popular. ["Oh!"] Yes, popular. If hon. Gentlemen opposite desire to stimulate the Socialism of the people of this country, I can imagine no better means than that of labelling as Socialistic all the propositions of the present Budget. The hon. Member for Dulwich referred to the Socialist nostrums put together of my right hon. Friend the Chancellor of the Exchequer. What are these Socialist nostrums? There is the graduated Income Tax. We have had it described by Professor Martin as the ideal tax. To-day we heard again the right hon. Gentleman, the Leader of the Opposition, agreeing, as every man must agree, as to the justice and expediency of some form of graduation. [An HON. MEMBER: "It is a question of the extent."] That it is a question of degree is the case with every tax. This proposition was denounced by the hon. Member opposite "as the bitter cry of outcast Socialism," if I may translate an old phrase. Take another chief item, that of the Death Duties. The Death Duties have been favoured by every economist who has ever written on taxation. And take the Increment Tax, which I am very glad my right hon. Friend has adopted. It was suggested by John Stuart Mill, and is used widely in the towns of Germany, and it has passed the Finance Committee of the Reichstag, not only as a proposition with regard to lands, but as a proposition with regard to all forms of property. ["Hear, hear."] I am glad to hear that, because I take it to mean this, that hon. Gentlemen do not object to the taxation on unearned increment, but what they object to is that it is imposed on one form of property only, and not on other forms of property. They want to see my right hon. Friend apply the same principle to stocks and shares and other forms of property, and then I understand they will be quite content.
I am sure the hon. Gentleman does not want to misrepresent the case. Does the hon. Gentleman say that this Increment Tax abroad is used in any part of the Continent as an Imperial tax?
No, I do not suggest that; but the finance of this country as between the Central Exchequer and the Local Exchequers is so inextricably commingled that we have a central authority doling out sums to local authorities. So that I am sure my hon. Friend, of whose interruption I do not complain, will really see that though we apply those taxes centrally instead of locally, we are merely meeting very largely the same charges that are met in Prussia by the local tax. I do not mind saying I myself would prefer to see these local taxes, but so far as any defence of the tax is concerned, if it is defended as a local tax it must be also defended as an Imperial tax, especially in view of the fact that there are great difficulties in local application as to the areas controlled by the different local authorities. I am not sure that it would not be better to have it collected centrally and equalised in distribution. Another charge made against this Budget is that it is a Henry George Budget. If hon. Members really believe that I would recommend them to turn to the current issue of "Land Values," the organ of the Land Value League. They will find there a denunciation of the humble person who is now speaking as a Tory. I need not be desolated by this criticism, since I find I share its bad opinion with the most exalted persons. This is what "Land Values," the organ of the Henry George League, says of the Government:— deal of exaggeration, both in the House and the country, with regard to the place which land plays in modern civilisation.
The question why it is that the landlords with all the economic power which they possess should only be able to draw what is really quite a small fraction of the national dividend or national income of the country is really a very important question. Unless one understands it one rather fails to comprehend the economic structure of modern society. At the time when employment and industry was chiefly agricultural, at such a time as that landlords were able to draw the lion's share of the work of the nation, but as science and the engineer made it more easily possible to produce food with less labour, what happened? This happened—that the price of food fell remarkably, that the number of people in the world engaged in raising food fell, and continued to fall, and that the population of the modern States passed very largely from the country to the town. That was the industrial revolution. What was the result of it? In regard to rent, the result of it was this—the price of land fell in the greater part of the country. In certain small exceptional parts of the country land rose in price. The net result to the landlords was this—the total amount of rent they were able to draw in respect to the land of the country as a whole rose, in spite of the falling agricultural land, which was more than compensated for by the rise in the urban values. But while that was true the proportion which the rent bore to the total dividend of the country fell remarkably, and continued to fall. So that in the old days, while rent was the chief property and the chief form of unearned increment, at the present time the position is very different. The greater part of unearned increment is not taken at all by the landlord as rent, but taken by the capitalist as interest. That is a proposition which cannot be denied, and, of course, can be proved statistically. When Henry George came with his gospel to this country many were surprised to find when he was answered by a celebrated statistician, who pointed out that the main thesis of "Progress and Poverty," that the landlord took the chief part of the benefits was not the case. Interest increases much more rapidly than rent.
Do I understand you to say that in new countries like the United States the value of land fell with a decrease corresponding to the decrease of the agricultural population?
No; new tracts of land are so rapidly brought into cultivation that, of course, the total amount of agricultural rent would continue to increase. But the same process must go on, and the same arithmetical result must eventually occur. In the long run in any country you will find that the greater part, of industry will be industry in. the production of goods, and not industry in the production of food. Of course, it is fortunate. Some people regard it as unfortunate; they keep on dwelling on the fact, and asking, "Why cannot we get the people back to the land?" The reason is a very simple one, and you will never get them back to the land because they are not wanted on the land. That is to say, the number of people required to grow the food of the world and grow raw material will be always decreasing in proportion to the population of the world. You cannot prevent that, nor would it be well that you could, because man does not live by bread alone and by the production of raw material alone. It is a good thing for mankind if the States will have the sense to see to it that your towns develop healthily. The importance of the land question to the towns is not the question of providing land for the basis of industry, because land is but a very small part of the nation for that purpose. Take all the factories in the United Kingdom and bring them together, and you would find that they would occupy but an exceedingly small area. The entire industry or work of the community is done on a tiny part of the land of the country. What you want area for—and area is the distinctive principle of land—is to make healthy towns, and I should think it a great misfortune if from anything done in this Budget, or from any of the principles enunciated in this Debate, it were thought that some trumpery little tax on land values or anything else would give you healthy and proper towns. It will not do it. If they really think that by taxing land out of the hands of one man into the hands of another they will perform a great social function, I venture to say that this House, or the majority, are labouring under a very great delusion; and, unfortunately, it is a delusion which would be lasting in its effects, because while you are waiting for this impossible thing to happen, while you are waiting for B to do something to the land which he has bought from A, what is happening to your town meantime? Years are passing, and a fresh generation of children are growing up in the slums which are forming while you are waiting for the tax to work. If you really want your towns to develop healthily it is necessary for your towns to acquire land, so that they may plan out their roads, and see to it that, at any rate, the errors of the past are not repeated in the new parts of the town which are presently forming. I should like to see the Local Government Board, or some other authority in this country, circularising local authorities, as the Prussian Minister of the interior circularised Prussian towns some years back, pointing out that the thing to do was for the towns to acquire as much land as possible as soon as possible. If that were done, then, indeed, there would be hope for the town populations of the future. Let it not be forgotten, if there is any truth in what I have said, that it is the town populations of the future that most need your care. I do not want to depreciate any of the efforts of my hon. Friends. I respect their efforts in regard to small holdings and the condition of the villages and of the agricultural labourer. I simply remind them that, if there is any truth in what I have said, they must at the same time, and even in the first place, remember that the greater part of our people are in the towns, and will remain in the towns, and that if they merely devote themselves to the agricultural question they will be devoting themselves to the smaller and the diminishing part of the industry of the country instead of to the greater and the growing part.
I am afraid I have dwelt at greater length than I had intended on this point, but the subject is really a great and important one, and it has seemed to me that in this Debate we have got things a little out of focus. It has been land, land, land, all the time. It is not sufficient to say that land is a monopoly, that land is limited, and that these considerations differentiate land from all other forms of property. These propositions will not stand logical examination. For instance, it is said that land is limited. Of course it is limited. The world is limited. Everybody in it is limited. Everything that comes from land and labour is necessarily limited. It is not sufficient to say that land is a monopoly. There are many other things that are greater monopolies than land, even in this country. For example, if you want to buy wall paper, you will find that there is in reality only one shop. If you want to buy a reel of thread there is really only one shop. There is only one manufacturer of sewing thread in this country. ["Oh, oh."] If my hon. Friend who interrupts, either with his own capital or with borrowed capital tries to establish a thread industry m this country he will find it absolutely impossible. The Trust have got hold of the whole thing, and are in such a strong position that either foreign competition or home competition is absolutely impossible.
We are importing wall paper now.
:I can assure my hon. Friend that the Wallpaper Trust have arrangements with shops and dealers who are under contract not to buy elsewhere. It is not a true argument to say that the real difference between land and other forms of property is that land is a monopoly. There is no more monopoly in land in this country than there is in many other things. The real distinction between land and other forms of property is the element of area, and that is why the State has always, will always, and must always, differentiate between land and other forms of property. The man who possesses land can prevent access. He can prevent the community from growing in certain directions. He has a control which is not given by other forms of property. But that is not because of the other points which have been so often advanced, but because of that single point of area. As a matter of fact, the greater part of the land of the country is, fortunately or unfortunately, at a very low price; and I am not sure that it would not be a good business transaction for the State at the present time to acquire the whole of the agricultural land in the Kingdom. I believe we shall see a rise again in rent and in the price of agricultural land. It should also be remembered, and I do not think this point is sufficiently appreciated by my right hon. Friend on the Treasury Bench (Mr. Churchill), that land is so far from being a monopoly in regard to any particular use that it is very rarely that the whole of the value of the site is expressed as land value. The greater part of shop-keeping, for example, is simply traffic in site value. That is so in regard to any particular use or any particular neighbourhood. There is sufficient competition between landlords to enable a man who can put down capital to acquire a site out of which, in spite of the toll taken by the landlord, he can make a very considerable profit indeed. The most remarkable instance of that that I have seen in the case of London is the London tea-shops. What is the London tea-shop value? It is really the exploitation of site value. You find a number of companies who are able year after year to draw the most magnificent dividends, which are really merely an expression of site value. A great deal has been said in regard to the difference between unearned increment attaching to land and unearned increment attaching to other forms of property. I cannot recognise that there is any difference. I think the effect of the whole of the arguments of hon. Gentlemen opposite was not so much to urge us not to tax the unearned increment attaching to land, but rather to establish the most striking case out of their own mouths for the taxation of other forms of unearned increment also. Land value is the most obvious case of unearned increment. It requires a rather greater effort of thought to see that unearned increment attaches to other things as well. In reference to land values, the Lord Advocate replied to the witticism levelled at him in regard to his prairie value on the top of a Scottish mountain. What did the Lord Advocate say. He said: "If my work were transferred to a populous community what would my prairie value be then? Nothing, unless I worked." He seemed to think that that was logical. But it is not. In a rich community with a large amount of increment in the possession of people willing to employ it, then he may earn very large fees indeed. The difference between the large and the small fees is not the difference in his work. It is really unearned increment. Take the most ordinary case of King's Counsel. King's Counsel, I may remark in passing, are in the main a monopoly. In the first place, the number mast be limited to men of good education and large training. Secondly, those concerned make the monopoly as close as possible. With regard to work done in a litigious community that the Lord Advocate spoke of, as a matter of fact, if the Lord Advocate did not find in a community persons in possession of very large incomes, in themselves the expression of unearned increment, then large fees would hot obtain.
Take the washing of domestic linen in public by people who have so much time on their hands that they spend it in amusements which need not be particularly described. There you see King's Counsel earning their large fees by a process whirl is not particularly admirable. Take for example a case of King's Counsel tearing to tatters in the witness-box, as is very often seen, the honour of a woman. What is he doing? He is really performing that which is of no social value to the community. It would be much better for the community if that case had never been heard. He will draw his fee simply because of the unearned increment in the community. That has passed through my mind as I heard the Lord Advocate saying that the work of a popular King's Counsel was one to which no earned increment attached. Again, if, as urged, the landlords have the chief economic pull in the country, if Henry George's theory is correct, then the greater part of the income of the community would be drawn from the landlord, and only an Income Tax would be needed to recover it. In other words, if the theory of "Progress and Poverty" is correct only an Income Tax would be needed to recover for the community the whole of the unearned increment.
I was very glad to hear the right hon. Gentleman the Leader of the Opposition give once more his assent to the principle of graduation. His only caveat on that point was one of degree. I think I can submit with some confidence that our taxation, even with the levying of the present new taxes, is still exceedingly light. In the forthcoming year my right hon. Friend will only raise what would equal an Income Tax of 1s. 6d. in the £ on the entire community. As I was able to show two Sears ago the Income Tax then bore rather heavier upon the poor than upon the rich; so that the present adjustment cannot be said with regard to that point of degree to inflict upon the rich an undue burden. It is an interesting fact that if Pitt's Income Tax of 2s. in the £—which was graduated below £200—were levied on the present income of the country, it would produce £113,000,000. That will show very clearly that there is no question of trenching on the war reserve. I think that point has certainly not yet been reached.
There is only one more point that I would like to deal with, and that is the question of the Death Duties. The hon. Member for Chelmsford (Mr. Pretyman), who has made several interesting speeches in the House on that subject, took the calculation of Sir Henry Primrose with regard to setting up a sinking fund to meet the Death Duties. That calculation of Sir Henry Primrose will not bear examination. If the hon. Member for Chelmsford will consider the matter he will see this: that all that is needed to set up a sinking fund to meet the Death Duties is to consider, as Sir Henry Primrose does, the length of the average generation—that is, 30 years—and to insure accordingly. At the present time you can buy £100, payable at the end of 30 years, for £2 a year. It follows, therefore, if we take a millionaire's estate, the millionaire, by setting up a sinking fund equivalent to an Income Tax of 1s. 4¾d. in the pound, can meet the Death Duties payable at his decease. That means, of course, a very much less sum than represented by Sir Henry Primrose, and very much less than the hon. Member for Chelmsford believed when he submitted his figures to the House.
Does that allow anything for the income which is lost by the large slice taken out of the corpus?
That would add a fraction more. But the amount is nothing like that suggested in the speech of the hon. Member for Chelmsford.
The Budget, as I said at the beginning, has stood the brunt of several weeks fierce criticism in this House. I would not say it has come through unscathed, because it is impossible to frame so complicated a Budget so as to meet every objection that can be raised. But the speeches which we have listened to to-day, like the speeches we have heard before, are no justification foe the rejection of this Bill. A case, it may be, has been made out for some modification of the Bill in detail. Take the moderate and excellent speech of the hon. Member for Kingston (Mr. Cave), or take tie speech of the right hon. Gentleman the Leader of the Opposition. I would not go so far as to say that he praises the Budget, but he certainly agrees with two-thirds of it. There was nothing of condemnation in the speech of the Leader of the Opposition—it was really difficult to believe that that was a speech being made in the House of Commons in support of the Motion for the rejection of this Bill. The right hon. Gentleman referred to a subject which I have often brought before this House, that is the subject of graduated Income Tax. I should like to be allowed in conclusion to once more urge that principle and the extension of that principle. For what reason? Is it not an insult to the intelligence of the electorate, to its men, rich or poor, when you make an appeal for national expenses, to suggest that they would rather be taxed in 101 different odd ways, the rich man by a tax upon his contracts, motor cars, etc., instead of having a clean bill presented to them for their contribution to the national expenses? I believe that the average intelligent working man would rather have a penny or twopence deducted from his wages as his contribution to the expenses of his nation rather than his wife should be robbed every time she goes to shop to buy the necessaries of life. Surely when the proposition is fairly presented to the nation there can only be one answer. I showed at the beginning of my speech that it is not possible to meet the present situation by means of import duties; that they merely at the best form a stop-gap that you cannot possibly hope to meet the expenses of the future with. Hon. Members must admit that. They are promising up and down the country that they will make more work by keeping out imports and manufactured goods, but they cannot at one and the same time do that and provide increasing revenue to meet the increasing demands made by the Exchequer. If, therefore, there are any more speeches made to-night from the benches opposite, let them not merely denounce the proposals which have been made to us by my right hon. Friend the Chancellor of the Exchequer, but let them tell us what their own proposals are.
I think the House has listened with great interest to the speech of the hon. Member who has just sat down, if only for the mental gymnastics, they must have found it afforded in trying to find out what it had got to do with the Finance Bill. I think it was a most ingenious speech, and it was not the, less ingenious in its attempt to try to draw a red herring across the path by discoursing on the subject of Tariff Reform instead of the Finance Bill. We are here tonight dealing with the financial proposals of the Government. We are not concerned as an Opposition to put forward alternative proposals. We are only concerned to show the injustice of the proposals put before us. Fortunately there has been very little waste of time in discussing alternative proposals. I would like to say just a few words in regard to what fell from the hon. Member for Preston (Mr. Harold Cox). I was rather surprised that he resurrected the old cheap jibe against Tariff Reform that they were under the impression that they could get both revenue and protection from the same duties at the same time. No Tariff Reformer contends that. Tariff Reformers are quite content to get one or the other. In the first years of the tariff we shall probably get revenue, and it will be quite time enough to alter that tariff when the revenue has fallen owing to its protective action. This Debate has, of course, been so much concerned with land that very little has been said upon other questions. I think that is a pity. I think far less has been said than was necessary upon the Sinking Fund. I forget who the speaker was that pointed out that it might be advisable to meet part of the deficit out of loan. That was not very favourably considered on the other side of the House. I think it worth pointing out that notwithstanding all their boasts about meeting naval expenditure out of revenue, what the Government are really doing is paying for the increased naval construction out of loan, because by cutting down the Sinking Fund by £3,000,000 it means £3,000,000 extra expenditure is going to be added to the National Debt at the end of the year. I think that is a very curious way of finding expenditure, in view of the enormous revenue which the Government hope to get.
Of course, the chief objection we take to this Bill is it is finding far more money than is necessary for the year. The Finance Bill of the year, according to its short title, is to make provision for the financial arrangements of the year. We all know the financial arrangements of this year figure comparatively small in this Budget. The real object is to make use of a temporary, financial difficulty to induce the country to accept a new machinery which will necessarily not be speeded at first, but which will ensure a huge prospective surplus in future years. None of us know what this surplus is. The Chancellor of the Exchequer has carefully avoided giving any idea of his probable surplus in this House. He has reserved his confidence for the "Daily News," and he said in the course of an interview with the "Daily News" that he will probably have a prospective surplus of £8,000,000. I think it is most inadvisable, from the view of economic finance, to have this enormous prospective surplus. I think the right way of raising money is to face your Estimates for the year and then describe the methods for raising the money. If you are going to have this huge surplus I think it will undoubtedly lead to a great deal of extravagance. Of course, the real objects of this Budget are not financial so much as political. The Government know that frontal attacks upon our industrial system are doomed to failure. So they are borrowing the methods of the Fabians and trying to turn the position by a flank movement. Undoubtedy this attack upon capital must make it dearer if a capitalist is going to put his money into enterprises in this country. He will insist upon a higher return to reward him for his increased risks, and the industries of this country will be compelled to pay far less favourable terms for the use of money than municipalities and local authorities. Municipal enterprise will be free from Death Duties, Super-tax, and Land Taxes, and one of the effects will be to encourage the municipality to go in for a far larger system of municipal trading. It is assumed by hon. Members on the other side that the Reversion Duty is not going to check enterprise. I will not go into it on its merits. In know there is no justification for picking out this particular form of tenure, and for throwing this very heavy burden upon it, whereas you let the freeholder off scot free. It will discourage building for this reason: At the present time the builder can sink practically the whole of his capital in bricks and mortar. The leasehold system has sprung up not only for the profit of the lessor but also for the profit of the lessee. The builder is saved from the necessity of sinking a large amount of his capital in buying up sites, and his tenant has not been in the position to buy the particular holding, and therefore more money is available for building by borrowing on and sinking the whole of the available capital in the building. I think there is absolutely no justification for saying that that particular form of house property is to bear a burden which is entirely escaped by freehold property. The only explanation is that hon. Gentlemen opposite dislike ground landlords, and they think that any means are justifiable in trying to dispossess them. The only other point which I wish to mention on these Land Taxes is the Increment Duty, in its action on local authorities. The Chancellor of the Exchequer was asked one day this week how it would act upon the betterment charges which were allowed under certain private Acts possessed by the London County Council and other local bodies, and he said it would not affect those charges, because betterment charges would remain first charges, and the Exchequer would only come in after betterment charges had been satisfied. In the case of London the betterment charge is assessed upon one-half of the increased value seven years after the improvement takes place, and in that case the unfortunate owner will have to pay half to the local authorities and one-fifth of the remainder to the Exchequer.
But what is the Chancellor of the Exchequer going to do in the case of betterment charges under an improvement scheme if the Housing and Town Planning Bill passes? The Government, we are assured, intend to press that Bill through. Under that measure there is a provision that where any owner has obtained an increase in the value of his land owing to a town planning scheme the local authority can recover the whole of the value from the owner. A town planning scheme includes all matters of sanitation, the laying out of land, the conveniences and amenities of the land, and so, obviously, it would include a great many improvements which are really carried out by private capital. It would include the road and the sewers, and the various expenses to which owners are put, and I think it is absolutely unjust to confiscate the whole of this expenditure for the local rates. I think this really shows that the Government do not know their own mind in this matter, because if they intend that the whole of these improvements in value are in future to go to the local rates where is the increment duty going to come in? These Land Duties have been dealt with at length, because they are the most unjust proposals in the Budget, and certainly the most novel, but I think it is important to remember that the real objection which is taken to the Budget is that these duties do not stand alone, that the same people who will have to pay these unjust taxes will also be hit very hard by Parts 3 and 4 of the Finance Bill. Hon. Members opposite seem absolutely incapable of realising the cumulative effect of the various taxes which are being brought in, and they can only look at these taxes one at a time. Hitherto in these discussions we have been at a great disadvantage in this matter because whenever the individual taxes were under discussion in the Budget Resolutions, as soon as we tried to point out that although they might be justified individually, considered in connection with the rest of the burdens they were unjustifiable, we were out of order. The spokesmen for the Government realised the advantage of only dealing with these taxes one by one. We object to the whole Budget, because we believe that the same people will have to pay one tax after the other, and this Bill will have a disastrous effect upon the general prosperity of the country. Of course, there has been a great deal of random talk about taxation abroad. Here, again, hon. Members are absolutely incapable of considering the whole of the taxation abroad, and comparing it with the taxation of this country. No doubt that would be very difficult to do. The Chancellor of the Exchequer yesterday discussed the Death Duties in France, and I think that the hon. Member for North Paddington referred to the same subject to-night. But it ought to be pointed out that the Death Duties in France are placed on a different basis from the Death Duties in this country. In this country we have got two different principles of graduation. In France the great object is not to discourage savings. In France people save to leave their children in as good a position as themselves. Death Duties in the case of all lineal successors never amount to 5 per cent., and they reach that amount when the individual legacies are over the amount of fifty million francs. The Death Duties in France cannot for one moment be compared with our taxes, which, by a combination of Estate Settlement, Estate and Succession Duties, may take 20 per cent. from lineal descendants. If they can be compared with anything they can only be compared with our Succession Duties, which depend on relationship to the testator. The hon. Member opposite said that the Income Tax in France is really more onerous than in this country. But the Income Tax in France is only charged on unearned income. The hon. Member for North Paddington believes that it is charged on all incomes. I agree with him that it is rather a difficult question to understand. There are three taxes in France which can be discussed in relation to our Income Tax—a tax on land, a tax more or less on rateable value, and a tax on the yield of investments. None of these taxes hit earned incomes. For that reason the French system cannot really be compared with our system of Income Tax. There is one point in the speech of the Chancellor of the Exchequer yesterday with which I should like to deal, because it showed a most extraordinary controversial method. He was dealing with the statement of the hon. Member for Dulwich, that the Colonial securities were benefiting by the taxes which are imposed in this Budget. The Chancellor of the Exchequer said that money was flowing into New Zealand, and he went on to pour well-deserved ridicule on the idea that money could be driven out by the Land Tax to New Zealand in view of the fact that the Land Tax in New Zealand is far higher than it is here. But the hon. Member for Dulwich had not said a word about New Zealand. The only Colony he instanced was the Colony of Canada. Of course, New Zealand will not be benefited by these taxes on land, but Canada will, because Canada has realised the necessity to encourage capital to find investment in that country. The Chancellor of the Exchequer dealt with New Zealand, and I think it is rather instructive to compare the results of the predatory taxation in that country with the results of the taxation in Canada. One cannot take Government securities because they are trustee stocks, and are artifically inflated for that reason. But take the municipal loans in Canada and compare them with those in New Zealand, and you will find that New Zealand is paying very heavily for the Socialistic finance of that country. We will take three of the principal towns in each Colony. In Quebec the yield of a municipal security is £3 15s. 3d., in Montreal it is £3 17s., and in Toronto £3 16s. 6d. Now we come to New Zealand. In Auckland it is £4 9s. 6d., in Christchurch £4 5s. 9d., and in Dunedin £4 9s. 6d.; so that this Socialistic legislation in New Zealand, which the Chancellor of the Exchequer held up for our admiration yesterday, has for its result that the municipalities are called on to pay at least a per cent. more than is paid for capital by municipalities in Canada. I think that is a very costly way of raising money, for the advantage to the Exchequer is more than counterbalanced by the tremendous handicap put upon industry by the larger charges for capital. In considering this direct tax on capital, you must consider the case of the individual, and not take the tax in the aggregate. There, again, there is an extraordinary tendency on the part of speakers on the Government side to take the average rate of taxation and not to consider the tax on the individual. The Prime Minister, in discussing the Budget Resolutions on Income Tax, said they could not really have any effect on capital, because the Income Tax averaged 9½d., and the new rate would only bring it out at 10¾d., and even with the Super-tax it would only come to 11½d. I think that argument is absolutely fallacious. I do not think that the Income-Tax-paying taxpayer is comforted by being told what the average is; he is only concerned with the cost to the individual. It. is perfectly certain he must be very hard hit indeed by the fact mat you are not only raising his Income Tax, but you are also raising the Death Duties. It is no argument to say that the Death Duties in themselves may be justifiable or that a larger Income Tax in itself may be justifiable. He has to consider the effect of both together. The hon. Member for Paddington disapproved Sir Henry Primrose's table. I have got that table corrected, and I now think it will meet with his approval. I suppose he will admit that it is quite just to look upon Death Duties as a form of Income Tax on the successor. I will remind the House that Sir Henry Primrose says that what the Estate Duty does is at recurrent intervals to cut a slice out of the capital value of realised property, and is therefore a tax upon persons who inherit, inasmuch as it diminishes their inheritance to the extent which the State takes to itself as a condition of the succeeding to property by inheritance. Sir Henry Primrose worked out a table showing the Death Duties on an Income Tax basis at that time, and he took £5 as an insuring payment.
I pointed out that he was quite wrong to take £5.
I said Sir Henry Primrose took £5. My calculation is taken on 2.25. My figures, I think, the hon. Gentleman will find are correct on that basis. At the present time on that basis you have got to make two deductions from the income of the successor. You first of all have got to cut down income in consideration of loss owing to the large slice taken out of capital, and then you have to get at a sinking fund—the annual burden of a sinking fund at 2.25 pounds for every £100 insured at the end of 30 years. I am taking the Super-tax class, because, after all, it is they who in the past have had the largest margin for investment, and much as hon. Members below the Gangway may dislike these large incomes they must remember that if they send them abroad they are about to diminish the margin for investment in this country. A man who inherits an estate at 4 per cent. bringing £5,000 a year will pay in Estate Duty on an annual basis 2s. 3d. in the £ on the scheme which I have worked out, and the largest estate, the millionaire, will pay 3s. 9d. in the £ on the same basis. In addition to that the Super-tax payer on £5,000 will pay 1s. 4½d. in the £ and the largest estate of a million 1s. 7½d., so that brings up the annual tax for Income and Estate Duties to 3s. 7½d. for a man with £5,000 a year and to 5s. 7½d. for the millionaire. This calculation neglects Succession Duties altogether, and Succession Duty may bring up the annual taxes on each estate by another 2s. 6d. in the £, because, for uncles or cousins, or strangers in blood, Succession Duty is 10 per cent., which means an extra 2s. 6d. in the pound. That brings up the possible annual burden of these taxes on large estates to nearly 8s. in the £, and I think there is no doubt whatever that no foreign system can be pointed to which in any way compares in its weight with the annual taxation which is going to be levied in direct form on large estates in this country. Radical finance has already enormously stimulated investments abroad. In 10 years, before the Radical Government came into power, the rise in the income derived from foreign securities other than Government coupons in foreign countries had only been six millions. That is in 10 years, but in the first year of Radical administration they went up by another six millions, and in the following year they again increased by six millions, so that in two years you have had double as great an increase of investment in foreign securities as in the whole previous ten years. Hon. Members below the Gangway cheer that statement, and I cannot understand their frame of mind in doing so. Surely whether they have Socialism or Individualism they must have capital for our British industries, and if all this capital is going abroad it must either mean stagnation in our British industries or else that our industries cannot get the capital which they want. If there is stagnation in our industries we ought to have a different system, and try to do something to revive it. I believe the reason this capital is going abroad is that people do not know what would happen if they invested at home. They have seen licences attacked, and the liquor trade and land attacked, possibly railways and other forms of enterprise may be attacked in the near future. For these reasons I think the owner of capital is very well advised in putting it abroad, and for that reason alone we are fully justified in voting against this Budget, owing to the effect which it must necessarily have in depreciating our national credit and in lowering the amount of capital available for our industries. We must vote against the Budget because it is only right that the people who vote for the expenditure should realise the burden of that expenditure, and whereas eventually this direct tax will come down on their shoulders it is right and proper that they shall realise it at the time they vote for the expenditure which necessitates increased taxation. For that reason I shall vote for this Amendment, because I believe the proposals of the Government will be as disastrous to every interest in the country in the long run as they will be unjust to the particular interests singled out in the first instance.
There is one not unimportant aspect of the novel and far-reaching proposals for the taxation of land values embodied in this Bill, noticed, I think, for the first time in this Debate in the weighty speech delivered yesterday by the right hon. Baronet the Member for Dean Forest, upon which I desire to say a few words. That taxation is to be levied for national and Imperial purposes—those purposes of Imperial defence and social reform for the promoting of which we must all, to whatever class of the community we may belong, be cheerfully prepared to make the necessary sacrifices. But if the object of this taxation be national in the fullest sense of the word, that description can hardly be applicable to the sources from which it is to be derived. The nation at large is not placed under contribution. The great bulk of the land of the country, that devoted to agriculture, will be practically and happily exempted from its operation. Its incidence will fall almost exclusively upon those urban and semi-urban districts, which taken together comprise so relatively small a proportion of the total area of the United Kingdom. It is upon the increment of land values which the enterprise, the industry, the money outlay of the populations of these districts have been mainly instrumental in creating that this taxation will be levied. Yet these urban communities are not to be allowed to reap the fruits of their own labour. Under this Bill the State will step in and gather the harvest for which it has neither sown nor watered. How can such appropriation be defended? Assuming taxation of the kind to be justifiable, surely its justification must be mainly grounded on the relief, the much-needed relief, it would be calculated to afford to the urban ratepayer unduly weighted as he is with the burden of an ever-increasing local taxation.
Where, in former times, rates of 3s. or 4s. in the £ were wont to suffice for the cost of local administration, to-day rates of 6s. or 8s., or 10s. are all too little to meet the requirements of that higher and ever rising standard of the civic life of the community which it must be increasingly the object of our legislators to promote and uphold. It has been in the hope and expectation of the relief to be derived from this source that the municipalities throughout the country have been so largely induced to take up the question of the taxation of land values. But the prospect of such relief will be brought no nearer by this Bill. On the contrary, the last state of the urban ratepayer is only too likely to be worse than the first. For whilst the existing burden of the rates will be in no way lightened for him, he will, in so far as he is the owner of undeveloped urban land, be subjected to the additional burden of the taxations imposed by this Bill. It appears to me that his title to priority of consideration in this matter cannot be gainsaid, and I trust that before the discussion on his Bill is brought to an end that the Chancellor of the Exchequer may be able to assure us that a share, and a substantial share, of the proceeds of this taxation will be earmarked for the relief and benefit of the local communities whose enterprise and industry have so largely contributed to that increment of land values of which under the Bill the National Exchequer is empowered to take toll.
That the community, the local community, should be regarded as entitled to a reasonable share of the increment of land value which it has done so much to create has always seemed to me a just and equitable proposition. But in regard to the further taxation proposed in the shape of an annual duty to be levied on the capital site value of undeveloped land I feel bound to recognise the weight of the objections urged by the hon. Member for Wiltshire and other speakers on the score of the hardship it would be only too likely in many cases to entail, and of the formidable, not to say well-nigh impossible, task it would impose upon existing owners of arriving at any other than a purely con- jectural estimate of the value of their land under the entirely new conditions brought about from the operation of this Bill. Take as a concrete case one of our manufacturing towns with a population of 20,000, with some 500 acres surrounding it available for building purposes. Not more than two to three acres would be annually required for increased house accommodation. At this rate of demand the owner would, at the end of 40 years have still 400 of the 500 acres left on his hands, and what valuation very appreciably higher than that on agricultural value could be warrantable in such circumstances? Everything indeed must depend upon the principle of valuation adopted. And we may be warranted, I trust, in interpreting the words used in reference to this point by the Chancellor of the Exchequer in his eloquent and powerful speech yesterday as affording the assurance that such principles of valuation will be laid down as may suffice to avert all risk of injurious result to the owner of the land affected, whether great or small. I will not at this late moment further trespass upon the indulgence of the House, but will conclude with the expression of this hope that this Finance Bill will leave the House in a shape calculated to win the general acceptance of the country and to promote in a high degree the well-being of the nation at large.
Perhaps I may be permitted briefly to recall to the House the situation in which we find ourselves. From top to bottom, according to the Leader of the Opposition, this Budget errs, and there was nothing in the speech of the right hon. Gentleman, nothing in the course of this Debate, and nothing in the state of this House this afternoon to justify a statement such as that. We have seen this Budget which we were told was to encounter the most extraordinary indignation, and was to be swept away almost before it had been properly presented, enter upon its long discussion in a mood of tolerance, and in a mood of fair and cool discussion, very much to the advantage, I think, of those who are the supporters of this Budget, though not wholly in accordance with the state of feeling of the more boisterous section of the community outside. The consequences of the Debate, so far as it has advanced, have no doubt revealed considerable and grave disagreements on points of detail, and on minor points of principle; but there are so great agreements between both sides and between all parties in this House, that there is no note of indignation, there is no dispute whatever about the justification for the expenditure which has been incurred, and there is no attempt in any part of the House to put forward any suitable alternative scheme. If ever the chance presented itself to those who have an alternative plan of taxation, now is the moment. ["No."] This is the occasion. We have to raise a great sum of money. We have to impose heavy burdens. We are distributing these burdens over the whole taxable area of the country. They are burdens which are falling with heavy weight on particular quarters. Now, if ever there was a proposal or plan for raising that money expeditiously and conveniently from the pockets of foreign nations, for producing a system of taxation which would not merely raise revenue, but which would produce actual and positive benefits to the country in which they are to be levied, now is the moment to bring it forward. What a shame at this juncture to keep this secret while it is offered freely on every platform and at every street corner. Why should these alternatives be withheld and kept secret from the House of Commons in such a situation? It is quite true that the alternatives of right hon. Gentlemen opposite offer many causes of satisfaction and many inducements to their supporters who are enthusiastic about them, but they know perfectly well that when it comes to the business of raising thirteen or fourteen millions of revenue, none of the taxes which they would have the courage to propose would produce what is required. In these circumstances there remain our proposals, which involve no taxation of necessaries, which carry with them no invidious penalisation of a rich few, which have produced not the slightest influence on the trade of the country, not any noticeable inroad upon credit, not a tremor in gilt-edged Stocks, Government Securities, or speculative Stocks, all of which are equally well sustained and have positively advanced. Is it surprising that the credit of the country should be high when, at a juncture when we are forced to raise great sums, and to embark on expenditure in many directions of a very serious and almost unprecedented character, while we see in every other country in Europe they are borrowing money for the ordinary annual expenditure, we are not merely paying our way by honest taxation from year to year, but we are paying off the debts of the past—your debts of the past. There are great differences between, and there ought to be differences, and I think that so far as party differences are concerned, this Budget raises all the great party differences. We certainly do not desire to dispute that.
The points of agreement are points of national agreement. There are great points of agreement, as this Debate and as the situation and as the temper of the House abundantly prove, between all the parties in the State in regard to this Budget. We are agreed, both sides, in making generous and sufficient provision for the services of the State. We are agreed that the provision should not merely include the funds necessary for national defence, but should extend also to the funds not less urgently needed for the purpose of social reconstruction and national needs. And we are agreed, both sides of the House, I say without hesitation after the speech of the Leader of the Opposition today, are agreed that the main burden and weight of that expenditure should be, upon the whole, fairly proportionate to the ability to pay. Those are great points of agreement. They will make for the unity of this country, and as a demonstration of the great financial strength of the British Empire.
I think that the Prime Minister at all events made an attempt to-day to define Free Trade. His definition was, I think, that you may tax anything imported as heavily as you like so long as you cannot produce it in this country. In other words, under Free Trade no import tax whatever is allowed which could possibly have the effect of causing a greater amount of any goods to be made or produced in this country, and by the making and production of which work and wages could be found for our numerous unemployed. We are not even allowed to be able to grow beet sugar and tobacco under Free Trade, because under this system it is necessary to tax them so heavily that our people cannot produce them. In short, under Free Trade you must not put on any import tax that can possibly be of any benefit to anybody either in Great Britain or Ireland. That is what the Prime Minister and his friends are pleased to call at the same time Free Trade and free food. Yet he told us in 1906 that the taxation of food, drink, and tobacco which he himself imposed came to £64,874,000. Under even this Budget our food, drink, and tobacco are not free from either import taxes or from Excise taxation. We pay more in import taxation on food, drink, and tobacco than any other country in the world, and you call it Free Trade and free food. How the Government can possibly have the cheek to go on trying to humbug the working classes of the country to believe that they have Free Trade, I really cannot make out. But the working classes are beginning to find them out. The Government are encouraging a system of subsidising the foreigner and penalising the home producer. You cannot get out of that. There is no doubt that under this Budget the taxation on agricultural land will be considerably increased, although land was very heavily taxed before. The effect of so-called Free Trade has been to drive out the yeoman farmer who farmed his own land and a large number of small holders and labourers. We had it from the hon. Baronet the Member for Northamptonshire (Sir Francis Channing) that the landowners and tenant farmers have been heavily oppressed for generations by both local and Imperial taxation. We who have anything to do with land know that very well, but we are glad to have it from such a prominent Liberal. I want to put this point to hon. Gentlemen who call themselves Free Traders: Land is the raw material of the food of the people. Why do you Free Traders tax this, our raw material, so heavily? Why are you going to tax it more heavily still? When you tax the land you must of necessity tax what it produces. Free Traders refuse to put an import duty of equal amount on wheat from abroad because they say that that gives an unfair advantage to British wheat producers. Yet, in reality, this would only be equal taxation; and this applies to all competing agricultural produce and all competing manufactured goods. We pay in local and Imperial taxation about £300,000,000 a year. This comes to about 12 per cent. on all we produce. I will state the case in this way. A man owning a theatre in London allowed all foreigners to attend it without paying anything, but all Britishers had to pay. As the expenses had to be paid, the Britishers had to pay extra in order to make up for the amount which the Foreigners did not pay, and this is the idiotic plan on which we conduct our national affairs, and which makes the whole civilised world laugh at us. And even the Labour party cannot see it.
, who was very indistinctly heard owing to continued cries of "Divide, divide," was understood to say: I think the question has often been asked since the introduction of the Budget, "How do you like this Budget?" I think that question is a difficult one to answer, because undoubtedly those affected by the Budget in their private interests naturally cannot be expected to express unbounded enthusiasm in regard to it. But if, on the contrary, I am asked do I approve of the Budget, I answer I am going to support it enthusiastically and unhesitatingly, because in the first place I regard it as sound financially, and, in the second place, in my opinion the Budget carries out the proper principle by putting the burden on the shoulders of those who are best able to bear it. I believe the people of this country will support the proposals of the Government against those of any Tariff Reform Government, and that the people of this country would prefer the taxes of Free Trade finance rather than be scourged with the scorpions of Tariff Reform.
Question put: "That the word 'now' stand part of the Question."
The House divided: Ayes, 366; Noes, 209.
Division No. 159.] AYES. [11.15 p.m Abraham, William (Rhondda) Balfour, Robert (Lanark) Benn, Sir J. Williams (Devonport) Acland, Francis Dyke Baring, Godfrey (Isle of Wight) Benn, W. (Tower Hamlets, St. Geo.) Adkins, W. Ryland D. Barker, Sir John Bennett, E. N. Agar-Robartes, Hon. T. C. R. Barlow, Sir John E. (Somerset) Berridge, T. H. D. Agnew, George William Barlow, Percy (Bedford) Bethell, Sir J. H. (Essex, Romford) Ainsworth, John Stirling Barnard, E. B. Bethell, T. R. (Essex, Maidon) Alden, Percy Barnes, G. N. Birrell, Rt. Hon. Augustine Allen, A. Acland (Christchurch) Barran, Rowland Hirst Black, Arthur W. Allen, Charles P. (Stroud) Barran, Sir John Nicholson Boulton, A. C. F. Armstrong, W. C. Heaton Beale, W. P. Bowerman, C. W. Ashton, Thomas Gair Beauchamp, E. Brace, William Asquith, Rt. Hon. Herbert Henry Beaumont, Hon. Hubert Bramsdon, T. A. Astbury, John Meir Beck, A. Cecil Branch, James Atherley-Jones, L. Bell, Richard Brigg, John Baker, Sir John (Portsmouth) Bellairs, Carlyon Bright, J. A. Brocklehurst, W. B. Haldane, Rt. Hon. Richard B. Marks, G. Croydon (Launceston) Brodle, H. C. Hall, Frederick Marnham, F. J. Brooke, Stopford Harcourt, Rt. Hon. L. (Rossendale) Massle, J. Brunner, J. F. L. (Lanes, Leigh) Harcourt, Robert V. (Montrose) Masterman, C. F. G. Brunner, Rt. Hon. Sir J. T. (Cheshire) Hardie, J. Keir (Merthyr Tydvil) Menzies, Walter Bryce, J. Annan Hardy, George A. (Suffolk) Micklem, Nathaniel Buckmaster, Stanley 0. Harmsworth, Cecil B. (Worcester) Middlebrook, William Burns, Rt. Hon. John Harmsworth, R. L. (Caithness-shire) Molteno, Percy Alport Burnyeat, W. J. D. Hart-Davies, T. Mond, A. Burt, Rt. Hon. Thomas Harvey, A. G. C. (Rochdale) Money, L. G. Chiozza Buxton, Rt. Hon. Sydney Charles Harvey, W. E. (Derbyshire, N.E.) Montagu, Hon. E S. Byles, William Pollard Harwood, George Montgomery, H. G. Cameron, Robert Haslam, James (Derbyshire) Morgan, G. Hay (Cornwall) Carr-Gomm, H. W. Haslam, Lewis (Monmouth) Morgan, J. Lloyd (Carmarthen) Causton, Rt. Hon. Richard Knight Haworth, Arthur A. Morrell, Philip Cawley, Sir Frederick Hazel, Dr. A. E. W. Morse, L. L. Chance, Frederick William Hedges, A. Paget Morton, Alpheus Cleophas Channing, Sir Francis Allston Helme, Norval Watson Murray, Capt. Hon. A. C. (Kincard.) Cheetham, John Frederick Hemmerde, Edward George Murray, James (Aberdeen, E.) Cherry, Rt. Hon. R. R. Henderson, Arthur Durham Myer, Horatio Churchill, Rt. Hon. Winston S. Henderson, J. McD. (A'deen, W.) Napier, T. B. Cleland, J. W. Henry, Charles S. Newnes, F. (Notts, Bassetlaw) Clough, William Herbert, Col. Sir Ivor (Mon., S.) Nicholls, George Clynes, J. R. Herbert, T. Arnold (Wycombe) Nicholson, Charles N. (Doncaster) Cobbold, Felix Thornley Higham, John Sharp Norman, Sir Henry Collins, Stephen (Lambeth) Hobart, Sir Robert Norton, Captain Cecil William Collins, Sir Wm. J. (St. Pancras, W.) Hobhouse, Charles E. H. Nussey, Thomas Willans Compton-Rickett, Sir J. Hodge, John Nuttall, Harry Cooper, G. J. Holden, E. Hopkinson O'Donnell, C. J. (Walworth) Corbett, C. H. (Sussex, E. Grinstead) Holland, Sir William Henry Parker, James (Halifax) Cornwall, Sir Edwin A. Holt, Richard Durning Partington, Oswald Cory, Sir Clifford John Hooper, A. G. Pearce, Robert (Staffs, Leek) Cotton, Sir H. J. S. Hope, John Deans (Fife, West) Pearce, William (Limehouse) Cox, Harold Hope, W. H. B. (Somerset, N.) Pearson, W. H. M. (Suffolk, Eye) Craig, Herbert J. (Tynemouth) Horniman, Emslie John Philipps, Owen C. (Pembroke) Crooks, William Horridge, Thomas Gardner Pickersgill, Edward Hare Crosfield, A. H. Howard, Hon. Geoffrey Pirie, Duncan V. Crossley, William J. Hudson, Walter Pointer, J. Curran, Peter Francis Hutton, Alfred Eddison Pollard, Dr. G. H. Dalziel, Sir James Henry Hyde, Clarendon G. Ponsonby, Arthur A. W. H. Davies, David (Montgomery Co.) Idris, T. H. W. Price, C. E. (Edinburgh, Central) Davies, Ellis William (Eifion) Illingworth, Percy H. Price, Sir Robert J. (Norfolk, E.) Davies, M. Vaughan-(Cardigan) Isaacs, Rufus Daniel Priestley, Arthur (Grantham) Davies, Timothy (Fulham) Jackson, R. S. Priestley, W. E. B. (Bradford, E.) Dewar, Arthur (Edinburgh, S.) Jardine, Sir J. Puller, Sir Robert Dickson-Poynder, Sir John P. Jenkins, J. Radford, G. H. Dilke, Rt. Hon. Sir Charles Johnson, W. (Nuneaton) Rainy, A. Rolland Dobson, Thomas W. Jones, Sir D. Brynmor (Swansea) Raphael, Herbert H. Duncan, C. (Barrow-in-Furness) Jones, Leif (Appleby) Rea, Russell (Gloucester) Duncan, J. Hastings (York, Otley) Jones, William (Carnarvonshire) Rea, Walter Russell (Scarborough) Dunn, A. Edward (Camborne) Kearley, Sir Hudson E. Rees, J. D. Dunne, Major E. Martin (Walsall) Kekewich, Sir George Rendall, Athelstan Edwards, A. Clement (Denbigh) Kelley, George D. Richards, Thomas (W. Monmouth) Edwards, Enoch (Hanley) King, Alfred John (Knutsford) Richards, T. F. (Wolverhampton, W.) Edwards, Sir Francis (Radnor) Lamb, Edmund G. (Leominster) Richardson, A. Erskine, David C. Lamb, Ernest H. (Rochester) Roberts, Charles H. (Lincoln) Essex, R. W. Lambert, George Roberts, G. H. (Norwich) Esslemont, George Birnie Lamont, Norman Roberts, Sir J. H. (Denbighs) Evans, Sir S. T. Layland-Barrett, Sir Francis Robertson, Sir G. Scott (Bradford) Everett, R. Lacey Leese, Sir Joseh F. (Accrington) Robertson, J. M. (Tyneside) Falconer, J. Lehmann, R. C. Robinson, S. Fenwick, Charles Lever, A. Levy (Essex, Harwich) Robson, Sir William Snowdon Ferens, T. R. Lever, W. H. (Cheshire, Wirral) Roch, Walter F. (Pembroke) Ferguson, R. C. Munro Levy, Sir Maurice Roe, Sir Thomas Fiennes, Hon. Eustace Lewis, John Herbert Rogers, F. E. Newman Findlay, Alexander Lloyd-George, Rt. Hon. David Rose, Charles Day Foster, Rt. Hon. Sir Walter Lough, Rt. Hon. Thomas Rowlands, J. Freeman-Thomas, Freeman Lupton, Arnold Runciman, Rt. Hon. Walter Fuller, John Michael F. Luttrell, Hugh Fownes Russell, Rt. Hon. T. W. Fullerton, Hugh Lyell, Charles Henry Rutherford, V. H. (Brentford) Gibb, James (Harrow) Lynch, H. B. Samuel, Rt. Hon. H. L. (Cleveland) Gill, A. H. Macdonald, J. R. (Leicester) Samuel, S. M. (Whitechapel) Gladstone, Rt. Hon. Herbert John Macdonald, J. M. (Falkirk Burghs) Scarisbrick, T. T. L. Glen-Coats, Sir T. (Renfrew, W.) Mackarness, Frederic C. Schwann, C. Duncan (Hyde) Glendinning, R. G. Maclean, Donald Schwann, Sir C. E. (Manchester) Glover, Thomas Macnamara, Dr. Thomas J. Scott, A. H. (Ashton-under-Lyne) Goddard, Sir Daniel Ford M'Callum, John M. Sears, J. E. Gooch, George Peabody (Bath) McKenna, Rt. Hon. Reginald Seaverns, J. H. Grant, Corrie M'Laren, Sir C. B. (Leicester) Seddon, J. Greenwood, G. (Peterborough) M'Laren, H. D. (Stafford, W.) Seely, Colonel Grey, Rt. Hon. Sir Edward M'Micking, Major G. Shackleton, David James Griffith, Ellis J. Mallet, Charles E. Shaw, Sir Charles E. (Stafford) Guest, Hon. Ivor Churchill Manfield, Harry (Northants) Sherwell, Arthur James Gulland, John W. Mansfield, H. Rendall (Lincoln) Shipman, Dr. John G. Silcock, Thomas Ball Thorne, William (West Ham) White, Sir Luke (York, E.R.) Simon, John Allsebrook Tillett, Louis John Whitehead, Rowland Smeaton, Donald Mackenzie Tomkinson, James Whitley, John Henry (Halifax) Snowden, P. Toulmin, George Wiles, Thomas Soames, Arthur Wellesley Trevelyan, Charles Philips Williams, A. Osmond (Merioneth) Soares, Ernest J. Ure, Rt. Hon. Alexander Williams, J. (Glamorgan) Stanger, H. Y. Verney, F. W. Williams, W. Llewelyn (Carmarthen) Stanley, Albert (Staffs, N.W.) Villiers, Ernest Amherst Williamson, A. Stanley, Hon. A. Lyulph (Cheshire) Vivian, Henry Wills, Arthur Walters Steadman, W. C. Walsh, Stephen Wilson, Hon. G. G. (Hull, W.) Stewart, Halley (Greenock) Walters, John Tudor Wilson, Henry J. (York, W.R.) Stewart-Smith, D. (Kendal) Walton, Joseph Wilson, J. H. (Middlesbrough) Strachey, Sir Edward Ward, John (Stoke-upon-Trent) Wilson, J. W. (Worcestershire, N.) Straus, B. S. (Mile End) Ward, W. Dudley (Southampton) Wilson, P. W. (S. St. Pancras) Summerbell, T. Wardle, George J. Wilson, W. T. (Westhoughton) Taylor, Austin (East Toxteth) Waring, Walter Winfrey, R. Taylor, John W. (Durham) Warner, Thomas Courtenay T. Wodehouse, Lord Taylor, Theodore C. (Ratcliffe) Wason, Rt. Hon. E. (Clackmannan) Wood, T. M'Kinnon Tennant, Sir Edward (Salisbury) Wason, John Cathcart (Orkney) Yoxall, James Henry Tennant, H. J. (Berwickshire) Waterlow, D. S. Thomas, Abel (Carmartehn, E.) Watt, Henry A Thomas, Sir A. (Glamorgan, E.) Wedgwood, Josiah C. TELLERS FOR THE AYES. —Mr.—Mr. Thomasson, Franklin Weir, James Galloway Joseph Pease and the Master at Thompson, J. W. H. (Somerset, E.) Whitbread, S. Howard Elibank. Thorne, G. R. (Wolverhampton) White, J. Dundas (Dumbartonshire)
NOES. Abraham, W. (Cork, N.E.) Fardell, Sir T. George Lonsdale, John Brownlee Ambrose, Robert Fell, Arthur Lowe, Sir Francis William Anson, Sir William Reynell Fetherstonhaugh, Godfrey Lyttelton, Rt. Hon. Alfred Anstruther-Gray, Major Ffrench, Peter MacCaw, Wm. J. MacGeagh Arkwright, John Stanhope Field, William MacNeill, John Gordon Swift Ashley, W. W. Flavin, Michael Joseph MacVeagh, Jeremiah (Down, S.) Balcarres, Lord Fletcher, J. S. MacVeigh, Charles (Donegal, E.) Baldwin, Stanley Forster, Henry William M'Arthur, Charles Balfour, Rt. Hon. A. J. (City, Lond.) Foster, P. S. M'Calmont, Col. James Banbury, Sir Frederick George Gardner, Ernest M'Kean, John Banner, John S. Harmood- Gibbs, G. A. (Bristol, West) M'Killop, W. Baring, Captain Hon. G. (Winchester) Gilnooly, James Magnus, Sir Philip Barrie, H. T. (Londonderry, N.) Ginnell, L Marks, H. H. (Kent) Barry, E. (Cork, S.) Gooch, Henry Cubitt (Peckham) Mason, James F. (Windsor) Beach, Hon. Michael Hugh Hicks Goulding, Edward Alfred Meagher, Michael Beckett, Hon. Gervase Gretton, John Meehan, Patrick A. (Queen's Co) Bignold, Sir Arthur Guinness, Hon. R. (Haggerston) Meysey-Thompson, E. C. Boland, John Guinness, W. E. (Bury St. Edmunds) Mildmay, Francis Bingham Bowles, G. Stewart Gwynn, Stephen Lucius Mooney, J. J. Bridgeman, W. Clive Haddock, George B. Moore, William Brotherton, Edward Allen Hamilton, Marquis of Morpeth, Viscount Bull, Sir William James Hardy, Laurence (Kent, Ashford) Morrison-Bell, Captain Burdett-Coutts, W. Harrington, Timothy Murnaghan, George Burke, E. Haviland Harris, Frederick Leverton Murphy, John (Kerry, East) Butcher, Samuel Henry Harrison-Broadley, H. B. Murphy, N. J. (Kilkenny, S.) Carille, E. Hildred Hay, Hon. Claude George Nannetti, Joseph P. Carson, Rt. Hon. Sir Edward H. Hayden, John Patrick Newdegate, F. A. Castlereagh, Viscount Hazleton, Richard Nicholson, Wm. G. (Petersfield) Cave, George Healy, Maurice (Cork) Nolan, Joseph Cecil, Evelyn (Aston Manor) Heaton, John Henniker Nugent, Sir Walter Richard Cecil, Lord R (Marylebone, E.) Helmsley, Viscount O'Brien, K. (Tipperary, Mid) Chamberlain, Rt. Hon. J. A. Worc'r.) Hermon-Hodge, Sir Robert O'Brien, Patrick (Kilkenny) Chaplin, Rt. Hon. Henry Hill, Sir Clement O'Connor James (Wicklow, W.) Clancy, John Joseph Hills, J. W. O'Connor, John (Kildare, N.) Clark, George Smith Hogan, Michael O'Connor, T. P. (Liverpool) Clive, Percy Archer Hope, James Fitzalan (Sheffield) Oddy, John James Clyde, J. A. Houston, Robert Paterson O'Donnell, T. (Kerry, W.) Coates, Major E. F. (Lewisham) Hunt, Rowland O'Kelly, Conor (Mayo, N.) Cochrane, Hon. Thomas H. A. E. Jordan, Jeremiah O'Kelly, James (Roscommon, N.) Craig, Captain James (Down, E.) Joynson-Hicks, William O'Malley, William Craik, Sir Henry Kavanagh, Walter M. O'Neill, Hon. Robert Torrens Crean, Eugene Kennedy, Vincent Paul O'Shaughnessy, P J. Cullinan, J. Kerry, Earl of O'Shee, James John Dalrymple, Viscount Keswick, William Parker, Sir Gilbert (Gravesend) Devlin, Joseph Kettle, Thomas Michael Parkes, Ebenezer Dickson, Rt. Hon. C. Scott- Kimber, Sir Henry Pease, Herbert Pike (Darlington) Dillon, John King, Sir Henry Seymour (Hull) Peel, Hon. W. R. W. Dixon-Hartland, Sir Fred, Dixon Lambton, Hon. Frederick Wm. Percy, Earl Donelan, Captain A. Lane-Fox, G. R Philips, John (Longford, S.) Doughty, Sir George Lardner, James Carrige Rushe Powell, Sir Francis Sharp Douglas, Rt. Hon. A. Akers- Law, Andrew Bonar (Dulwich) Power, Patrick Joseph Du Cros, Arthur Lee, Arthur H. (Hants, Fareham) Pretyman, E. G. Esmonde, Sir Thomas Lockwood, Rt. Hon. Lt.-Col. A. R. Randles, Sir John Scurrah Faber, George Denison (York) Long, Col. Charles W. (Evesham) Ratcliff, Major R. F. Faber, Capt. W. V. (Hants, W.) Long, Rt. Hon. Walter (Dublin, S.) Reddy, M. Redmond, John E. (Waterford) Sheffield, Sir Berkeley George D. Walker, Cot. W. H. (Lancashire) Redmond, William (Clare) Smith, Abel H. (Hertford, East) Walrond, Hon. Lionel Remnant, James Farquharson Smith, F. E. (Liverpool, Walton) Warde, Col. C. E. (Kent, Mid) Renton, Leslie Smith, Hon. W. F. D. (Strand) White, Patrick (Meath, North) Renwick, George Smyth, Thomas F. (Leitrim, S.) Williams, Col. R. (Dorset, W.) Roberts, S. (Sheffield, Ecclesall) Stanier, Beville Willoughby de Eresby, Lord Roche, Augustine (Cork) Stanley, Hon. Arthur (Ormskirk) Wilson, A. Stanley (York, E.R.) Roche, John (Galway, East) Starkey, John R. Winterton, Earl Ronaldshay, Earl of Staveley-Hill, Henry (Staffordshire) Wolff, Gustav Wilhelm Ropner, Col. Sir Robert Stone, Sir Benjamin Wortley, Rt Hon. C. B. Stuart. Rutherford, John (Lancashire) Talbot, Lord E. (Chichester) Wyndham, Rt. Hon. George Rutherford, W. W. (Liverpool) Talbot, Rt. Hon. J. G. (Oxford Univ.) Younger, George Salter, Arthur Clavell Thomson, W. Mitchell-(Lanark) Sandys, Col. Thomas Myles Thornton, Percy M. TELLERS FOR THE NOES. —Sir—Sir Sassoon, Sir Edward Albert Tuke, Sir John Batty A. Acland-Hood and Viscount Scott, Sir S. (Marylebone, W.) Waldron, Laurence Ambrose Valentia.
Main Question, "That the Bill be now read a second time," put, and agreed to.
Bill read a second time, and committed.
Adjourned at half-past Eleven o'clock.