"Coal Budget"

Baldwin. Sorely harassed, Premier Stanley Baldwin spent virtually the whole of last week in attempting to mediate between the coal miners and owners of Britain. (TIME, Apr. 26 et ante.)

Since the subsidy extended to the coal industry last July has already cost the British taxpayer -L-100,000,000 (nearly half a billion dollars), there is the most intense opposition to its continuance* by all unsubsidized taxpayers. At the same time, the miners insisted last week, that they would walk out May, 1, unless their wage demands were met; and the owners vowed they would lock the miners out rather than pay the wage demanded, unless the government continues its subsidy.

Churchill. The approach of the crisis synchronized with the great annual politico-business event of the British Government--the presentation of the budget to the House of Commons by the Chancellor of the Exchequer. Winston Churchill stepped up manfully to meet his great occasion.

Totals. Mr. Churchill estimated that the government would have to spend some -L-812,000,000. He calculated on raising revenues that would yield a surplus of about -L-4,000,000. But the coal subsidy if figured in with the expenditures instantly turns this surplus into a deficit of -L-14,000,000.

Special Taxes. Because of this fact, Mr. Churchill declared that he was unable to take off any of the special taxes imposed last year, such as the tax on beer. Instead he found it necessary to propose other taxes, chiefly a tax of 5% on all legal betting (at the race courses, etc.).

France. Mr. Churchill sprang a surprise by announcing that France would make during the year a payment of -L-4,000,000, perhaps more, on her debt to Great Britain.

Encouraging Signs. The Chancellor called the attention of the Commons to the fact that trade was improving, that the nation was richer than a year ago, and that in six years the British floating debt had been cut in half, reduced by -L-700,000,000.

Discouraging Facts. He also called attention to the fact that consumption of spirits had decreased, and consequently the Government's revenues from that source had decreased.

Churchilliana. ". . . we stand on a basis of reality. We may not be soaring in the clouds but there is solid ground under our feet. I am not looking for trouble [the betting tax]--I am looking for revenue." Having presented his well considered plan, Mr. Churchill sat back, leaving it to the mercy of the roaring winds of debate.

* The date set for its expiration is May 1, 1926.