"Strike Budget"

COMMONWEALTH (British Commonwealth of Nations)

When Chancellor of the Exchequer Winston Churchill presented his last budget (TIME, May 3), Great Britain was on the verge of her greatest industrial travail of the present century, the vast and paralyzing general strike (TIME, May 10 et seq.) and the long drawn out nagging coal strike which began at the same time and dwindled to a close TIME, Nov. 29) without ever being formally "settled." What effect have these two stupendous, unprecedented strikes had on the exchequer? How deep must British taxpayers dig into their pockets this coming twelvemonth to pay the piper because 6,000,000 workers struck during the general strike and 750,000 miners remained out until the last bitter weeks of the coal strike? To answer these unpopular questions, Chancellor Churchill sat down four square on his facts last weak, presenting his budget to the Commons as the one logical answer to a problem stated by Fate.

The galleries were packed with peers; Montagu Norman, governor of the Bank of England and many another stalwart banker and businessman gave anxious heed to the chancellor's words. The Treasury, he announced, faced a deficit of $182,500,000 on last year's finances; $160,000,000 of this was due to the two strikes. The national expenditures for 1927, Chancellor Churchill estimated at $4,091,950,000; to meet them the country faces new taxes to yield an additional $175,000,000 to $200,000,000. Winebibbers, fag-puffers groaned; increased duties on imported wines, tobacco leaf and matches will be imposed. By a 33 1/3% duty on imported tires, by shortening excise credits allowed to brewers, by taking money from road fund reserves and transferring it to national reserves, the chancellor figures he can not only meet the deficit but set aside $325,000,000 for debt reduction. Chancellor Churchill spoke proudly: "Even in the past wretched year we were able to save and augment our capital and still retain our position as the greatest creditor nation and financial centre of the world." Citizens, burdened by ponderous taxes, would not be consoled.