In the debates on the Budget on Monday and Tuesday,
what Mr. Chamberlain described as "that hardy perennial," the question of the merits of "those charming sisters, direct and indirect taxation," was, as usual, raised. This year, however, there was a new point to be made. Wages are now by statute governed by the cost of living, and taxes on necessaries such as tea therefore directly increase the wages bill. We trust that this useful little object-lesson in elementary economics will be digested. A Government concession has been made in the reduction of the duty on champagne, chiefly in the interests of the French growers, but partly on the plea that the tax originally proposed was sufficient to kill the trade. Mr. Chamberlain moved an amend- ment that the duty should be reduced from fifty per cent. to thirty-three and a third per cent. The duty on cigars is to be reconsidered.
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