BUDGET PROSPECTS.
I suggest that there are two reasons for believing that a balanced Budget, with the prospect of some relief in direct taxation, may have its influence even upon the industrial situation and the unemployment problem. In the first place, as regards unemployment it must be remembered that the problem is a world problem, for it is as acute, if not more acute, in the United States as in this country. There is, however, this important difference, namely, that while Ainerica has apparently trusted to expanded credit to remedy the situation and is still faced- with a huge deficit. in the national balance. sheet, we have effected many necessary economies and for that reason are better prepared, first, to give tem. porary relief to the unemployed, and later to deal with the conditions resulting from better trade. For it must not be forgotten. that as soon as there is a turn here in the tide of industrial depression, the effect will be of a cumulative or compound character. The Treasury will immediately benefit from reduced outlays in the shape of unemployment benefits, while it should gain in revenue by reason of the trade activity itself and the greater spending power of the community. Not only so, but if in the next Budget Mr. Chamberlain should be able to announce some reduction in the Income Tax; I believe that the effect upon the . industrial outlook might be very great. It is not merely that spending power on the part of the community would be increased, but the present heavy tax is. not only a strain upon industry but it constitutes -a cheek to .enterprise:
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