There was some desultory discussion of the Budget Resole. tions
in the Committee of Ways and Means on Tuesday, it being decided that no general debate could take place before the second reading of the Finance Bill. The Chancellor of the Exchequer contended that the limit of remunerative taxation had been reached in regard to tobacco—a view which is hardly borne out by the enormous sale of cigarettes at five a penny—and in the interests of revenue deprecated the plan of imposing ad valorem. duties on cigars and tobacco. Replying to criticisms on the proposal that the permanent annual charge for the National Debt should be £27,000,000, and complaints that inadequate provision was being made for the increase of the new Sinking Fund, Mr. Ritchie defined the principles by which he was guided. These were that the Sinking Fund ought to bear a fair proportion to the Debt, and that an undue burden should not be laid on the tax- payers in order to increase that Fund. His predecessor left the fixed Debt charge at £23,000,000, and there was also a charge of £4,500,000 available for the purposes of the Debt, which would bring the total up to £27,500,000. But Sir Michael Hicks Beach intended, when the interest on Consols had been reduced to 2i per cent., that the million and a quarter thus saved should go to the taxpayers, and on this ground Mr. Ritchie held himself justified in fixing the figure at £27,000,000. With that decision we agree.
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