MINING ROYALTIES.
[To ens &Irma or um " Sreorcroe.".1
SIR—The idea is gaining ground that the Government proposal to nationalize mining royalties will help to ease the way of the overburdened taxpayer, in that coal will ultimately be reduced in price, the profits at present accruing to the private royalty owners being eliminated. Upon consideration it will be seen that that idea is incorrect. In the first place, the present royalty owners will have to be bought out at enormous cost, the money being provided out of the country's already. very depleted coffers. Secondly, the royalties will continue to be paid to the Government without the State benefiting by that addi- tional taxation on royalties which has hitherto been provided by the private royalty owner. Thirdly, it will be absolutely necessary to set up yet another Government Department for the collection of the royalties. There is a still more important consideration. We all know how the original Customs House Duty on tobacco was, in the first place, a very small affair; we also know to what proportions it has since reached. Could not the same thing happen in the case of coal? The work of the Chancellor of the Exchequer will be exceedingly difficult far many years to come, and there is no doubt that he will fre- quently feel sorely tempted to avail himself of the means ready to his hand, of increasing the revenue by raising the royalty on coal. I submit that a solution of the whole problem in regard to mining royalties is to be found in the Bill framed by Lord
Gainford.—I am, Sir, &c., T. Iftenerx. 93 Haverhill Road, Streatham, S.W.
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