The latter part of Tuesday's sitting in the House of
Commons was devoted to the discussion of the Fiscal Resolution introduced by Mr. Mond, which declared that "any attempt to broaden the basis of taxation by placing small import-duties on a large number of articles" would be a violation of the principles of sound finance and would be "wasteful and uneconomical" and "harmful to industry and commerce." After the Tariff Reform view had been put by Mr. Hills and that of the Free-traders by Mr. Cox, Mr. Balfour insisted that to put small taxes on a large number of articles was not necessarily an absurd policy. Free- traders who averred it was had only manifested their insular arrogance. Did not Egypt and India get their revenues out of small duties upon imports ? 'He regarded the broadening of the basis of our taxation as inevitable and not far distant. The huge dimensions of our liabilities for the fighting Services, the Civil Service, and the old-age pensions policy of the Government would compel them to adopt a wider system, whether they wished it or not. It would be madness to look for increased revenue from the Income-tax or the Death. duties. The only course open was that of increasing the number of Custom-duties. He should doubly welcome that course if it should afford us the opportunity of making arrangements with our Colonies for strengthening the bonds of Empire. Again, this policy which be supported would unquestionably increase the manufacturing powers of this country and its market beyond the seas. Ultimately Mr. Mond's Resolution was carried by a majority of 189 (280 to 91).
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