If the revenue were to be stationary this would, of
course, mean the necessity of raising some extra five millions a year by taxation. The Chancellor, however, looks for what he calls "a sunny year." Our trade has gone up by leaps and bounds, and there is still no prospect of reaction. There was a spirit of enterprise abroad, he declared, which boded well for all industries. He expected further increases under the chief items of revenue, which would, he anticipated, bring the revenue to £337,000 above the expenditure. This secures him the margin necessary in every Budget. Looking forward to the financial years after this, when a great deal more money will be wanted for the insurance scheme, he felt confident that the revenue would be sufficient if Members would co-operate and not make any attempt to enlarge the expenditure under that scheme. We sincerely hope that the Chancellor may not be too optimistic, but we are bound to point out that be is very sanguine in expecting that the trade boom will last undiminished for another three years. If it goes the way of other booms it is far more likely that two years hence we shall be shaking our heads over the terrible signs of inelasticity in the revenue, and the Chan. cellor, whoever he may be, will be calling upon us to endure the sacrifice of new and heavy taxation like men.
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