BRITAIN'S FINANCES

Dominion, Volume 13, Issue 21, 27 October 1919, Page 5

BRITAIN'S FINANCES

DISCUSSED BY THE HOUSE OF LORDS

TAXATION OF WAR PROFITS

FAVOURED

By Teleeraph—Press Assoclation-Gopyrißht (Rec. October 2G, 11.5 p.m.) London, October 21. Tho House of Lords discussed the financial situation. Lord Buckmaster favoured a large increase in tho income tax instead of a capital levy or a levy on war profits, though all three were possible remedies, especially a tax on war profits, which would thus restore to the community money which shutild never have- been lost. Viscount .Miiucr said (here was nothing in the position to justify tho talk of bankruptcy. The British financial situation was less serious than in any country, except perhaps the United States and Japan. The panic . which certain newspapers were fomenting was due to an unjustifiable belief that tho Government did not realise the gravity of tho situation. It would be unwise to adopt ill-considered measures. 'The wolf is not at the door. A capital levy might do irreparable mischief to the recovery of trade'. We certainly ought not to take more income tax from incomes under .515(10. People with small fixed incomes .suffered most as the result of the war. We ought to stop the waste involved in the unscientific use of rawmaterials and should not bewail the rn. dnced coal output when ive might double the value by a better use of it." The country ought to develop electricity, wireless communication and new forms of transport. There was also a mino of wealth in some of the undeveloped colonies and proteocorates. There was a danger of getting into the habit of regarding ourselves as a poor country.' Viscount Milner added that lie agreed that it was only fair that people who became enormously rich as the result of the war should make a spe:ial contribution to relieve the community's burden. He could not say whether the execution of that principle would produce such confusion as to threaten us and so many individual acts of injustice as to compel its abandonment, but the project deserved careful study and consideration. Tho debate was adjourned.—Aus.-N.Z. Cable Assn.