TAXING WAR WEALTH

Dominion, Volume 13, Issue 149, 19 March 1920, Page 7

TAXING WAR WEALTH

BANKERS' OPPOSITION TO CAPITAL LEVY '

DANGER OF FINANCIAL PANIC j

Bv Telegraph-Press Association-Copyright

London, March 16. \ The opposition of bankers to a capital I levy on war wealth was voiced before a i House of Commons Committee on Fell- ] ruary 21. Mr. It. M. Martin, chairman . i of the British Bankers' Association, said , he considered a tax on war profits was. | undoubtedly just, but a tax on war i wealth as proposed was a direct attack < upon thrift. A man who, during the ! war, stinted himself to invest in the I war loan would now see his savings raid- j cd if they exceeded ,£2OOO, while a pro- ; fiteer, who scattered liis newly-made i riches, went free.' Dealing with the effect on trade, Mr. Martin, said the de- ! mands of tho. banks for loans for legiti- 'j mate purposes were increasing. A trader ; who wished to do his pre-war trade re- ! quired at least three times as much eapi- | tal. It was a complete fnllacy to think j that because bankers' deposits had risen j there was at hand a surplus fund which could be tapped by taxation. ! Mr, Pain, joint manager of Lloyd's i Bank, denied that there was any war ! wealth. He said the proposal before the j committeo was the greatest blow to credit ! the country had ever had. The tax ! would follow the grc-nt financial efforts I made by the people during the war, and i at a less favourable time. He gave it ; as the deliberate opinionrof himself and of prominent financiers and hankers, that I if the suggested tax was imposed the j country would be, in serious danger of a j financial panic such as the present gen- j erntion had never known.—Aus.-N.Z. j Cable Assn. \ j