A BACKGROUND TO THE NEWS

Dominion, Volume 28, Issue 88, 8 January 1935, Page 7

A BACKGROUND TO THE NEWS

British Banks It is reported that two of the “big five” United Kingdom banks, Barclays and Lloyds, both maintain dividends and show substantial increases in the year’s profits. For some years previous to the Great War the process of amalgamation of banks had been going on steadily. The advent of the war hastened it considerably, and in 1918 the joint-stock banks known as the Big Five emerged. They are Barclays Bank, Lloyds Bank, Midland Bank, National Provincial Bank, and Westminster Bank. A Treasury Committee appointed in 1918 decided that no further amalgamations without the approval of the Government would be allowed, and that the Treasury and Board of Trade must give their consent before more absorptions could take place. The Bank of England is the keeper of England’s gold reserve; and it is the banker’s bank. It is, , first of all, the Government bank, receiving all revenue payments, and paying the dividends to holders of Government stock. It is the agent of the Government in the financing of treasury and exchequer bills, and in other ways is the right hand of the Government in the financial side of its administration. It is the only bank whose notes are legal tender, that is, mtrst be taken in payment of a debt. It is, for practical purposes, now the only note issuing bank in • England. The Bank of England, or, to give it its proper title, the Governor and the Company of the Bank of England, is directed by a governor, a deputygovernor, and 24 directors, forming the court, and no member must be connected with other banks. Excise Duty.

Whisky manufacturers and barley growers ar e stated to be renewing endeayours to obtain some remission of the heavy excise duty on spirits. The excise is the name given collectively to those duties which, in the fiscal system of the United Kingdom, are levied upon commodities produced within the kingdom itself, as distinguished from customs duties which are levied at the ports upon commodities imported from abroad. All duties in England, whether on imports or on commodities produced within the country itself, were once described as excise duties. Excise duties were first imposed in England in 1643 by the Long Parliament in order to raise funds for the war against King Charles I. The principal articles first subjected to the duty were ale and beer, cider, to which was soon afterwards added a long list of articles of food and clothing. The tendency of modern legislation has been to throw the largest burden of excise taxation on alcoholic drinks, and to exempt, as far as possible, other articles. Whisky Industry.

The name “whisky” is believed to be a contraction of the Celtic “Ulsgebeatha” (water of life) or “Usquebaugh,” a later form. The earliest mention of whisky in Scottish records dates from the fifteenth century. During the Civil War of Charles I’s reign, taxes were exacted from retailers of spirits, while Cromwell imposed an excise duty of 2d. per ghllon. poring the eighteenth century the Scotch whisky industry developed rapidly, large quantities of spirits being sent to England. Meantime, the system of taxation by means of a charge per 100 gallons of “wash,” based on the quantity of spirit they were presumed to yield, which had been introduced from England shortly after the union, had been gradually tightened up until the Scottish distillers were in danger of absolute ruin. In 1826 the rate of duty for all parts of Scotland was fixed fit 2/10 pOr proof gallon. At the outbreak of war the. duty was 14/9 per proof gallon. In 1918 it was increased by 15/3 to 30/-, then in 1919 by 20/- to 50/-, and finally in 1920 by 22/6 to 72/6 per proof gallon (or 8/5 per bottle). No whisky can be cleared as duty-paid for consumption until it has attained a minimum age of three years. In practice, proprietary whiskies are very much older than that when they go into consumption. Proof spirit is the standard by which all mixtures of alcohol and water are judged, and contains 57.27 per cent by volume and 49.50 per cent, by weight of alcohol. The specific gravity of proof spirit is .9186. The Sahara.

It is understood that France is ceding Italy an area as large as the North Island in the Sahara. Sahara is the Europeanised form of the Arab word Sahira, meaning desert. France holds about three-fifths of it, and the remainder is Spanish, Italian and British. But whatever flag it flies the Sahara is, speaking generally, one hard and inhospitable land, almost incredibly dreary, despite its being sun-drenched during most of the year. The greater portion is less than 1000 feet above the sea. The whole desert area is estimated at 3,500,000 square miles. There is proof that a large part of the desert was once covered by the sea. Contrary to beliefs the Sahara to-day shows far more rock than sand. In the centre of the desert region is a high mountainous country called the Ahaggar or Hoggar plateau, whose area equals that of the Alps, the loftiest summit being 8000 feet. The Libyan desert is the most terrible pari of the Sahara; it is full of dunes and soft shifting sands. It is five times the size of New Zealand and is sterile. Empire Policy.

It is reported that Ministers in England are busy drafting fundamental points of a surprise Empire policy, in preparation for an election with the object of securing a continuance of the National Government. The scheme as outlined in yesterday’s “Dominion” follows somewhat the ideas of Lord Beaverbrook and his Empire Free Trade policy. He laid it down that the movement should proceed independent of party polities; it should give allegiance to no party, but pursue its own object, without caring, whether its crusade suited the convenience of parties or not; it should take advantage of any offer toward forwarding the cause which any party would give it. Its motto would be, “Insofar as you give me Empire, I will give you support.” British Trade.

“The Times” in a review says the British Export Trade has made a slow but continuous expansion for 18 months. The following figures(ooo,ooo omitted) showing Britain’s export trade with foreign countries (given first), and British possessions, give some indication of how great is the ground lost since 1029 and has yet to be recovered. 1929, £405: £324; 1930, £322; £248; 1931, £220: £171; 1932, £200; £166; 1933, £204.; £164.