Budget Critics

Hawke's Bay Herald-Tribune, Issue 81, 22 April 1937, Page 5

Budget Critics

Telerrnph— Pres* Awm.-

"WHY HOLD SHARES AT ALL?" Profit Mostly Taken By New Tax SHARES FALLBUTREVIVE

(Bj

-Copyright.)

(Received 22, 11.55 a.m.) LONDON, April 21. Not only City business men bttt a large nttmber of Conservative members of the House of Commons criticise the injustice of the new tax. Fears are expressed that it will retard the establishment of new enterprise in the distressed areas. The Financial News estimates that the tax will take about 15 per cent. of the increased profits of indu&try and adda that, as 25 per cent. already goes in income tax, it is a wonder that people trouble to hold shares at all. • " One • of the shrewdest Labour members told The Times Parliamentary correspondent that the tax would not be reaaoved from the statate book in his lifetime. The Daily Herald, in a full-page leader on the Budget, praises Mr Chamberlain 's courage but considers that if ho had earried his prihciples to their logical conclusion he would have prohibited any direet profits from armaments. Mr. C. B. Attlee, leiider of the Labour Party, said, "The Budget. marks the complete failure of the Governrnenfc policy. We ehall oppose it beeausf it is an expresaion of the foreign policy which is helping to fuin the world.*' Sir Archibald Sinclair, Liberal leader, said: "The Chancellor of the Exchequer explained why Britain is unable to balance the Budget this year but did not attempt to explain how il would be in a better position flve years lence." The Times, in an |ditorial, says: "Mr. Chamberlain avoided all exjkremes, apportioning the cost between revenue and loan money in a manner least likely to ^encourage a boom or itart a downward movement." The Daily Telegraph says: "The new tax is an endeavour to take back at least a portion of the extra gains which may arise from increased expenditure on armaments but will apply to all forms of increased business profits." The Manchester Guardian Bays: "Mr Chamberlain deserves high credit for anticipating a public demand for an oxcess profits duty and allaying poslible unrest due to tbe spectacle of high profits made from the country's need," The disposition of the market this ttorning was to take a gloomy view of the Budget. „ Industrials opened weak; armament and shipping shares especially were depressed. The markets took better heart in tbe afterndon as It was realised not only that industrials are considerably under the year's high levels but that the new tax will leavc eompanies a substantial proportion of the increased profits. Iron and steel shares remain depressed, but shipping shares are sligbtly better. Eubber shaTes are stronger. Commodity shares are active and •trong.