FINANCE AND TRADE.

Hokitika Guardian, 5 October 1921, Page 1

FINANCE AND TRADE.

CONDITIONS IN BRITAIN. lUSTUALIaM and ji.z. CADI.E ASSOCIATION. LONDON. Oct ]. Mitny lintnchcs <>f industry unitiriuo to iinprove. and though tlim- is iiotliino lila- a gcnentl revival vet, tratit- lias ilevclopt-d. More rlu-orful ri'|iorts I'oiiu* .faun ninny industrial centres, with more etupiiries, of which iin in- result in Inisiitcss than was tincitst- recently. To-dny’s discussions at (h'irloch are arousino the keenest interest in financial and trade circles, which generally believe the Government v:ll grant credit extension to industry on a very large scale. It. is understood the export credits scheme will receive much attention, as the Cabinet Committee recognises the desirability ot increasing the volume of trade within the Kinpire. Though the revenue letiiriis leave much to Is- desired, they arc not regarded as entirely disapixiintjug in view of the severity of the trade depression during the half-year. The brightest spot is the wonderful maintenance of the income tax. which lias already nearly realised tlu*. Chauceilor’s expected increase for the year. In contrast to this is the great decline in the excess profits duty and the results t.i the sale of Government assets, ft is feared that unless we have a iptick revival of trad,' and a freer market for goods which the Government has to sell, there will be a further serious shortage during the coming half-tear.

On the Stock Exchange there is a dullness in industrials, following a. scries of unfavourable company reports and a weak ness in the oil section, in which some companies have been forced into liipiitlation. Most of the other markets remain steady, but the demand for i-orfMiration and colonial stocks has lessened, owing to new issues present and future. There is some disappointment that the bank-rate lias not been reduced, hut probably it soon will lie. The authorities are evidently waiting till they arc sure that the rate can in- maintained.

Mi- I*. !). I.cake. cluirlt-ml accountant. who is a recognised authority on income tax matters, makes an interesting proposal for a. substitute foi the income tax. which lie thinks must within a few years he abandoned as a main source of rev.-nue. owing to its progressive failing yield. Mr Leake claims that the mibstituto would produce all eipml yield without tin- worst vice ol' income taxes the inequality of its incidence. Of the .V.O millions produced yearly hy the income tax, Mr I.cake estimates that half a million pavers with incomes exceeding £o(M should pay T2t> millions, while tlu- remaining three million payers should only contribute 25 millions, lie proposes a tax of 10 per cent, on gross production, less all strictly overhead » barges. '’Estimating the conin'

productive capacity at -IKK) millions per year, his tax would he 110 millions, and simpler to collect, since it. would involve fewer individual returns.

The position in the frozen meat trade shows no signs of improvement. There have been heavy arrivals ol New Zealand sheep n.nd lamb in London, where there is no source of storage available. Holders are trying to force sales with a result that prices of lamb have fallen ltd per 111, in a. month without increasing sales; consentient ly it appears probable that* large puantities must lie carried over until the now year. Some retailers are still endeavouring to maintain the exorbitant prices of meal, hut several large stores in London are offering some cuts of frozen meat at* little above prewar prices, hut the public's spending power seems to have diminished and tin* consumption of meat is not sufficient to rope with the large stockn. The butter position looks somewhat more hopeful. Itctailers are getting rid of tlio high-priced stocks which they bought when the (ioveriimeitl rushed prices up. and now that the latest reduction makes it possible to soil best New Zealand at about. 2s per !l>. tilers* is n probability that, tin* consumptive demand will improve.