TRADE AT HOME.

Taranaki Daily News, 3 October 1921, Page 5

TRADE AT HOME.

CONDITIONS IMPROVING, THE REVENUE RETURNS. BUTTER MORE HOPEFUL. , By Telegraph.—Press Assn.—Copyright. Received Oct. 2, 11.5 p.m. London, Oct. 1. Many branches of industry continue to improve, and though there is nothing like a general revival yet, trade has developed. More cheerful reports come fiom many industrial centres, with inquiries, more of which result in business than was the case recently. To-day’s discussions at Gairlocl are arousing very keen interest in financial and trade circles, which generally believe the Government will grant credit extensions 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 of increasing the volume of trade within the Empire. Though the revenue returns leave much to be desired, they are not regarded as entirely disappointing, in View of the severity of the trade depression during the half year. The brightest spot is the wonderful maintenance of income tax, which has already nearly realised the Chancellor’s expected increase for the year. In contrast to this is a great decline in the excess profits duty and results of the sales of Government assets. It is feared that unless we have a quick revival or trade and freer markets for the goods which the Government has to sell there will be a further serious shortage during the coming half year. NEW INCOME TAX SCHEME.

On the Stock Exchange there is dullness in “industrials,” following a series of unfavorable company reports and weakness in the oil section, in which some companies have been forced into liquidation. Most of the other markets remain steady, but the demand for corporation and colonial stocks has lessened, owing to new issues present and future. There is some disappointment that the bank rate has not been reduced, but probably 'it soon will be. The authorities are evidently waiting till they are sure that the rate can be maintained.

Mr. P. D. Leake, chartered accountant, a recognised authority on income tax matters, make an interesting proposal for a substitute for income tax, which he thinks must within a few years be abandoned as the main source of revenue, owing to its progressive failing yield. Mr. Leake claims his substitute would produce an equal yield without the income tax's worst vice, the inequality of its incidence. Of £350,000,000 produced yearly by income tax, Mr. Leake estimates that half a million payers, with incomes exceeding £5OO, should pay £425,000,000, while the remaining three million payers should only contribute £‘25,000,000. Ho proposes to tax 10 per cent, on gross production, less all strictly overhead charges. Estimating the country’s productive capacity at £4,400,000,000 a year, his tax would yield £440,000,000 and would be simpler to collect, since it would involve fewer individual returns. MEAT AND BUTTER. The position in the frozen meat trade shows no sign of improvement. There have been heavy arrivals of New Zealand sheep and lamb in London, where there is no storage available. Holders are trying to force sales, with the result that prices of lamb have fallen 3d per lb. in a month without increasing the sales. Consequently it appears probable that large quantities must be carried over until the new year. Some retailers are still endeavoring to maintain exorbitant prices’ for meat, but several large stores in London are offering some cuts of frozen meat at a little above pre-war prices, but the public’s spending power seems to have diminished, and the consumption, of meat is not sufficient to cope with the large stocks.

The butter position looks somewhat more hopeful. Retailers are getting rid or their high-priced stocks, which they bought when the Government rushed •prices up, and now that the late t reduction makes it possible to sell the best New Zealand at about 2s per lb., there is a probability that the consumptive demand will improve.—Aus.-N.Z. Cable Assn.