AMERICA'S ATLANTIC PATROLS NOW OPERATE

Auckland Star, Volume LXXII, Issue 103, 3 May 1941, Page 9

AMERICA'S ATLANTIC PATROLS NOW OPERATE

TANKERS FOR BRITAIN Large Transport Planes To Be Sent At Once. I'nitffl Association.— Pnpyrishf. Rec. 2 p.m. WASHINGTON", May 2. The delivery of 25 of the 50 oil tankers promised to Britain will be made immediately. The tankers total about 500,000 tons of the 2,000,000 tons shipping pool. Meanwhile the Administration has arranged to get from private industrial firms and airlines 20 to 30 large transport planes within 48 hours, and more later on, probably 50 to 75 in all. The planes will be sent to Britain without waiting to be converted to military use. It is understood that the United States Navy's extended Atlantic patrol is getting into full operation. The chairman of the Federal Reserve Hoard. Mr. Marriner Eccles. said to-day that financing defence rendered it desirable that the public should cut down purchases of motor cars, houses and other consumer goods. This would not only help the cost of defence, but would act as a 1 brake on inflationary tendencies.

Mr. Eccles strongly urged a method of controlling the volume of forward buying on instalment credits, which tended to have an unstabilising influence. He said that he was opposed to a general sales tax. because it fell most heavily on those least able to pay. He supported a selective sales tax. which would reduce the demands for luxury goods.

He urged that the first source of defence revenue be a corporation tax and an excess profits tax, because corporations were the greatest beneficiaries from defence expenditures. Heavy corporate income and excess profits taxation, he said, would reduce the amount required from personal incomes.

Nevertheless, he said, normal and surtax rates of personal income could, and must, be substantially increased, and exemptions should be reduced, thus spreading the basis and nusiber of payers.