LATE NEWS

Evening Post, Volume XCI, Issue 127, 30 May 1916, Page 8

LATE NEWS

FINANCING THE WAR

TAX ON AMERICAN SECURITIES

A SPUE TO HOLDERS.

(By Telegraph.—Press Association.—Copyright.)

(Received May 30, 1 p.m.)

. LONDON, 29th May. In the House of Commons, on the discussion on the Consolidated Fund Bill, members criticised financing the war on short-time bills, and urged a permanent loan.

Sir F. 6. Banbury declared that the feeling in tho City was that the limit of safety as regards the issue of Treasury Bills had been almost reached.

The Chancellor of the Exchequer (Mr. R. M'Kenna) said the Government policy could well be defended, but it( was impossible under the rules of debate.

The Bill was reported without amend' menfc.

Mr. M'Kenna, in moving the additional income-tax of 2s on American securities, said the proposal was novel, but it was necessary to provide against the adverse balance of trade with America, and the export of gold. Loans raised in America had proved insufficient, but the purchase of American securities operated as a complete success, enabling us to pay oxir way and preserve a, substantial balance in the United States for payment of our liabilities. British owners generally had come forward patriotically, but the flow during the recent week had dwindled to a trickle. Some holders needed a spur to remind them' of their duty to the country. The flow had already greatly increased, but if two shillings proved an insufficient spur, he would ask the House to raise the tax even to twenty shillings. Sir Edward Carson: "Why not act now?" Mr. M'Kenna said there were great difficulties. Sir F. G. Banbury declared that the proposal was grossly unfair. The Government should not single out particular investments. We were returning to the days of Isaac of York. It was a bad precedent to use the income tax as a penal instrument. Mr. William Rutherford said the proposal was sheer robbery, dishonest, and mean. Let the Government introduce a Bill employing simple compulsion.