DEATH OF PROFITS TAX

Evening Post, Volume CXXIII, Issue 130, 3 June 1937, Page 9

DEATH OF PROFITS TAX

MR. CHAMBERLAIN PRAISED

NEW PROPOSAL

United Press Association.—By Electric Tele^ graph.—Copyright. LONDON, June 1.

Tremendous cheers in the House of Commons greeted, the Prime Minister's announcement of the withdrawal of the.proposed tax on the growth of profits, expressing the relief not only of members of the House of Commons but,also of industrial leaders throughout Britain.

The Conservative, and Radical Press combine in editorial approval of the step. The "Daily Telegraph1' says: "Mr. Chamberlain inaugurated, his term of office as Prime Minister with an act of high courage." The City writer of the Australian Associated Press agency learns, that Treasury experts have begun consultations with , representatives of trade and industry, indicating that the Government is not repeating its error of neglecting to consider business advice. The new tax is expected to resemble the old corporation profits jtax. The City hopes that, some means will be found of roping in debenture preference : shareholders, as it is considered unfair that the whole burden of rearmament should be placed on one class of investors.

EARLY ANNOUNCEMENT OP ALTERNATIVE,

Cabinet will discuss ' the Treasury reports this afternoon, and' aims to announce the new ■ tax ■as quickly as possible. It is not expected to cause any loss of Parliamentary time or further business uncertainty. V

T|he gold scare is- now the only factor'holding back the markets. Despite the United States Treasury's flat denial that it is reducing the gold price, hoarders are acutely nervous, and the market is flooded by sellers

daily. : -■ ' ; Dr. Trip; president of the Netherlands Bank, recommends international regulation of gold production^ He considers restriction' of output is preferable to reducing the price and should be' accepted by producers in their own interests. '■ , ■■■"...■