TRADE DEPRESSION POSSIBLE, BUT NOT SERIOUS.

Hawera & Normanby Star, Volume XLVI, Issue XLVI, 6 May 1914, Page 5

TRADE DEPRESSION POSSIBLE, BUT NOT SERIOUS.

LONDON, May 5. The Chancellor said that after consulting with the best authorities, he was of opinion that* though there would be slackness in certain trades, others would be busier than ever, and on the whole he expected no serious set-back to trade in 1914., which was likely to be an average one. It was not safe to anticipate a continuation of the boom of 1913, but the depression would be shallow, and would not last long.

Dealing with taxation, Mr Lloyd George pointed out that direct taxation was now 60 per cent, and indirect 40 per cent. When the Government came into office each was 50 per cent. Death duties on estates of over £60,000 would be increased until the maximum of 20 per cent upon estates of a million was reached^ instead of the preseent 15 per cent, realising three millions for "the full year.

The increases in the income and supei--tax would make a man with £100,000 a year pay 2s 6d in the £, compared with the present Is Bd. A statutory clc- "ration, of total income would be enforced under stringent penalties, in order to prevent investments abroad, where income could be accumulated as capital. Mr Chamberlain said he would not attempt to debate the complicated changes, though he deprecated the raid on the sinking fund.

The House of Comirons agreed to the income tax resolutions and adjourned. Some surprise is expressed in the lobby that during a period of embittered, party oontroversv the House of Commons should be asked to consider a complete re-casting of local government finance.

Some of the Unionists describe it as a dissolution Budget, owing to the heavy calls upon the rich. The Liberals generally approve the Budget.