BUSINESS BRISK

Manawatu Standard, Volume LVII, Issue 156, 3 June 1937, Page 9

BUSINESS BRISK

DEFENCE TAX DROPPED. SEARCH FOR SUBSTITUTE. CONSULTATIONS UNDER WAY. (United T’ress Association.—By Electric Telegraph.—Copyright.) Received June 3, 8.5 a.m. LONDON, June 2. Conditions resembling a boom returned to the Stock Exchange as a result of the death of the defence contribution and a long list of advances was recorded along a broad front. The Associated Press city correspondent learns that the Treasury experts have begun consultations with representatives of trade and industry indicating that the 'Government is not repeating its error in not considering business men’s advice. The new tax is expected to resemble the old corporation profits tax. 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 rearmamnt should be placed on one class of investors. The gold scare is now the only factor holding back the markets. Despite the United States Treasury’s fiat denial that it is reducing the price of gold, hoarders are acutely nervous and the market is flooded every day by sellers. MR CHAMBERLAIN CHEEKED. LONDON, June l.„ The tremendous cheers which greeted Mr Neville Chamberlain’s announcement of the abandonment of the profit tax expressed the relief not only of the members of the House of Commons but also of industrialists throughout Britain. It is expected that confidence will speedily return to the markets. The Conservative and Radical Press combine in editorial approval. The Daily Telegraph says: “Mr Chamberlain has inaugurated his office as Prime Minister with an act of high courage.”