MARKETS CRUMBLE

Nelson Evening Mail, Volume LXXI, 28 April 1937, Page 6

MARKETS CRUMBLE

WORST DAY SINCE 1931 SUCCESSION OF NASTY SHOCKS UNCERTAINTIES OF PROFITS TAX l United Press Association; Il.v Electric Telegraph Oop.vi igln | LONDON. 27th April, share prices are crumbling badly on markets, which experienced the si day since the autumn of 1931. .he •Financial News” industrial re index is the lowest since July. ,(i. Slid Is have fallen 15 per cent, ice Ist March, equivalent to £56.000.0. Even the extra halfpenny a galn just imposed on petrol has not Led them. Westwitwaters - Rands topped £13.000.000. and John Browns d 2.000.000 in the same period. Bargain hunters, who noimallj cushion the markets, are holding oil as, owing to the profits tax unceitaintics, no one knows what prices are reasonable, though it is generally considered that the liquidation cannot go on indefinitely. The markets have received a succession of nasty shocks from which they will take lime to recover. Many who were iorced to sell have taken severe losses. The Paris Bourse also is experiencing hard times. Yesterday was described as "Black Monday." It saw all classes of securities marked down owing to the growing extremist pressure on M. Blum. The nervousness on Wall Street is also a depressing factor.

UPWARD TURN OF PRICES

PANIC ON HUNGARIAN BOURSE (Received 28th April, 10.55 a.m.) LONDON, 27th April. Sentiment on the share markets, which experienced such a bad day. completely changed after lunch, and prices have begun to turn upwards. A panic on the Hungarian Bourse resulted in the annulment of all transactions. involving losses of more than 10 per cent. The Vienna Bourse was severely affected in sympathy. PROFITS TAX MILD AND MODERATE PROPOSAL NOT INTOLERABLE BURDEN ON INDUSTRY MR CHAMBERLAIN'S SPEECH | British OMicial Wireless] (Received 28th April, 12.30 p.m.) RUGBY, 27th April. Mr Neville Chamberlain, the Chancellor of the Exchequer, spoke in the House ol Commons on the Budget resolution relating to the proposal national defence contribution. Fie scouted the eiaim of the Opposition that the proposal was the main cause of the fa'ls. of industrials and other ordinary shares on the London Stock Exchange. He reminded the House that the Continental bourses were likewise disturbed where no such proposal was in question, but he admitted that uncertainty regarding the new tax was an element in the depressed condition of the London markets.

Mr Chamberlain expressed surprise at the extent of the danger it had been suggested would be done by what he regarded as a mild and moderate proposal. The Treasury was in a reasonably good position to estimate the effects of the proposed taxation, and it was not expecting a higher yield than between £20,000,000 and £25.000,000 in the financial year of 1937-38. Surely that was not an intolerable burden on industry. In reference to the anticipated effects of defence expenditure on expansion of industry, Mr Chamberlain said exceptional expenditure would have to end. It was not unlimited. “We are not seeking to dominate the world,” added Mr Chamberlain. “We arc seeking only to make ourselves and oar Empire communications safe. Therefore I feel justified in saying we are not faced here with an unlimited or an indefinite amount of expenditure.” Mr Chamberlain said he was receiving the comments of financial and industrial worlds and would study all this data in a most sympathetic manner. RESOLUTION AGREED TO The profits tax resolution was agreed to. The Finance Bill was read a first I time.