LEVY ON WAR WEALTH.

Rangitikei Advocate and Manawatu Argus, Volume XLV, Issue 12015, 18 March 1920, Page 5

LEVY ON WAR WEALTH.

OPPOSED BY BANKERS,. United Frees Association —By Electric Telegraph Copyright. Received March 18, 9 a.m. London, March 16 The opposition of bankers to a capital low on war wealth was voiced before the Commons Committee on 24th February. Mr Martin, chairman of the British Bankers’ Association, said he considered that a tax on war profits was undoubtedly just, but a tax on war wealth as proposed was a direct attack on the thrift of a man who, during the war, had stinted himself to invest in war loans. He would now see his savings raided if they exceeded £2OOO, while a profiteer was scattering his newly-made riches which went free. Dealing with the effect on trade, Mr Martin said the demands on banks for loans for legitimate nnrposes were increasing. A trader wishing to do his prewar trade rf quired at least throe times more caoital. It was a complete fallacy to think that because bankers’ deposits had risen there was at hano a surplus fund which could be tapped by taxation, Mr Agin, joint manager of Lloyds Bank, denied that there was any war wealth. He said the proposal before the Committee was the greatest i low to the credit of the country it had ever had. The tax would follow the great financial efforts made by the people during the war and at a less favourable time. He gave it as the deliberate opinion of himself and prominent financiers end bankers that if the suggested tax was imposed "the country would be in serious danger of a financial panic such as the present generation had never known.