BRITISH FINANCES.

Taranaki Herald, Volume LXVIII, Issue 16762, 11 June 1920, Page 3

BRITISH FINANCES.

LEVY ON CAPITAL REJECTED.

LOANS BEING REPAID,

By Telegraph—Press Assn.—Copyright.

LONDON, June 8

In tho House of Conn*his, Air. Austen Chamberlain (Chancellor of tlie Exchequer) explained the Government's decision not to impose a levy on war wealth.

ire pointed out that as payment could he made in Government securities, tho levy would not materially reduce tho floating debt. Ho emphasised the fears of business men as regards the effect of the levy, and stated tho excess profits’ duty would produce twice as much as tho levy ill tho same period- Ho now proposed to maintain tlie excess profits’ duty at CO per cent, this year, and continue its duty, or its equivalent, for a longer period than would otherwise have been necessary. Air. Chamberlain paid a warm tribute to the manner in which the rich had borne their financial sacrifices, and lie gave figures showing that iii some cases only about os in tiio £ was left to recipients of large incomes after taxes had been paid. No other country had attempted a financial effort comparable with Britain’s, and there was no other country in which the well-to-do people were so heavily taxed.

Illustrating the financial recovery of Britain, Air. Chamberlain referred to tho rise in tho dollar ■ exchange, and stated that wo wore in a position to buy our half of tho Anglo-French loan, in America and to meet all other market obligations of tho Treasury in the United States to the end of 1920 with a satisfactory margin. Our debt of 100 million dollars to Argentina would be redeemed in a few days, and the loan of 20 million yen from Japan would bo paid off in a month, while provision had been made .qt Home for a reduction of the debt by £230,000,000 this year, and £300,000,000 next year without additional taxation.—Aus.-N.Z. Cable Assn.