WILL BUDGET FOR SURPLUS

Timaru Herald, Volume CXLIII, Issue 20672, 10 March 1937, Page 9

WILL BUDGET FOR SURPLUS

MR CHAMBERLAIN’S HEAVY TASK LONDON'S VIEW OF TAXATION United Press Association—By Electric Telegraph-Copyright (Received March 9, 6.30 p.m.) LONDON, March 7. Assuming that the Chancellor of the Exchequer requires the same sum as last year to meet debt charges, total Budget expenditure in 1937-38 will be £885,000,000. The total cost of armaments is £90,100,000 higher, but owing to borrowing, the taxpayer will be required to meet only £10,100,000 of this amount. The increase in civil expenditure, only £6,700,000, may be even less and therefore it seems that increased taxation will be unnecessary, and the buoyancy of revenue should even make a small reduction possible. Nobody, however, believes that there is the slightest hope of this. On the contrary, Mr Chamberkin will probably budget for a surplus, fixing income tax at 5s and thereby enabling the extent of Government borrowing to be determined by the revenue yield. Gilt-edges fnished the week raggedly, but this is attributed less to the Budget than to Labour’s success at the London County Council elections and to fears of a repatriation of French capital. Base Metals Buoyant Stock markets made i poor showing with the exception of rubbers, which are steadily advancing. Base metal shares were also buoyant on further rises. Industrials were quiet, and the removal of the duty on pig iron discouraged irons and steels. The Lor don wool sales gave a useful lead to Bradford, though business remains quiet It is expected tha f a good deal of trade at higher levels will be brought out during the next few weeks, provided T ondon remains firm. The general opinion is that top values have been recorded, and that the middle of February will prove the lowest point of the season. Earlier weak selling is now seen to have been wholly unjustified and responsible traders are so confident that thiy refuse to sell tops at prices differing more than a shade from those for wool. The Butter Market Butter showed unexpected strength and holders are reluctant to sell in view of the comparatively short q .antities of Empire butter available. Hides were in good demand, supplies being unequal to requirements. Prices of new season’s New Zealand lamb were firm, which was contrary to expectations, as arrhsls were very heavy. Australian lamb was also in supply and met an easier market. Chilled beef was in steady demand and frozen beef, of which only small quantities were available, was slow.