FINANCE AND INVESTMEN
By CUSTOS
WITH the spring battle season looming near and the Budget just round the corner, investors can scarcely be expected to dev an offensive spirit. Those with funds available are understan content to wait for buying opportunities on dull days rather bid slightly over the current price to attract sellers. It is significant and reassuring, however, that there is enough of latent support to keep prices very firm. Unless the news from battle front proves to be unexpectedly disconcerting, I see no r why the firm trend which has characterised the markets for months past should be reversed.
BUDGET PROSPECTS
In taking this view, I am not forgetting that next week's B is bound to impose fresh burdens on the taxpayer. Although rev for the past financial year reached a new peak of over L2,000 milli there was still a huge gap between incomings and outgoings to bridged by borrowing. In the -1942-43 financial year this gap the existing level of taxation, will be even wider. The na growth of revenue resulting from the steady rise in the na income, plus the extra yield in a full year from the increases in introduced last April, will be partially offset by reductions in rec from motor duties, &c., following the Government's restrictions petrol and other austerity measures. On the expenditure side all Lombard Street to a china orange that this year's total will at least £300,000,000—it may well be £45o,000,000—higher than 1941-42. Sir Kingsley Wood thus has every inducement, from strictly orthodox financial standpoint, to make another ruthless a upon the taxpayer's pocket.
Whether he will or ought to do so is another matter. Already direct controls on spending are so extensive that the inflation d has been effectively countered over a wide field. Again, it wiser to impose restrictions on the consumption of some goods further rationing than by higher taxation, either direct or hid! I shall be surprised, however, if we are spared fresh increases direct taxation on a moderate scale and some fairly stiff increas the taxes on luxury and semi-luxury goods. Another 6d. Or on the standard rate of income-tax is by no means impossible, a reduction from £2,000 to £1,5oo in the lower limit for s seems almost certain. Even these blows would be suffered WI complaint if at the same time Sir Kingsley Wood removed some the major causes of irritation which are now holding up full duction. He should amend the present arrangements for colic workers' income-tax, abolish the joint assessments of the in of married women and their husbands and tackle the hard under the Excess Profits Tax.
UNITED SERDANG POSITION Shareholders in all rubber-producing companies in the Nether' East Indies will be reassured by the statement of Mr. Eric 1%, which accompanies the full accounts of United Serdang (Suma Mr. Miller discloses that the Netherlands Indies Government declared its intention to pay compensation for loss or damage a by enemy action to commodities and properties. Although the of compensation has not yet been defined, this official dec Contrasts favourably with the absence of any parallel stat from the British Government on the subject of losses suffered Malaya. Last year United" Serdang harvested a record rubber but a sharp increase in taxation reduced net profit by £38,875 £547,233. In view of the occupation of Sumatra by the JaP the board has merely followed the course of prudence in de not to pay a dividend. Fortunately, this company's balance- position is very strong. British Government securities, cash deposit and in hand in London, amount to about £550,000.
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