10 JULY 1920, Page 2

On Thursday week the Chancellor of the Exchequer re- ceived

a deputation from the Federation of British Industries on the subject of the proposed increase of the excess profits duty from 40 to 60 per cent. The deputation urged that the present duty already inflicts the greatest harm on the industries of the country. They are of opinion that the increase will be catastrophic. Since the Budget " the textile trade had threatened to cease altogether." Firms which were doing well and had good orders were not anxious to make more than their standard profit because of the amount of floating espital required to run their businesses. They were therefore beginning to work short time. Firms were unwilling to take necessary risks because of the certain limitation of their profits.