BANK CUTS AND DIVIDENDS [To the Editor of THE SPECTATOR.]
SIR,—Who would imagine, after reading the letter signed
" M.A. (Oxon)," that the great Banks have not increased their dividends at all since 1914, either to make up for the lower purchasing power of the pound sterling, or to balance the quadrupling of the income tax ? In all cases, I believe, salaries of Bank officials have been raised very largely ; in the case of juniors I fancy that the salaries are at least double what they used to be. Moreover, I understand that the banks pay the income tax on salaries, or at least a large part of it.
. When I suggested some years ago that shareholders should be given something out of the immensely increased turnover of the Westminster Bank, to make up for a paper pound and a five or six shilling income tax, Dr. Walter Leaf replied that the Directors' fees had not been raised, but he said nothing about the increased salaries of the staff.—Yours, etc.,
2 St. Peter's Terrace, Cambridge. J. E. ALLEN.