Financial Notes
TOBACCO SHARES LOWER.
ALL markets are now beginning to conic under the shadow of the approaching Budget, though at present the only department materially affected is the Industrial section, where after a prolonged period of advancing prices, Tobacco shares have given way during the past week on apprehensions that the Budget will contain provisions for increasing the Tobacco Duties. When, however, the serious character of the problem with which the Chancellor -will be confronted in establishing an equilibrium in his new Budget is considered the only surprise is that Budget fears should not have exerted an even greater influence over the markets. Rightly or wrongly, however, the impression has grown that there will be no increase in direct taxation, and consequently investment stocks have not been affected by Budget anticipations. Inasmuch as I cannot pretend to the slightest knowledge of the Chancellor's intentions, I am certainly not disposed to challenge this general impression with regard to the retention of direct taxation at its present level. All that I would say is that these anticipations seem to express a degree of optimism with regard to the Budget for 7927-8 which I can only hope will be justified, not merely by the Budget itself, but by the experi- ence of the Exchequer during the year in question.
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