TAXATION FEARS.
A further explanation, however, of the depression on he Stock Exchange and the fall in gilt-edged securities is to be found in the apprehensions which have been aroused by the Prime Minister frequently referring to the situation as one calling for equal sacrifices " in balancing the Budget. This-has given rise to all kinds of rumours as to a further increase in the Income Tax or in other forms of direct taxation, while circumstantial reports have been circulated as to the possibility of a special tax on all fixed interest securities, and possibilities of a big Debt Conversion operation have' been discussed in a manner leading the investor almost to apprehend that something in the nature of a forced conversion was intended. Before this article appears in print it is possible that the general outline of the Government's proposals may have been made known, and no useful purpose will be served in my hazarding guesses as to the details of a plan for balancing the Budget. It is, however, in this interval, when there is ignorance as to the Government's scheme, that it is perhaps easier to comment in advance upon certain, broad principles which should govern them.
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