* . * PURCHASING POWER.
One point made by Sir Frederick seems to me of particular interest, and is one which I fancy will be appreciated by all concerned in retail business. Sir Frederick was referring to the moderate impetus which had undoubtedly been given a year ago by the reduction of sixpence in the Income Tax. He then suggested, however, that the incomes of the clients of the Company are for the most part considerably less than they were, " and though that sixpence off the Income Tax un- doubtedly stimulated our sales, yet the investments of the great majority of our customers are on a 31 per cent. basis instead of a 5 per cent. basis, so to speak, and there is conse- quently less money to spend than there used to be." In fact, speaking generally, the amount represented by the concession in the standard rate of Income Tax falls far short of what has been saved by the Government through conversion operations. Moreover, Sir Frederick also pointed out that there was a fear that any help the Budget concessions may bring might be counter-balanced by an increase of beat rates of 1s. in the £, which he said will cost the Army and Navy Stores something like £3,000 a year with no corresponding benefit.
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