4 SEPTEMBER 1936, Page 20

[To the Editor of TrrE SPECTATOR.] SIR,—Your correspondent, Mr. Sydney

E. Watson, laments the high profits made by the brewers and, in effect, ascribes to these profits the lack of potency in modern beer. Let me assure him that he is on the wrong track. The increased profits are due to two causes, neither of which is related to the quality of the beer.

In the first place, the policy of trustification, by which small breweries are being amalgamated with the larger ones, reduces the overhead expenses to a considerable extent. And secondly, the lifting of part of the tax in 1933 has led to increased consumption. When the Cbancellor made his concession in 1933 it was on the understanding that the brewers would pass on the whole of the remission to the con- sumer. This undertaking has been adhered to in every case.— Yours truly,

OwEN WILLIAMS.

Cambridge House, Poplar Grove, New Malden.