INCOME TAX DEMANDS.
The change in sentiment since last month almost suggests the reply that the former buoyancy of the industrial share market was based on the expectation of definite currency inflation, and that, inflation having been avoided, interest in the market has evaporated. If this is the case, the upward movement was a thoroughly undesirable one. Most of the other explanations which can be suggested for present market dullness must touch at some point on the - factors which were responsible for our leaving the gold standard. One of these influences was undoubtedly a heavy current excess of expenditure over revenue, following a long period during which the provision of " social services had been made the excuse for unsound methods of national finance. The resulting position called for largely increased Income-Tax demands in the Emergency Budget, and also involved exceptionally large collections of that tax on January 1st. It is probable that the actual assessments recently sent out by the Revenue authorities were responsible for the realization of securities, industrial shares among them, to provide the January 1st payments.
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