11 MAY 1929, Page 34


Moreover, if to the other influences were added th fact of more severe direct taxation, a further impet might be given to the downward. movement (a) beta of the bigger deduction of tax from the dividends ; (6) because of the general blow given to confidence ; and (e) because it would be feared that the policy, while conceivably creating a temporary activity in certain industries and an apparent increase in consuming power, would actually so encroach upon the general wealth fund of the country as to produce ultimate consequences of a serious nature. Moreover, if these apprehensions were fulfilled and British Government securities declined, the chances of national economy along the lines of a profitable debt conversion would be materially reduced.