The Cabinet Committee.
Ministers who had spent the week-end in their holiday retreats returned to London on Monday to decide on their programme. This was presented to the full Cabinet on Wednesday. Mr. Snowden, last week, denied that his colleagues would propose an all-round import duty of 10 per cent., but the suggestion finds much favour in the Labour ranks. The suspension of the Sinking Fund is talked of ; it is an obvious but risky expedient. The City anticipates a special impost on fixed-interest- bearing securities, whose holders have gained by the fall in the value of money—though on the other hand they already pay a higher income tax, on the theory that such securities represent " unearned " money. We will only say now that, while increased taxation may be necessary, it must be accompanied by really serious and resolute reductions in expenditure. Those who think that the Budget can be balanced simply by piling more burdens on the small minority who pay direct taxes deceive themselves.
