Finance—Public & Private
A Ministry for Capital THERE Will, I believe, be very general admission of the fact that the present year has been noteworthy for the patriotic response on the part of capitalists and investors throughout the country to appeals by the Chancellor of the Exchequer. The first occasion was last January, when, notwithstanding years of heavy direct taxation, culminating in a further increase last autumn in the Income Tax to 5s. in the £, plus the extra strain involved in paying three-fourths of the tax at one time, the Income Tax payers rushed to pay the increased impost weeks before the usual time, the response being prompted both by patriotism and a desire to support a National Government pledged to a campaign of economy. The second occasion on which this same patriotic effort has been put forward was in the month just concluded. Much to the surprise of everyone, and much to the discomfort of the very small holders of the 5 per cent. War Loan, the Chancellor of the Exchequer on June 80th announced the Government's intention, in the national interest, to reduce the rate of interest from 5 to 31 per cent. In spite, however, of the fact that this meant that the possessor of an income, say, of £200 from War Loan suffered a reduction in such income to £140 per annum, there was a general conviction that the Govern- ment was acting in the national interest and, of course, within its rights, the Government repaying all holders demanding such repayment. Once again investors, great and small, responded with such promptitude that there is little doubt that more than three-fourths of the great 5 per cent. War Loan of £2,085,000,000 has been converted.
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