N.D.C.
The principle of Mr. Chamberlain's National Defence Contribution has been approved by all sections of the com- munity except Mr. Keynes and the City of London. The concessions he has made in the Finance Bill will not satisfy his critics. While the Daily Herald says of them - " Chancellor gives in to Big Business," The Financial News, which has led the attack on Mr. Chamberlain, says of his biggest amendment that "it is certainly one of the most grudging, niggardly and parsimonious concessions to a united demand. from industry that could be imagined." Mr. Chamberlain ha's conceded a revision in the basic period for calculating profits by allowing a choice of any three of the years 1933-36, or any two of the years 1933-35; the right of the representatives of any industry to apply to the Commissioners of Income Tax for a revision of the normal method of calculating capital and standard percentage of profits ; an alteration of the graduation of the tax ; and special provisions for new businesses. But with what is called "mulish obstinacy," he has stuck to the original principle of his tax, though its yield will now be very much smaller, so much indeed that doubt arises whether the return, immediately at least, justifies the cumbersome machinery of applying it ; and this obstinacy will win him the approval of all but his equally obstinate opponents in the City. There is fortunately no indication that the new Prime Minister, though he will be pressed, means to give up the tax altogether.
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