_TAXATION AND BANK RATE.
Before, however, pointing out the manner in which our going off the gold standard has affected the security mar- kets, it may be well to remember that _there have been certain other influences which even if we had not departed from the gold standard would have had an adverse effect upon British funds. In the first place, it must be -remembered that only a few weeks ago in his revised Budget Mr. Snowden imposed additional burdens both on the income and super-tax payer, and, other things being equal, the higher the rate of the income tax, the more marked the tendency on the part of the investor to seek a higher yield on his investment so as to enable him or her to pay the additional tax. Then, again, it must be remembered that Bank rate is now 6 per cent., as compared with only 3 per cent.- at this time last year, and if we were to refer back, say, a little more than two years ago when Bank rate was only 5i per cent., we should find that 21 per cent. Consols, for example, were rather under their present level.
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