5-5=
I do not think that we can take this for
granted.
As regards the removal or retention of
salary levies in general, I attach an extract
crafted in C. S. 1).
from a semi-official letter/which gives the
latest ruling on this matter. Admittedly, it
is a more serious matter to remove a levy than
to refuse to impose one; but it appears to be
against all usage and fairness to retain a levy
by way of cautious insurance against possible
future difficulties; and not solely as an
emergency measure to meet a sudden crisis. In
this connection it is worth comparing the saving
to be effected by the proposed modified levy with
the alleged probable deficit of $32 million.
In No. 2 on this file it was estimated that the
1936 levy would effect a saving of 81, 122,000,
made up as follows:-
Z
(a) Levy on sterling salaries
310,000
(b) Levy on dollar salaries
212,000
(c) Saving due to arbitrary
conversion rate for
sterling salaries
600,000
1,122,000
Under the scheme proposed for 1937, (c) would
practically disappear, as the proposed conversion rate of 1/3 will probably approximate quite
closely