A.-5

196

25 April 1907.

suppose it has a certain measure of correctness, that Consols may be taken as a standard in respect of these securities, without regard to the continually changing circumstances affecting them specially. CHANCELLOR OF THE EXCHEQUER : All comparisons of that kind must be taken with a good many deductions, of course; they are not put forward as mathematically accurate, of course. There are lots of things that happen in the interval, for instance, the war; and great difficulties were caused there. Mr. DEAKIN : Yes. Besides the great prosperity of New South Wales and New Zealand affects the prices of their bonds quoted here. CHANCELLOR OF THE EXCHEQUER : All these must be regarded as illustrations. They are not put forward as demonstrations, but I think the facts stated in that memorandum show that we are really treating the Colonial securities with a preference of a very substantial kind as compared with every other security, including some of our own—including a large number of our own—considering the amount of securities that have been issued by our own municipalities. Mr. DEAKIN : We always make a broad distinction between our municipal securities and State securities. CHANCELLOR OF THE EXCHEQUER : Particularly if compared with foreign and leaving out municipal securities, we have given a very substantial preference to the Colonies which I think ought to be regarded as final for the time being at any rate. I think that concludes our Agenda, does it not, for the moment? It comes to this, Mr. Deakin, as far as you are concerned, that you would like on the question of the silver coinage to have those further particulars for which you asked and then to have a further discussion on the subject.

DOUBLE PAYMENT OF INCOME TAX. Sir JOSEPH WARD : Referring further to the question of double payment of income tax, Mr. Asquith, I would like a little further information. We have had a great many representations about it in New Zealand from time to time. Take a shareholder in a company that is registered in ' England and earns its money in New Zealand, as-mming he gets 1,000/. as a dividend from that company do you charge the income tax to the company on the whole of its profits here, including of course the 1,000/., and then to the individual shareholder on his 1,000/. too? CHANCELLOR OF THE EXCHEQUER: Is he resident in New Zealand ? Sir JOSEPH WARD : If resident here. CHANCELLOR OF THE EXCHEQUER : If resident here, if the income tax is charged to the company then we are satisfied as far as we are concerned, and the company proceeds to deduct from his dividend his proportionate share of the tax which they have paid to the Government here. Sir JOSEPH WARD : And the shareholder is not charged again ? CHANCELLOR OF THE EXCHEQUER : No

Stamp Charges on Colonial Bonds. (Mr. Deakin.)

Double Payment of Incomb Tax.