the blocking of excess dividends in Government stock. The disappearance of the  
'gap' between shares and debentures is attributed to the 'constantly increasing  
proportion of undistributed profits which has transformed the shareholder into  
a rentier.'"  
                                                            
 
"In fiscal policy no major change was initiated, and the system of what   
is described as 'silent finance' was continued. The increasing dependence on   
loans did not lead to new turns of the taxation screw; on the contrary, the   
Minister expressly gave an assurance that no new taxes were intended for 1941.   
The exception from this rule, the new speculation tax, is of no real fiscal   
                        importance."                        
 
                                                            
 
 
There is a continuing difficulty in distinguishing between income from   
the sale of capital assets and actual income. Excess profits tax rejected.   
   The "liquidity" continues and new savings were up 50%.   
 
                                                            
 
 
                          2/26/42                           
 
                                                            
 
 
                            -7-