Courageous Retreat

Many Britons who had thought that newly installed Prime Minister Neville Chamberlain was barren of humor changed their minds last week. Before the wildly cheering House of Commons in his first speech as the nation's leader, "The Unknown" Chamberlain not for the first time revealed a flair for the sardonic.* Of retired Stanley Baldwin he said: "His love of truth wavered only occasionally, when, with a deceit which soon ceased to deceive anybody he was wont to describe himself as a plain, ordinary man. . . . Many comparisons have been made between Baldwin and other great Prime Ministers. For my part I have often thought that, making all due allowance for differences of education and upbringing and country, he comes nearest to Abraham Lincoln."

Stanley Baldwin having been disposed of, the House got down to business. Up for discussion came the tax on growth of profits proposed by Neville Chamberlain in his Budget Speech (TIME, May 3). Leveled at Britain's fattened armament firms, this tax was originally designed to yield an annual revenue of $125,000,000 toward the cost of the Government's $7,500,000,000 five-year armament plan.

Almost to a man the Prime Minister's Conservative Party cracked down on the tax. It was described as "monstrous," as "the most disastrous proposal any government has put forward since the War." Only one Government supporter praised the measure--Sir John Simon, who as newly appointed Chancellor of the Exchequer had to speak well of it. Neville Chamberlain was in the unenviable position of being opposed by the Party of which he had been appointed leader that very day.

All successful British politicians know how to make a virtue of retreat. Next day a contrite Prime Minister rose to his feet, declared: "I do not think I have ever been inclined to show a pig-headed obstinacy." Neville Chamberlain withdrew his tax. He said that Treasury experts were working on a "simpler" corporate profits levy.*

Government supporters shouted themselve hoarse. Business leaders whooped with joyous relief. Telegrams praising the Prime Minister's "wise statesmanship" and "high courage" poured into No. 10 Downing Street. Stock Exchange prices, especially of base metals, shot upward. Neville Chamberlain had no cause to regret his "commonsense attitude."

*In early 1933 during the U. S. banking crisis, Britons waited anxiously for some clue to their Government's financial policy. Over Chancellor of the Exchequer Neville Chamberlain's signature a letter appeared in the London Times, and the country devoured it eagerly. Excerpts: "It may be of interest to record that in walking through St. James's Park today I noticed a grey wagtail. . . . Probably the occurrence of this bird in the heart of London has been recorded before, but I have not myself previously noted it in the Park. P.S. . . . I mean a grey wagtail and not a pied."

*Opinion in London was that this would be a tax of about 4% on profits not only of corporations but of private concerns also, possibly including such professional persons as lawyers, accountants.

This file is automatically generated by a robot program, so reader's discretion is required.