MR. BUTLER'S BUDGET Sra,—Sir Angus Watson says that he grants
• the intention of Mr. Butler's Budget is to enforce reduced spending by our citizens. One presumes that this statement is not meant to be taken as it stands. Most citizens will cer- tainly continue to spend the same amount in tow, except those who spend more drawn from increased wages or past savings.
Surely, the point is that everyone will not spend less as a whole, but will get less for their money—whereby Mr. Butler will save on imports of manufactured goods, and induce higher exports of home manufacturers, who would not otherwise sell their output. (If this is correct and Sir Angus's toper gives up drinking, so that his wife can buy as many saucepans as before, then presumably the old soak defeats Mr. Butler's object?) But might I (uninstructed as I am) now ask how this further home-devaluation of the pound will ultimately help the citizens of this country?
If the money raised by this Budget goes in some way to increase the value of the pound abroad, on a lasting basis, then I may hope that imported goods will be cheaper, and that what I lose on the present swings I shall more than recover on future roundabouts. But are such hopes justified? They never have been since the war. Moreover, are we at all sure that this additional money will not be used (directly or indirectly) for something that will become another permanent drain on our individual resources?—Yours faithfully,
GORDON HUGH The White House, Pelynt, Cornwall
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