12 SEPTEMBER 1925, Page 15


[To the Editor of the SPECTATOR.] Sin, —I am glad that your correspondent, " E. J. C.," takes exception to the view that War Loan Stock was subscribed Mr in paper and, therefore, should be repaid at less than its par value. If we get down to bedrock, we shall find, surely, that paper, equally with gOld, is earned by work done. The work, after hibernating awhile as gold or paper, is exchanged for an annuity. It is immaterial whether the medium is gold or paper in the present instance. Subscribers to War Loan Stock received no more paper pounds than the number of gold pounds which they would have- received had gold remained the sole legal tender. Or is it argued that most subscriptions arose from profits which otherwise would not have been Made ?

The paper pound was accepted as a makeshift in the expectation of an ultimate return to gold. Further, the amount of the annuity was guaranteed for a fixed number of years, not for the life of the paper pound.—I am, Sir, &c.,