THE NATIONAL DEBT. [To THE EDITOR es THE "SPECT4TOE."..1 Bra,—Your
correspondent, "J.," who in the Spectator for May 7th criticises Mr. Goschen's appropriation of part of Sir Stafford Northcote's Debt Fund, has brought oat a very salient plea for immediate reduction of the Debt, in noticing the appreciation of gold audits effect in increasing the Debt some millions annually. But in stating his case he has, I think, fallen into an error which, though it does not hurt his main proposition, ie misleading in a partial issue of the case which he gives. Speaking in reference to this unearned increment of the Debt, he says :—" In other words, although under the new arrangement [Mr. Goschen's] we should be nominally paying off five millions, the real pressure of debt would be lightened only to the extent of one and a half millions per annum."
We should in reality, of course, be paying off the actual five millions which was handed over by the Exchequer each year for that purpose (not one and a half millions, as he says), for the appreciation would exist as well in the Exchequer revenue as in the existing debt. At the same time, the nation would be losing, as he computes, as the revenue levied has risen in comparison with other wealth.—I am, Sir, Sm.,
.5 Blenheim Square, Leeds, May 7th. A. S. SANDERS.
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