24 SEPTEMBER 1927, Page 35

THE ONE ESSENTIAL.

If the Chancellor of the Exchequer some three or four years ago had adhered to his original programme, it might be said his pledge, to achieve successive large reductions in the annual expenditure he would be making his present conversion proposals on lines very different from those which are expressed in the present prospectus; Heavy national and local taxation is not conducive to profitable Loan Conversions, and the difficulty can only be overcome by economy in the national expenditure. Now—and not on the eve of some General Election— is the moment for the Government to convince the country of its determination to economize.

ARTHUR W. KIDDY.