BALANCING THE BUDGET.
As regards the re-establishment of an equilibrium in the National Balance Sheet, or, in other words, the balancing of the Budget, the task is a supremely difficult one because of past extravagance, while by reason- of the general industrial depression it is difficult to make judi- cious cuts in expenditure which shall not unduly dis- organize the situation and aggravate the problem of unemployment. On the other side of the Balance Sheet it is difficult to secure fresh revenues along lines which shall not discourage capital and enterprise at a time when every possible encouragement is required. Moreover, this question of an increase in direct taxation is the more difficult because the Government -will be anxious to achieve a permanent saving along the lines of a suc- cessful voluntary conversion of debt. That, in its turn, however, can only be accomplished by bringing about a rise in market quotations of existing Government securi- ties.
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