The Economist o May 4th, in discussing the Budget, points
out a fact in the financial position which has been generally overlooked, but which is of the most satisfactory kind. We could at this moment raise a war loan of fully 2200,000,000, and possibly a little more, without imposing a penny more taxation on the people than they bear at preser4, As usual, we should go on putting aside £25,000,000 a year for the service of the Debt, and yet have 2200,000,000 in hand as a war fund. The explanation is, that of the 225,000,000 set apart to meet the service of the Debt, only some 219,000,000 is required for interest, and the remaining 26,000,000 is used in redeeming the National Debt. We have only, then, to stop this paying-off, and use the sums now employed in that way to pay interest to get a 2200,000,000 loan without extra taxation. Just think what we could do in the way of obtaining the sinews of war if we were put to it By raising the Income-tax to Is. 6d., increasing the beer, spirit, and tobacco taxes, and by putting an extra 2d. on tea, we could instantly, and without seriously feeling it, increase our income by something like 230,000,000 a year.
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