EFFECTS OF DEAR MONEY. •
There is, of course, still reason to hope that the year will close with a Surplus, but at present it seems doubtful whether it can possibly be of the dimensions hoped for by Mr. Churchill, and it .is one of those occasions where, in. view of the derating scheme, a large margin would undoubtedly. haVe been particularly acceptable. More- over, it is to be feared that in this matter of high debt charge, owing to the rate of interest, there are no signs at present of much improvement in the new financial year. However, as I have said, revenue receipts have a Surprising way of coming in hand over fist at the end of the fiscal year, and it will be easier a fortnight hence to speak more positively than to-day with regard to Budget prospects.
. Moreover, in view . of the arrangement made .by the Chancellor for a fixed amount for the service of the debt"—that fixed amount to include-the Sinking Fund— there is a possibility that, from the standpoint of the National Balance Sheet, the situation may be relieved this year-by the,extra 'cost of the debt charge encroaching upon the Sinking Fund rather than upon the general Revenue Account. In that case, Mr. Churchill's original estimate of surplus may be fulfilled, but, of course, it will then be at the cost of debt redemption,
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