SCRAP THE SINKING FUND?
[To the Editor of the SPECTATOR.]
Sm,—In these days it is fashionable to attack every kind of institution. I did think Government Sinking Funds would be immune, for in the financial problems of the world the propriety of their maintenances did seem unassaihibl a. Mr. Gordon Walker thinks otherwise.
It is a trite maxim of publicists that every generation should bear its own burden. Our present burden, as a result of the Great War, is very heavy, and it is a question as to what amount of it we ought to redeem annually, in other
words, over what length of term the redemption should be spread. To stop redemption would be immoral. There is always a temptation to suspend, and Governments sometimes fall victims to it, but it can only be justified in cases in extremis.
We are so accustomed to speak of investments in Govern- ment stocks that the evil of debt is obscured. It is mainly unproductive, and disarmament would rapidly assist in its redemption. The policy of Sir R. Walpole can safely be dismissed. He was Prime Minister from 1721 to 1742, the latter date being thirty-four years before Adam Smith published his 'classic work. In those days the National Debt was trifling compared with What it is now. Finance is not by any means thoroughly understood to-day; it was much less understood them ; but I thought we did understand it sufficiently to have regarded sinking funds as moral and inviolable.—I am,
Sir, &c., A. W. Cna.mrrorsr, F.S.I.
11 Daleham Gardens, N.W. 3. (Chartered Surveyor).
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