SIR,—No doubt Mr. Spearman's interesting article on The Chancellor's Chance
would be very true if it were not for the overriding factor that we, in this country, have to buy -our bread and butter from overseas. Consequently, we are dependent on international currency exchanges, which must be the governing consideration for any Chancellor. • I think Custos in his Finance article comes nearer to the main alternatives or dilemma which confronts the Chancellor. With rising world food prices, he can either face an increasing food subsidy, which may at any time become unbearable, or he can allow retail prices and the cost of living to rise, with all the consequent social and industrial upheaval. A third alternative is to force the value of sterling upwards and accelerate any deflationary tendency—a step which Mr. Spearman so much fears. I do not dare-to prophesy- what course the Chancellor will follow, but I cannot help thinking this dilemma in which he finds himself influenced the decision to ration bread. Less wheat at an increasing price might post- pone, but not solve, his problem.—Yours faithfully,
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