nue of L842 millions, and leaving a total deficit of
L2130 millions to be provided by borrowing. Increases in taxation
on spirits, beer, tobacco, and sugar bring in a total of nearly L41
millions. An increase of a penny in the stamp duty on cheques is
estimated to bring in L750,000 this year and a million in a full year,
and the increases in the income tax and the super-tax will bring in
L23 millions in the present year and L61 millions in a full year.
Increases in postal charges will bring in L3-1/2 millions this year
and L4 millions in a full year.

There has been little serious criticism of these changes in taxation
except that many people, who seem to regard the penny post as a kind
of fetish, have expressed regret that the postal rate of the letter
should be raised to 1-1/2 d. This addition seems to me to be merely an
inadequate recognition of the depreciation of the buying power of the
penny and to be fully warranted by the country's circumstances. Either
it will bring in revenue or it will save the Post Office labour, and
whichever of these objects is achieved will increase the country's
power to continue the war. The extra penny stamp on cheques has been
rather absurdly objected to as being likely to increase inflation.
Since the effect of it is likely to be that people will draw a smaller
number of small cheques, and will make a larger number of their
purchases by means of Treasury notes, the tax will merely result
in the substitution of one form of currency for another, and it is
difficult to see how this process will in any way increase inflation.
Other arguments might be adduced, which make it undesirable to
increase the outstanding amounts of Treasury notes, but in the matter
of inflation through addition to paper currency, it seems to me that
the proposed tax is entirely blameless. The increase of a shilling in
income tax and super-tax produced a feeling of relief in the City,
being considerably lower than had been anticipated. It is hardly the
business of the Chancellor of the Exchequer in this most serious
crisis to produce feelings of relief among the taxpayers, and it seems
to me a great pity that he did not make much freer use of these most
equitable forms of taxation, having first made arrangements (which
could easily have been done) by which their very severe pressure would
have been relieved upon those who have families to bring up. Death
duties, again, he altogether omitted as a source of extra re