buildings, stores In
Munitions Department, arrears of taxation, and so on. With his 11s.
6d. in the pound on unearned and 6s. in the pound on earned incomes,
Mr Hoare expects a revenue of L620 millions, "or enough to provide for
the interest of the debt with a 1 per cent. Sinking Fund, and
leave L20 millions towards the Supply Services." But Mr Bonar Law
anticipated a total peace Budget (if the war ended by March 31st next)
of L650 millions. This was probably too low, but we may at least hope
that Mr Hoare has gone rather further than was necessary to be on the
safe side.

In the other article on the subject of post-war debt contributed to
the last number of this Journal, an "Ex-M.P." plumped for a somewhat
novel variety of the Levy on Capital, in the shape of a Compulsory
Loan, bearing no interest and repayable in 100 years. Each individual
citizen to be made to subscribe to the extent of 20 per cent. of
his possessions. Ten per cent. of the amount due to be paid on
application, 10 per cent. six months after allotment, and 80 per cent.
on January 1st of the following year. When desired, the Government to
advance at 5 per cent. the money necessary for the payment subsequent
to allotment, full repayment of such advances to be made within
eight years. A Sinking Fund to be established to redeem the loan at
maturity. But is there any real advantage in this scheme over the Levy
on Capital, from which it only differs by the receipt by the payer of
a promise to repay in 100 years' time? The approximate value of
L1000 nominal of the Compulsory Loan stock would be, according to
"Ex-M.P.'s" calculation, in the year of issue L7 12s., money being
worth 5 per cent. and assuming that rate to be current during the
remainder of the term. The claim that there is no confiscation,
because "a perfectly good security is given for the money received,"
would seem rather futile to those who paid L1000 and received a
security, the present value of which might be below L10. They might
very likely think that outright confiscation (since confiscation
originally means nothing but "putting into the Treasury") is really a
simpler way of dealing with the problem. "Ex-M.P.," however, estimates
that the immediate redemption of L2800 millions of debt (which he,
rather modestly, expects to be the result of his 20 per cent. levy)
would enable the balance of the War Debt to be converted into 3-1/2
per cent. stock. This may be true, but if so it is equally