paying an Income Tax which they regard as extortionate, should
consider that the working classes by their continuous demands for
higher wages to meet higher cost of living, are trying to exploit
the country in their own interests in a time of national crisis, and
displaying a most unedifying spirit. The social result of this evil
policy of inflation, in embittering class against class, is a matter
which it is difficult to exaggerate. Some people think that it was
inevitable. This is too wide a question to be entered into now, but
at least it must be contended that if it is inevitable the extent to
which it is being practised might have been very greatly diminished.

Do we mean to go on to the end of the war with this muddling policy of
bad finance? If we still insist on believing that the war cannot last
another six months, and there is therefore no need to pull ourselves
up short financially and put things in order, then we certainly shall
do so. But we should surely recognise that there is at least a chance
that the war may go on for years, that if so our present financial
methods will leave us with a burden of debt which is appalling to
consider, and that in any case, whether the war lasts another six
months or another six years, a reform of our financial methods is long
overdue, is inevitable some time, and will pay us better the sooner it
is set about.




IV

WAR FINANCE AS IT MIGHT HAVE BEEN--II