he would have borne the correct duty of 20 per cent. The second would
have £50,000, bringing in, say, £5000 annually, and would be attempting
to pay £8000 out of it, while the third would be paying £2000 a year out
of his income and still be faced with an 80 per cent. charge on his
fortune! His assessment is computed at one point of time, and liquidated
at another, when its incidence is totally different.

If one cannot have a levy complete at the time of imposition, it clearly
ought not to be launched at a time of rapidly changing prices. But that
is, perhaps, when the economic case for it is strongest.


A DESPERATE REMEDY

I do not rule the Capital Levy out as impracticable by any means, but as
a taxation expedient I cannot be enthusiastic about it. It is a
desperate remedy. But if our present temper for "annual" tax relief at
all costs continues, we may _need_ a desperate remedy. Without a levy
what kind of position can you look forward to? Make some assumptions,
not with any virtue in their details, but just in order to determine the
possible prospect. If in fifteen to twenty years reparation payments
have wiped out 1000 millions, debt repayments another 1000, and ordinary
reductions by sinking funds another 1000 millions, you will have the
debt down to 5000 millions, and possibly the lower interest then
effective may bring the annual charge down to some 200 or 225 million
pounds. If the population has reached sixty millions the nominal annual
charge will be reduced from £7 16s. by one-half, but if prices have
dropped further, say half-way, to the pre-war level, the comparable
burden will still be £4 10s. per head.