88 THE BRITISH APPROACH TO POLITICS

between the King's private accounts and those of the State.
In 1688 this distinction appeared, when the King's expenditure
was set apart in the Civil List: George III, on his accession in
1760, surrendered the Crown Lands to the State and the Civil
List was accordingly increased. The growth of public expenditure,
and of taxation with it, has made Crown Lands to-day only a
very small proportion of the total revenue.

All the money thus collected is paid into the "Consolidated *
Fund" to the account of H.M. Exchequer at the Bank of
England. From time to time the Treasury requires an official
called the Comptroller-General to require the Bank to enable
the Paymaster-General to let the various Departments have the
money they need. This long-drawn-out procedure is intended
to ensure that Parliament, to whom the Comptroller-General
is responsible, shall have control over all money spent. The
estimates which each Department makes of its probable expendi-
ture for the next year all come under the eye of Treasury officials,
and much consultation will be held between the Treasury and
the Departments with the object of keeping expenditure down.

The Government spends regularly throughout the year, but
its income arrives irregularly; particularly large amounts arrive
from Income Tax in January, February and March, the last
three months of the Financial year. To provide the Government
with money before it is collected, the Treasury borrows by
issuing "Treasury Bills"—ie., promises to repay in three or six
months' time* Treasury officials must therefore be acquainted
with the business world; they must know when it is easiest to
borrow money, and what is the lowest rate of interest the
Government need offer in order to get what it requires. This is
also true when the Government is borrowing larger sums, and,
for longer periods, as it is now doing for armaments. For these
purposes the Treasury keeps in close touch with the Bank of
England, from whom it also receives the profit made by issuing
currency notes. Since the plans of the Treasury for taxation
and borrowing affect the business world and the chances of