XV

x POST-WAR FINANCE
November, 1918

Taxation after the War—-Mr. Hoare's Scheme described and
analysed—The Position of the Rentier-^-Estimates of the
Post-War Debt—The Compulsory Loan Proposal—What
Advantages has it over a Levy on Capital ?—The Argument
irom Social Justice—Questions still to be answered—The
Choice between a Levy and Stiff Taxation—Are we still a
Creditor Nation ?—Our Debt not a Hopeless Problem—
Suggestions for solving it.

UNDER this heading two very interesting articles
were contributed to the October issue of Sperling's
Journal by Mr Alfred Hoare and an "Ex-M.P.,"
and the subject is clearly one to which, now that the
end of the war has been brought appreciably nearer
by the feats of the Allied armies, too much thought
and discussion can hardly be given. How are we
going to face the problem that has been built up for us
by the bad finance of the war, the low proportion of
its cost that has been paid for out of taxation, and the
consequent huge debt with which—it is already over
£7000 millions gross—the State will be saddled ?
Mr. Hoare answered the question by proposing a
scheme of taxation of what he called Rente, by
which he meant all forms of " unearned income "
—" rentals from freehold and leasehold property,