216 POST-WAR FINANCE

enough to provide for the interest of the debt with a
i per cent. Sinking Fund, and leave £20 millions
towards the Supply Services/' But Mr Bonar Law
anticipated a total peace Budget (if the war ended
by March 3ist next) of ^650 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 So per
cent, on January ist 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 £1000
nominal of the Compulsory Loan stock would be,
according to "Ex-M.P.V calculation, in the year
of issue ^7 125., 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,