tRAKSACtiONS OP SECTION P. 



60 r 



of extra revenue shown (which includes non-tax revenue) is lower than the sum 

 of the two previous columns because of loss of other revenue, particularly from 

 stamps. The foregoing table shows that, on the assumptions made, only some 

 B per cent, of the direct cost of the War will have been raised by increased 

 revenue during the sixteen months from December 1, 1914, to March 31 next, 

 and indeed only 65 per cent, if the cost of after-War pensions and allowances 

 is also taken into account. 



' Apart from Treasury Bills and the meagre amount of increased taxation, 

 the cost of the War is being raised on two War Loans. The 85 per cent. War 

 Loan realised 331,000, OOOZ. net. The new 4^ per cent. War Loan has realised 

 a little over 600,000,000/. Pending definite figures as to conversions of old loans 

 (which cannot be known till November), a forecast of the Treasury of Jime 21 

 may be adopted. According to this forecast, 250,000,000/. of Consols and 

 200,000,000/. of the War Loan 1925-28 may be converted, leading, with the 

 600,0(X).000/. of new money, to the following result : 



' This would mean that the assumed cost of the War will (with the excep- 

 tions already given) have been raised as follows : 



Proceeds of 350,000,000/. War Loan 1925-28 £331,000,000 



War Loan 1925-45 600,000,000 



Raised out of revenue in the fiscal years 1914-15 and 1915-16 . . 80,000,000 



£1,011,000,000 



' Assuming for the moment that no further increased taxation comes into 

 force before April next, the picture of the National Debt would be about as 

 follows : 



' This means an increase of 860,000,000/. in the National Debt. Of the 

 1,500,000,000/. rather over 1,100,000,000/. will be redeemable, while practically 

 all of the old National Debt of 640,000,000/. was irredeemable and subject only 

 to purchase in the market, though there was also the alternative of redemption 

 in each conversion scheme. The higher rates of interest on the War Loans will 

 continue until at least 1925, when the 4^ per cent. Loan may be converted at a 

 lower rate of interest. Assuming the 1,100,000,000/. of redeemable debt is 

 redeemed by a Sinking Fund of a fixed annual amount for interest and 

 redemption combined, the annual service would be raised from 48,000,000/. to 

 55,000,000/. if the period of redemption is spi-ead over fifty years. This means 



