then pay for it by a twopenny tax on sugar; and that, as a financial statement, is correct. But then this also is correct, that the three and a half millions a year raised to pay for a loan of that amount expended in a past war, means a loss equivalent to an obligation to keep 100,000 unskilled laborers at £35 a year each in idleness for ever. An unskilled laborer does not earn more than that; and that, therefore, is one expression of what the community gives away through such a tax, without real benefit to its producing-power. It is true that three and a half millions is not an amount sufficient to hurt England; but it is a fresh burden on England, and it begins to fall just when it is hardest, that is, when war expenditure and consequent borrowing ceases. It is on the top of the loss of the great customer who has been throwing away, say, £100,000,000 a year, that the new taxation comes, and is, therefore, often so cruelly felt. We have been told, on high financial authority—that of the late Mr. James Wilson—that after Waterloo, when the era of war ended, and the war expenditure ceased, the people found that just when their mighty customer, the Government, ceased to buy everything, and prices suddenly sank, everybody was paying seven-and-sixpence in the pound of his earnings to the State. The reaction was terrible; every man felt nearly ruined, and for at least four years a spirit of economic dishonesty spread among the people, till the ominous words, “the sponge,” began to be uttered aloud. As it happened, the distress did not matter. An enormous development of industry, the result of new inventions and mechanical appliances, rapidly made England rich again; and, followed as it was by a new system of communication, rebuilt the national fortune; but the economic danger for a few years was terrible. Nothing like that is likely to occur again; but still, a great war will touch every household with its consequences before it is done. A shilling income-tax will be felt even by the rich, and will directly deplete the reservoir out of which those who provide the comforts of life are paid. Duties on edible luxuries or necessaries will be felt by the poor in proportion to their poverty, and this the more because they will come on the back of the general “dearness,” especially of eatables, which is the inevitable consequence of war. When the war stops, therefore, there will be distress, great or little, in proportion to the expenditure; but, great or little, equally inevitable, not to be kept-off by any financial arrangement. It may be rendered short, of course, or even innocuous, by other causes, such as a sudden discovery of a new and cheaper motor which, by reducing the energy to be expended on producing a result, positively adds to the national force, and, therefore, to the national producing-power, or by the opening-up of new channels of industry; but, apart from these, there is no avoiding the economic consequence of war.