But expenditure on offensive and defensive armaments, though a most necessary item, is by no means the only item in our national accounts. We spend a great deal of money on education; we ought to spend more. We spend a great deal of money on Home Office matters--factory inspectors and the like; again we ought to spend more. We want to spend money in a variety of other ways upon the improvement of the condition of the people. We want Old Age Pensions, we want free meals for school-children, we want some sort of provision for the unemployed, we want grants in aid of housing and other forms of local activity. How are we to get these things and yet retrench. Will not better education cost money? Will not more efficient factory inspection cost money? Will not Free Feeding cost money? Does not almost every kind of social reform mean increased expenditure? It is significant that the demand for “retrenchment,” which is the Liberal cry in national affairs, is in local affairs the cry of the “Moderates,” that is of the magnates and monopolists who wish to exploit the public. But Liberal or Moderate it is always a reactionary cry. If we are to do our duty by the people, we cannot retrench. And indeed why should we want to retrench--we I mean who profess ourselves Socialists? Our complaint is not that too much of the national revenue goes into the coffers of the state, but that too little finds its way thither. Too much of it goes to swell the incomes and maintain the status of a wealthy class of idle parasites. The more we can get hold of and use for public purposes the better. And the more we pile on taxation (always supposing we pile it on in the right place) the nearer we approach to the Socialist ideal. Retrenchment of public expenditure and the reduction of taxation to a minimum is essentially an individualist policy. The socialist policy is to pool the rents and profits of industry and devote the revenue so obtained to useful public work.