It would require greater local knowledge than any possessed by the writer of the present article either to endorse or to reject these formidable accusations, although it may be said that the violence of Sir George Scott's invective is not very convincing, but rather raises a strong suspicion that he has overstated his case. Nothing is more difficult, either for a private individual or for a State financier, than to decide the question of when to be bold and when cautious in the matter of capital outlay. It is quite possible to push to an extreme the commonplace, albeit attractive, argument that large expenditure will be amply remunerative, or even if not directly remunerative, highly beneficial "in the long run." Although this plea is often--indeed, perhaps generally--valid, it is none the less true that the run which is foreshadowed is at times so long as to make the taxpayer, who has to bear the present cost, gasp for breath before the promised goal is reached. Pericles, by laying out huge sums on the public buildings of Athens, earned the undying gratitude of artistic posterity. Whether his action was in the true interests of his Athenian contemporaries is perhaps rather more doubtful. The recent history of Argentina is an instance of a country in which, as subsequent events have proved, the plea for lavish capital expenditure was perfectly justifiable, but in which, nevertheless, the over-haste shown in incurring heavy liabilities led to much temporary inconvenience and even disaster. But on the whole it may be said that where all the general conditions are favourable, and point conclusively to the possibility and probability of fairly rapid economic development, a bold financial policy may and should be adopted, even although it may not be easy to prove beforehand by very exact calculations that any special project under consideration will be directly remunerative. Egyptian finance is a case in point. At a time when the country was in the throes of bankruptcy, a fresh loan of £1,000,000 was, to the dismay of the conventional financiers, contracted, the proceeds of which were spent on irrigation works. So also the construction of the Assouan dam, which cost nearly double the sum originally estimated, was taken in hand at a moment when a liability of a wholly unknown amount on account of the war in the Soudan was hanging over the head of the Egyptian Treasury. In both of these cases subsequent events amply justified the financial audacity which had been shown. In the case of Burma there appears to be no doubt as to the wealth of the province or its capacity for further development. In view of all the circumstances of the case the amount of twelve millions, which is apparently all that has been spent on railway construction since 1869, would certainly appear to be rather a niggardly sum. In spite, therefore, of the very unnecessary warmth with which Sir George Scott has urged his views, it is to be hoped that his plea for the