Turning to the other side of the account, what can be done to increase the revenue of the State? It has been estimated that for the year 1919-20 it will amount to L900,000,000, but of this L300,000,000 is excess profits duty, which can hardly continue--in its present form at least--beyond the period during which additional expenditure above the permanent normal requirements is needed, in order to carry out demobilisation. Putting the permanent charge to meet interest on debt and the cost of the public services at L670,000,000, there may be a deficit even if the present rate of taxation is maintained, and the normal expenditure remains at its existing level. There will be no surplus for the reduction of debt, or to meet new demands. Some new sources of revenue must, if possible, be found, and the old ones require readjustment. Income tax, if levied on the present system, has touched the extreme limit. A rate of taxation willingly borne to meet the cost of war while danger threatened will be felt more and more burdensome as time goes on. To meet a higher income tax there will be pressure to increase salaries paid by the Government and all public authorities. An official salary fixed at L5,000 a year when income tax was one shilling and sixpence, may be thought insufficient when it is nearly ten shillings including super-tax. Persons have incurred liabilities for rent and other fixed payments which they are not able to reduce. All along the line there will be claims for higher payments for services rendered or goods supplied. On the other hand, industrial undertakings will have to pay more for the capital they must borrow to carry on and develop their work, and 6 per cent. instead of 4 per cent. will have to be paid for debenture capital now raised by the best industrial companies. For those who have money to lend, the burden of tax may thus be practically met by an increased income, but for those whose money is locked up in permanent investments there will be no indirect relief in higher rates of interest. Income tax, house duty, and rates will absorb so much that the margin for voluntary expenditure will be small even out of incomes that are nominally high.