PAGE PAGE NOTES OF THE WEEK . .233 READERSAND WRITERS. By P. Selver and E. X. B. 248 CU RR EN T CANTCURRENT . .235 MEMOIRS : X DIALOGUE. By Rudolf Presber FOREIGNAFFAIRS. By S. Verdad . 236 (translated by P. Selver) . 250 MILITARYNOTES. By Romney . .237 LETTERSFROM RUSSIA. By C. E. Bechhöfer . 252 LETTERSTO A TRADEUNIONIST-I. By Rowland CURRENTVERSE . .”53 Kenney .237 THE IDEALISTICREACTION AGAINST SCIENCE.By WARAND RELIGION. By DmitriMerezhkovski . 239 CoomaraswamyAnanda . .255 THE CASEOF EGYPT. By MarmadukePickthall . 240 PASTICHE.By P. Selver, H. H., FitzgeraldLane, “THEMENACE OF ENGLISHJUNKERDOM.” By A Arthur F. Thorn . 256 Publicist . 241 LETTERSTO THE EDITOR from C. H. Norman, Per GOBINEAUAND CHAMBERLAIN.By Dr.Oscar Levy 242 Sona, X, A. C. Nash,Arthur Kitson, J. M., THE HYPHENATEDSTATES OF AMERICA--I.By E. H. K. C., Harold Lister, Pteleon, For Rich E. A. B. .“43 and Poor, Millar Dunning, Upton Sinclair, An IMPRESSIONS OF PARIS.By Alice Morning . .245 Admirer of Mosesand Isaiah, Frederick, H. AFFIRMATIONS-I. ARNOLDDOLMETSCH. By Ezra Evans, A. F. T., Fair-to-All, John Duncan, Pound . 246 M. K. Hull, A Music-hallArtiste . 258 NOTES OF THE WEEK. Chancellor of the Exchequer, it will be recollected, stated definitely in the House of Commons that the Stock Ex- FROM time to time during the last four or five months change wouldbe opened under such conditions that the Government has relieved public anxiety by denying there could not be a “bear raid’’ on the new loan. plausible rumours of British disasters or defeats on land *** and sea. In recent weeks so relatively many adverse in- cidentshave become known tothe public, andthe Anotherpoint. Great curiosity wasshown as to the Government has shown itself so weakin dealing- with number of small investors in the present subscription; the exaggerated “telegrams” sent by the correspondents and Mr. Lloyd Georgeannounced their number as of the “Daily Mail” and its litter, that official denials 100,000, as comparedwith 25,000 “small” subscribers havelost much of theirformer effect. Still, it is ad- tothe Boer War loan. A small subscriber, however, means a man who has been able to put up not less than mittedthat official commentsare useful; ’ andthe straight hitting of the Foreign Office authorities at the £100; and many of the small subscribers will have in- “Times”last week will probably not be without in- vested tothe extent of severalhundreds. It iscalcu- fluence on Lord Northcliffe’s latest Press weathercock. lated-again we take City plus official figures-that the We think it all the more necessary, therefore, that some amount subscribed by people who could afford anything clear statement should at once be made by the Chan- from a hundred to six or eight hundred pounds is about cellor of theExchequer regarding the position of our £50,000,000. Inother words, the “great financial in- Funded Loan of £350,000,000, issued a few weeks ago terests”-the phrase includes the English branches of at a price which enables the investor to securea return of one or two American Trusts, by the by-were able to find £300,000,000, as compared with the £50,000,000 four per cent. Of the total sum of £350,000,000 placed, £100,000,000, had been taken up by the bankers at an found by thegeneral public. But, if thebankers had earlier stage, so that the public was called upon to pro- begun by assistingthe Government tothe extent of vide £250,000,000 before the list closed at four o’clock £100,000,000, the Government had extended some re- on November 24. turn to one very important branch of the banking busi- *** ness-not withoutincurring some suspicion of favouritism, as thecase of Mr. Crisp showed.In his It was generally stated in the papers that the issue had speechon November 27, Mr.Lloyd George also an- been largely over-subscribed.Mr. Lloyd George, ina nounced that the total amount of bills discounted by the speech which was postponed two or three times until it Bank of England on behalf of the accepting houses, on was finally delivered on November 27, indicated, though Governmentguarantees, was £120,000,000. “That not, it is held in the City, without some ambiguity, that shows that of the £350,000,000 to £500,000,000 worth the loan had been over-subscribed, thanks to “an appeal of bills which were out at the time, most have been dis- to the public and undoubtedly to the great financial in- posed of in the ordinarycourse. That is very satisfac- terests as ‘well.” The City, on the other hand, declared tory.There are £12,500,000 worth stillrunning, not that the loan had not really been over-subscribed;it had having arrived at maturity.”Mr. Lloyd George further been barely subscribed, and no more. As a proof, City estimated that by theend of the war there would he bankers have been pointing to the unofficial dealings in about £50,000,000 worth of bills in “cold storage.” loan scripbefore the opening of the Stock Exchange. *** For a day or two it was ata premium of about one-half. Then there was a slightdecline, which gradually reached If thefawning financial sycophants who gushover aboutfive-sixteenths under par. The fraction in either the Government’s measures in the City columns of the case is a small one, butit indicates nevertheless that Press tell us that the largeness of the loan subscribed within a few days of their purchase certain speculators fortakes their breath away and leavesthem petrified made up their minds to get rid of their allotment. The with awe at the Chancellor of the Exchequer’s daring, 234 most assuredly the extent to which the Government was and bankers have reached Dutch, Swiss, or English ter- prepared to backup the accepting houses causes even ritory, or other partsof France, in a penniless condition. ourhardened selves toraise our eyebrows, closely The inconvenience which we have suffered here has been though we know the Government will stick to its finan- themerest triflecompared with that which has been cialbackers. Even if weaccept Mr. Lloyd George’s experienced in north-eastern France; and it cannot be statement that the crash caused by the shock to credit if compared at allwith the ruin anddevastation which the Government had not supported the accepting houses have overtaken Belgium. as it had done would have brought about a very serious *** state of things in the industrial world, we must ask why he has not followed his drastic precedent to one or two We shallsurely agree, whenwe remember all this, more of its logical conclusions. We are raising by loan that the complaints of our own wealthy people are un- the sum of £350,000,000 ; we have raised by extra taxa- worthy. Despite the fact that Mr. Lloyd George is rais- tion the sum of £65,550,000,though from this we must ing only £65,000,000 by extrataxation, there are deduct £550,000 for the reduction in the license duty. alreadymurmurs at the increases in the income-tax. This does not take into account the first war credit of Decreases in wages we have already referred to. NearIy £100,000,000. every employer, whether affected by the war or not, has *** taken advantage of the situation to curtail his staff, to add to the normal hours of labour, or to reduce wages. Nowlet us considerone or two, conclusions which As if the infamous National Insurance inquisition were arise from the admitted facts we have given. We may not enough, a tax on wages, we are told, was actually take it for granted that the small investor and the trus- considered by the Cabinet ; and, whether gossip in this tee,anxious to placetheir money safelyat a time of instance was true or not, a tax on wages was certainly unparalleled stress, have already done allthey will be recommended by employers of labour on the plea that able to do towards providing the nation with funds. We direct taxation was becoming too heavy. On this state- mustalso realise that the financiers andbig business ment, which has become fartoo common, and is too houses, largely as they have subscribed to the present easily believed by the average taxpayer, there is a com- loan, will be able to subscribe as largelyto the next. ment to make. It is true that direct taxation has risen. ‘The Government has backed up the banks ; recruiting In 1912 therevenue derived from direct taxation has relieved thewage-bill; and there are manyindus- amounted to £82,432,000, or about 53.4 per cent. of the tries which areworking at highpressure. It must be total tax revenue. In 1913the amount was £83,268,000, remembered thatforeign governments, as well as our representinga percentage of 53.81. In 1871,however, own armyand navy authorities, are buyinglargely in the direct taxpayer’s contribution to revenue was only this country. Russiahas orderedmilitary motors to 30 percent., in 1881 itwas 35.5 percent., in 1891it thevalue of morethan a million sterling ; and many had risen to 43.5 per cent., in 1901it was 48.8 per cent. ; firms which previouslymanufactured touring and and in 1913,as we have said, it was 53.81 per cent. smaller pleasure cars are now turning out motor-omni- *** buses, motor-ambulances, motor-lorries, and motor gun- carriages.France, Russia, and Belgium have been War or nowar, then, for nearlyhalf a century the direct orderingboots from us by the million pairs.Govern- taxpayer has been bearing a greater burden of taxation ment orders for motors of all kinds, boots and shoes, every year, because profits have risen in much greater barbedwire, fencing, hospital beds, cutlery, electrical proportion than taxes, wages, and the cost of luxurious goods, ordnance, small arms, rifles, hosiery, and woollen living.