Finance—Public and Private
" Equality of Sacrifice "
AT the close of my article last week dealing with the National crisis I said that I was inclined to regard the signs of the Government having become aware of the serious state of affairs as " the most hopeful point in the situation which it has been possible to refer to for some considerable time past." Nor am I disposed to modify this expression in any way in view of the fact that during the early part of the past week there was a renewal of depression in the stock markets accom- panied by quite a serious fall in British Government securities. I think, however, it is very necessary to examine the reason for the special depression of the past few days because it has an important bearing upon the general outlook.
If; as has been so frequently asserted, one of the chief causes of unfavourable economic conditions to-day and of an unbalanced Budget is to be found in growth in the national expenditure, it might fairly be supposed that any determined efforts• to curtail expenditure and balance the Budget would have had a good and not a bad effect upon the stock markets, and especially upon Government securities. How comes it then that there should have been such marked depression in Govern- ment stocks during the past week ?
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