NATIONAL EXPENDITURE.
[To rim Dame or rem " srarmea."]
Stn,—There is an omission from the calculation made when dealing with the Budget in the article published on May 8th, for that article takes no account of the reduction in the Navy charges which will be brought about by victory: During the past fourteen years our expenditure on the Navy has risen by more than twenty-five millions sterling per annum ; that is to say, by the interest charged upon a thousand millions at 2}-per cent. Taking it at 4 per cent. —the present rate—the difference represents over £600,000,000 of capital. It is only reasonable to assume that as one result of the victory we shall, after the first year or two, be able to reduce the Navy charges to the level of twelve years ago, which is about £24,000,000 per annum instead of the present (nearly 250,000,000). Consequently in that difference of Navy charges we have the interest upon almost the whole of the War Debt which at present is being raised ; and this is a consideration to be borne in mind, especially as it takes no account of the yield of increased taxation or possible war indemnity.—I am,
[Possibly; but will not the coat of obtaining command of the air—a vital matter to our island—equal whatever we may save on the Navy P Besides, our Army is bound to cost us more.—En. Spectator.]
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