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 ment to create the necessary credit for meeting them by borrowing from the Bank of England on Ways and Means advances and so increasing the amount of cash at the Bank of England held by the other banks.

For this and other reasons it seemed that the volume of outstanding Treasury Bills should somehow be reduced, and with this intention a funding loan was offered in June 1919. All the organization and energy which had been so successfully developed during the war for encouraging subscribers to war loans to lend as much as they possibly could and as much more as they could borrow from their bankers was put into commission to secure the success of the funding loan, but this success was conspicuous by its absence. Already the country was decidedly anxious about the scale of Government expenditure and investors had become imbued with the belief that the only way to make the Government economize was to refuse to provide it with money. They were decidedly sceptical as to whether the sums which they lent would be used for the alleged purpose of reducing the floating debt and openly expressed the opinion that the Government was almost certain to expend it upon other objects. This contention was proved to be almost exactly correct by one of the most