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 behind, the interest and redemption of which have to be met from taxation. It thus postpones taxation and holds it over until after the war. This is not a good thing to do in the case of a people that is prepared to face war's burden at once, because taxation is more easily paid in war-time, when industry is fully occupied with turning out goods to meet an insatiable demand, than it is when peace comes and industry is faced with the difficult task of readjustment. The taxation needed for debt charge, when the debt is held at home, only distributes and does not lessen the nation's wealth; but it is not therefore any more pleasant to those who have to pay it. But from the point of view of politicians who want to make things look pretty, the borrowing system has the advantage that it gulls the nation with the belief that the war is not hurting its pocket very much. The Government hands out promises to pay in the shape of War Loans and the citizens are apt to forget that when the Government promises to pay it can only meet its promises out of their pockets.

This delusion would not do much harm, if all the nation were affected equally. If we preferred to leave the task of paying for the war to those who were patriotic enough to save,