The Government, unable to increase taxes indefinitely, depends more and more on bonds to finance the war. But, subscription to such bonds has become lower because the market has been saturated with earlier issues and "There have also. been cases where the decision, when it is ultimately received, shows on the face of it a complete failure to understand commercial practice. The exasperation that is caused is increased by the knowledge that any further representations can be made only to the Department or Ministry which has already demonstrated its failure to appreciate the need for immediate action or to understand business usage.
"The London Chamber in the middle of September, urged upon the Government that some body in the nature of a general staff should set up to which responsible and representative organizations could appeal in cases where decisions on urgent matters were delayed, or where the decision taken was on technical grounds palpably and demonstrably wrong. Such a body would require authority, as well as knowledge of organization, so that it would- be able to investigate effectively the conditions in the Ministry or Department which had produced these undesirable results.
"It is not at present clear whether it is intended that Lord Stamp's committee should undertake tasks of this kind, but there is no doubt whatever that the country can afford neither the material loss nor the damage to the morale of the business community that must be involved by delay and ineptitude." moreover, it has become increasingly difficult for the Bank of Japan arid other banks to resell the bonds to the public.
Government bonds therefore remain in bank safes or in the vaults of the main public institutions while bank tes remain in circulation. The number of notes in circulation therefore slowly but surely gets higher, just like the water in a lake into which more liquid is poured in than is taken out, An unavoidable consequence of this situation is the corresponding increase in prices, in turn causing more notes to be put into circulation, and establishing a "vicious circle" of inflation.—Havas.
Text read from the printed page and cleaned; old type leaves the occasional error.