question of a levy on capital in the _New Statesman_
well known to be the organ of Mr Sidney Webb and other members of the
Fabian Society. These distinguished and very intellectual Socialists
would, of course, be quite pleased if, in an apparent endeavour to pay
for the war, they actually succeeded in securing, by the Government's
acquisition of blocks of securities from property owners, that
official control of industry and production which is the object of
State Socialists.

It will be noted, however, in this scheme that no mention is made of
any forms of property to be accepted by the Government in lieu of cash
except securities and mortgages on land. Items such as furniture,
books, pictures and jewellery are ignored, and in one of the articles
in the _New Statesman_, discussing the question of a capital levy, it
was distinctly suggested that these commodities should be left out
of the scheme so as to save the trouble involved by valuation.
Unfortunately, if we leave out these forms of property the natural
result is to stimulate the tendency, lately shown by an unfortunately
large number of patriotic taxpayers, of putting money into pearl
necklaces and other such gewgaws in order to avoid income tax. If
by buying fur coats, old masters and diamond tiaras it will be be
possible in future to avoid paying, not only income tax, but also a
capital levy, it is to be feared that appeals to people to save their
money and invest it in War Bonds are likely to be seriously interfered
with.

Unfortunately, the _Statesman_ was able to announce that the appeal
for this system of taxation had been received with a good deal of
sympathy by the Chancellor of the Exchequer, and the next stage in the
history of the agitation was the publication on Boxing Day in several
of the daily papers of what appeared to be an official summary, issued
through the Central News, of what the Chancellor had said to the
deputation of Labour Leaders introduced by Mr Sidney Webb, which
waited on him, as already described, in the middle of November. Having
pointed out that he had never seen any proposal which seemed to him
to be practicable for getting money during the war by conscripting
wealth, Mr Bonar Law added that, though "perhaps he had not thought
enough about it to justify him in saying so," his own feeling was that
it would be better, both for the wealthy classes and the country, to
have this levy on capital, and reduce the burden of the nation