DEFERRED PAY RELEASE AND CAPITAL LEVY 47

Nevertheless it has been my experience that nopart of the scheme has raised more doubts thanthis supposed difficulty about the ultimate repay-ment of the blocked deposits. I am surprised atthis criticism which seems to me unreasonable.For the National Debt will be no greater than ifthe same results were produced by voluntarysavings. Moreover the discretion reserved to theTreasury for the date of release makes it easier tohandle this particular section of the National Debtthan the rest of the large volume of short-termdebt which the war is likely to leave behind it.The argument is, I suppose, that savings deferredin this way are more likely than normal savingsto be spent by their owners as soon as they arefree to do so. How far this will prove to be truein fact, I am not sure. It may be that the blockeddeposits will be instrumental in spreading the habitof small savings more widely, and that a largeproportion will be left undrawn as conservativelyas the existing Savings Bank deposits. But I amnot relying on this. Indeed, in so far as thedeposits are not spent when the time comes fortheir release the advantages to employment whichI have forecast will not mature. I am doing nomore than assume that steps can be taken toprevent the deposits from being spent faster thanthey can be replaced by new loans which wouldhave been required in any case for the relief orthe avoidance of unemployment.

If, however, public opinion still feels a diffi-culty here, it is one that can be met in a mannerwhich has advantages for its own sake. If the