56 HOW TO PAY FOR THE WAR

from the market, a significant rise in prices cannotbe avoided, even though there is no runaway-inflation. An attempt on the part of the Govern-ment to keep down the price level of a range ofarticles in general consumption will require,sooner or later, subsidies on a scale which wouldimpair still further the equilibrium of the budget.(The Chancellor of the Exchequer stated recentlythat the tentative moves in this direction alreadymade are costing the Treasury £1,000,000 a week).And a significant rise in the cost of living is certainto be followed by a more or less successful agita-tion for higher wages.

If, on the other hand, the problem is tackledindirectly by withdrawing purchasing power, therewill be no reason why the vicious process shouldbe started by prices being forced up at the demandend. There might be certain subsidies in partcompensation for price increases due to the highercost of imports and some rise of wages for gradesof labour which already had a special claimfor an improvement. But the main reason forthe development of an acute wages problemwould have been removed, and we could safelyleave the sequel to the common-sense and publicspirit of trade unionists as to what is or is notreasonable in time of war.

Nevertheless, if a scheme for deferment of payis adopted, this would make practicable a furthermeasure which might considerably ease the wagesproblem. For with an adequate proportion ofconsumers' purchasing power withdrawn, the riskand expense of a deliberate policy to keep down