point, that the war has taught a great many people who never saved at
all to save a good deal. It was estimated before the war that we in
this country were saving about four hundred millions a year. This
figure was necessarily a guess, and must be taken for what it is
worth. There can be no doubt that the amount of real saving now in
progress, voluntary, owing to the patriotic effort of people who think
they ought to restrict their own consumption so that the needs of
our fighters may be provided, and enforced through the action of the
Government in taking taxes and inflating the currency, is very much
greater than it was before the war; probably at least twice as much
when all allowance has been made for depreciation of the currency.
Some people think that this saving lesson will have been learned, will
have become a habit, will continue and will grow. If so, if people
save a larger proportion of their income than they did before, and
if the total output of goods is increased, as it easily may be, it
becomes at once evident that there is a possibility of a freer supply
of capital for industry than has ever been seen. But in looking at
this hopeful and optimistic picture, we must never forget that it can
only be painted by those who are prepared to leave out of the canvas
all the danger of industrial strife and dislocation, and all the
danger of reaction to the old habits of luxurious spending which are
so strong a possibility in the other direction. The war has shown us
how we can, if we like, increase production, reduce consumption, and
so have a larger margin than ever before to be put into providing
capital for industry. Whether we really have learned these lessons and
will apply them remains to be seen.

There is also a possibility that some people may recognise that saving
money and applying it to the re-equipment of the world for peace
industry is a patriotically praiseworthy object not less than saving