ABSTRACT
The State may take the resources directly by establishing control over industries; or it may secure them indirectly by increasing its monetary purchase of their products. Rising expenditure can be financed either by taxation or borrowing. There are therefore these three methods of industrial mobilisation: industrial control, taxation, and borrowing. Moreover an uncontrolled growth of money income is grossly inequitable—laying burdens upon those least able to bear them, and leaving a wealth of dangers to be faced in the period following the war. The burden of the war can be distributed between persons and between classes in a conscious, and democractically chosen, pattern of imposts. The Government may command the industrial resources of the nation by directing them to their war stations, or by buying them, either out of the proceeds of taxes, or of loans. These are the three methods of war finance open to us.
