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suggested in our our Interim Report the following additional reductions:

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We wish to point out, however, that this Report is both interim and preliminary, and that, as we have stated, no account has been taken of the possible re-casting of the Navy Estimates as the result of the Washington Conference, nor of any reductions in the Army Estimates resulting from a review by the Government of our military requirements at home and abroad.

In handing you this preliminary Report, we wish to state that we are proceeding with our examination of the ninety-six Votes remaining, which, with the Irish Departments, represent £138,000,000, and will report on them to you with as little delay as possible, as also on the various questions referred to, but not dealt with, in this Report.

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COMMITTEE ON NATIONAL EXPENDITURE.

SECOND INTERIM REPORT

OF

COMMITTEE

ON

NATIONAL EXPENDITURE.

Presented to Parliament by Command of His Majesty.

mon droit

LONDON:

PRINTED AND PUBLISHED BY

HIS MAJESTY'S STATIONERY OFFICE.

To be purchased through any Bookseller or directly from
H.M. STATIONERY OFFICE at the following addresses:
IMPERIAL HOUSE, KINGSWAY, LONDON, W.Č.2, and
28, ABINGDON STREET, LONDON, S.W.1;

37. PETER STREET, MANCHESTER;

1, ST. ANDREW'S CRESCENT, CARDIFF;

23, FORTH STREET, EDINBURGH;

or from EASON & SON, LTD., 40 & 41, LOWER SACKVILLE STREET, DUBLIN.

[Cmd. 1582]. Price 3s. Net.

1922.

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The cost of printing and publishing this Report is estimated

by the Stationery Office at £135.

SECOND INTERIM REPORT OF THE

COMMITTEE ON NATIONAL EXPENDITURE.

To the Right Hon. Sir ROBERT S. HORNE,

SIR,

G.B.E., K.C., M.P.,

Chancellor of the Exchequer.

We beg to submit our Second Interim Report, which, as in the case of our previous Report, we would ask you to consider as both interim and preliminary. In it we deal with a number of Departments in groups as set out below, not selected on account of the large amount of money involved, but because of administrative urgency and convenience.

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The provisional Estimates for 1922/23 remitted to us, after making the reductions of £75,000,000 offered by the Departments in their provisional Estimates in July last, amounted to £528,000,000 for ordinary Supply Services. The Services covered by our first Interim Report amounted to £390,000,000,

and this, our second Interim Report accounts for a further £18,000,000. Irish Irish Votes, which we are not examining, account for a further £17,500,000. There remain for examination 60 Votes, accounting for the balance of approximately £100,000,000 estimated expenditure on Ordinary Supply Services, and 6 Votes for "Aftermath Services" which come under the heading of "Special Expenditure.'

We have, generally speaking, followed the same process of study of the estimates and consultation with the Treasury and with the Ministers and Officials of the Departments dealt with, and, as in our first Interim Report, we have stated in some detail where we think economies can be effected, and have arrived at conclusions, which we think should be communicated to the Departments as to the limits within which their Estimates should be framed. We wish, however, to reiterate that the details we give are not exhaustive, and that our recommendations give the minimum economies which, in our judgment, should be effected in the various Departments.

We take this opportunity of explaining that we realise that some of our recommendations relate to classes of expenditure which will have many advocates. Powerful arguments can no doubt be urged for such expenditure. But in present circumstances only one overriding comment is necessary: Has the nation the means at the present time to continue incurring it? " To that question your remit to us is a full and complete answer. We are invited to recommend reductions in expenditure because they are absolutely necessary to keep our outgoings at a level with our income. Our remit is not how best to spend money from an overflowing Exchequer; but how, with the least harm, to bring expenditure within the limits of our income.

We will now proceed to deal with the Trade Group, and seriatim with the other Groups as set out above.

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