5. The principal danger at the present time is lack of confidence. There is mistrust of the Allies and mistrust of the home Government particularly its finances, The Government, with the aid of Allied loans, is attempting the difficult task of checking inflation, which has already gone a very long way. The cost of living, which principally affects the Government officials and professional classes, has risen seriously. 6. The Generals also cannot be regarded with much confidence. One general officer.