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is that it is relieved from the necessity
(inherent in the old system of these Funds)
of contributing 6 per cent compound interest
on surpluses, should such exist, which had the
effect of continuously increasing the surpluses
and of throwing on the Government a larger
burden than was reasonable or necessary. On
the other hand if there were at any time a
deficit, the fund system would tend to in-
crease that deficit, since the Government
contribution would then be calculated on a
balance smaller than that needed to meet the
future liabilities of the fund, and the
Government contribution would therefore be
less than the amount required to maintain an
equilibrium between the assets and liabilities.
Thus the normal condition of the fund must be
one of more or less unstable equilibrium,
and this unsatisfactory condition would be
intensified