Quiz Question

Here's an extract from a book I've just read. It amused and intrigued me because the passage was written in 1937, yet arguably it has a modern resonance in these troubled economic times.

But the question is – do you know which book it appeared in? I will be very impressed if anyone knows the answer – but I'll put you out of your misery tomorrow!

Here's the quote:

"Why, this, country is on the skids properly now! With your taxes boosted practically to the British level, what do you do with them? The British use theirs to balance their budget, set their nation in order, pay for their necessary current running expenses; you use it for political bribery of the most corrupt kind and still pile up deficits twice or more as large as the increased taxes."

Any ideas?