1937-03-16 — Page 10

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THE CHINA.

The China Mail

Ninety-Second Year of Publication SA Wyndham Street, Hong

Telephone 20022. London Office:

Notice To Contributors.

MARCH 16, 1937.

standing-debt for debt is rely credit looked at from the other side. New capital goods would be financed not merely out of real savings but out of bank credit. An excessive volume of cheap credit would certainly lead to overexpansion of productive

7, Garrick Street, London, W.C.2 facilities in wrong directions.

Many authorities believe that it was precisely the cheap-money policies of 1922 to 1929, both in All communications intended for England and the United States, publication should I be addressed to that made possible the boom and the Editor, and be accompanied by the consequent slump.

the Writer's Name and Address,

not necessarily for insertion

as a guarantee of good faith.

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but

Mr. Keynes, in short, believes that the Government can control interest rates more wisely than the ordinary forces of supply and demand can. Governments have frequently believed that, re- garding not only the price of money but of hundreds of other commodities. The results of their type of interference, however, Hong Kong, Tuesday, March 16, 1937. have not been such as to encour- age the belief in the minds of impartial observers.

-Postage, Abroad Extra

'CURES' FOR SLUMPS

Three articles on "How to Another Beauty Avoid a Slump," written by J. M

That fatal affinity which has

Keynes and published in "The Times," have provoked some com-been so often demonstrated be ment. While the artides deal tween an interest in foreign af- particularly with the situation fairs and a fondness for using in Great Britain, the general prin- long words of Latin or Greek ciples laid down are, of course, origin seems to have been ele- intended for universal applica-gantly displayed once more in the assurance that when Herr von tion.

Mr. Keynes argues that it is Ribbentrop went to the Foreign time we began to think of pre- Office to talk about the colonial treatment of that venting the kind of boom that question his would lead to another smash subject is said to have been With this end in mind, he would peripheral" That is an obvious- finance Britain's new armamenty boss word which ought to be programme largely out of taxa immediately admitted into the tion; he would favour a tempor- sacred company of terms like ary rebate on tariffs "wherever "unilateral," "para-military" (a this could be done without gorgeous hybrid), or "global" throwing British resources out of A "periphery" itself is strict- employment; he would welcome by the line bounding a rounded imports at present, even though surface, but in a figurative sense they result in an adverse balance (and where would foreign affairs of trade. Finally, he would set up be if the figurative and the fan- a Government board, not to ciful were removed from the build public works now, but to language of the experts?) it. have a considered programme means, according to the diction- of sound, useful projects ready ary, "the outward bends of a as soon as they became neces- thing as distinguished from its sary again.

internal region or centre." Herr von Ribbentrop, therefore, in his All but the last of these pro- posals would doubtless be widely peripheral approach to the co- endorsed by orthodox" econom-lonial question may be said to have dallied daintily on the out- ists; and if the last were oppos- ed, it would be less because of skirts of the subject instead of the basic principle involved than getting down to what the vulgar because of doubts regarding its call brass tacks. Or, like the practical workings. Mr. Keynes gentleman in the "Bab Ballads," contends that "the boom, not the

He argued high, he argued slump, is the right time for ans-

low, terity at the Treasury." Per- haps; but it is during the slumps that the Treasury has little money and during the booms that A really first-class peripheral it has much. To carry out this performer can run his own rings programme as Mr. Keynes con right round a subject without templates, statesmen would have getting anywhere near what the to run counter to the state of the dictionary calls "its internal re- Treasury, counter to the domin-gion or centre." ant psychology of the country,

counter almost to the frailties of

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He also argued round about

him.

There is still another recom- Hats Off To mendation, however, concerning |

which Mr. Keynes is likely to win "Peripheral"! much less support from his eco-

nomic colleagues. This is that It would, however, be a great "dear" money must be avoided shame if the Foreign Office were we would hell-fire." His allowed to monopolise such a fine gument on this point is involv- and fairylike term as peripheral. ed, not altogether clear, and far Somebody ought to tell Lord about it. It could ncing. What con- Rotherme

ey is itself a then be worked into his latest for bigger and better opinion. What M

imate really urging is that

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