UNEMPLOYMENT AND MONETARY POLICY [To the Editor of the SPECTATOR.]
SIR,—Unemployment is, I venture to state, the question of the day. There is no one remedy for it, but peace abroad and industrial peace at home, economy in administration, sound finance and reform where practicable, are all contributory causes for reducing it. .When we have a balance of good things done, such as the Dawes Solieme for Central Europe, and other reconstructive works carried out, restoration of the Gold Standard, and real economy in administration, then we may expect trade to improve and unemployment to decline.
A sound monetary policy is the foundation of all improve- ment, and an early declaration of policy has now been promised by the Government on this most important subject. No doubt palliatives in the shape of public works are necessary, and we cannot altogether abolish the dole, but in the main we live in this country by our foreign trade. Our coal exports have gone down by twenty million tons, and our foreign trade languishes for two reasons, high prices and a reduced foreign demand. A sound financial policy—namely, the restoration of the Gold Standard—will enable us to buy our cotton and food cheaper, and reduce the interest charge on our debt to America. This will enable us to manufacture at a lower level of prices, and our example being followed by a number of other countries will stimulate the foreign demand for our manufactures.
In the debate in the House of Commons Mr. Snowden is reported as having stated that there has been too rapid deflation and that this had led to increased unemployment. There has been a decrease of £79,000,000 from the highest point reached in the issue of currency notes, but this decrease took place subsequent to the fall in prices. In 1923 there. was no deflation of the currency and last year also there was no reduction in the issue of currency notes. In fact there was a slight increase. Unemployment has not apparently been reduced but shows an increase. When the restoration of specie payments and a free market in gold have been re-established I believe national credit will improve and a great expansion in trade and commerce will result, and thus greatly reduce unemployment. am, Sir, &c.,
D. M; MASON.
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