THE CRISIS
[To the Editor of the SPECTATOR.] SIR,—In your article headed " The Crisis " in the issue of August 29th, you say that we have been consuming more than we produced," and that we were " on the brink of starvation because no one holds our credit good enough to sell us food." Do you seriously contend that that is true with wheat selling at about 20ks. per qr. and milk sellers faced with over-production and a big drop in prices ? Do you not know that according to the Board of Trade returns our " favourable " balance of trade, taking into account invisible receipts, for the nine years inclusive 1922-1930 was over 900 million pounds ? In other words we could have bought 900 million pounds'. worth more of foodstuffs and/or raw materials without borrowing. How can a creditor country, if it receives interest on foreign loans, keep and maintain a " favourable " balance ? It is quite clear that a debtor country if it pays interest on foreign loans must have a " favourable " balance. Can a creditor country have it both ways? Or is it the alarming truth that a very great part of foreign loans are lost for ever ?
Make no mistake about it, the real barrier to their repay- ment is the inability of the creditor country to receive, not the inability of the debtor country to pay. You, of course, know that international debts, except to a negligible extent, have to be settled in goods. Take Australia, for example, full of real wealth, yet " unable " to pay !
Yes, I know it is the economy of Bedlam, but you arc trying to perpetuate it when you advocate indiscriminate " Economy." So I am adopting your advice ; after a good many years as a regular subscriber I have cancelled my subscription to the Spectator with some regret. But what will you ? I am also proposing to cut down my personal and household expenses, to use less coal to help the miner, to do without clothes (not quite) to help the tailor and the wool grower, to drink water to help the tea grower and the brewer and so on, and I have no doubt my expenses can be got down to about 12 per week. But if many of us do this, shant I be ten sorts of fools if I expect milk consumption to go up, of which I produce 200
gallons daily ?—I am, Sir, &c., A. II. BROWN. Northwood Farm, North Hayling, Hants.
[We do not wish to see the circulation of money here brought to a standstill, and we hope that Mr. Brown will reconsider one of his economies, the last that we would recommend. —En. Spectator.]
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