[To the Editor of the SPECTATOR.] SIR,—I agree that the
question of unemployment is of great importance, but I gravely doubt whether the remedies which are proposed are more than palliatives, and I am afraid they may in the long run tend to aggravate the disease. The destruction of wealth by the War is no doubt the main cause of the present serious situation. The tendency to produce unemployment was already in existence prior to 1914, when all kinds of promises to give something for nothi g tended to undermine the character of the nation.
Having embarked on this dangerous course, the financial disturbance. produced by the War has placed the Government in serious straits in consequence of unemployment. Of the devices which were adopted to alleviate this, no doubt much the worst was the dole, for this was an indirect encourage- ment to persons not to look for work. The institution of works of utility, but not directly yielding a revenue, was somewhat less evil, but even this has serious drawbacks. ,
What is most urgently needed is the investment of capital in reproductive schemes. To make this possible the rehabilita*. tion of markets at borne and abroad is most necessary. It seems to me that to tamper with the currency is the worst way to accomplish this most desirable end. We want as rapidly as possible to get back to sound measures of value,. at home and abroad. Every effort should be made to get the Currency note on to a gold basis. " Inflation " is rather a symptom than a disease. To treat the symptom does not seem to me a sound policy. On the other hand, having got into the present trouble, any strong attempt to remove the symptoms would probably aggravate the evil. In substance, then, I say in reply to the article in the Spectator—Avoid further Inflation as you would the devil—Lose no opportunity for prudent Deflation—Do as little as is possible in the way of Public Works—Use every endeavour to re-establish Inter- national Trade, and beg the Government not to meddle with Commerce or to fuddle with Tariffs. Preserve at all costs . what has well been called the good will of the British pound sterling.—I am, Sir, &c., HUGH BELL, Roun ton Grange, Northallerton.
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