3 NOVEMBER 1923, Page 13

[To the Editor of the SPECTATOR.] SIR,—I most cordially agree

with your article. Inflation is bad, but sudden deflation is ruin. The money to pay fur the War was largely borrowed on paper, and the burden of the debt will be largely increased if it is made into a gold debt, as happened after the Napoleonic Wars. I remember Lord Balfour once saying that nothing is so benumbing to the springs of industry as a constant time of falling prices, or words to that effect. I am with Mr. McKenna in this.— Panshanger, Hertford.