[To the Editor of the SPECTATOR.] Sm,—It seems clear from
the recent correspondence in your columns and elsewhere that the policy of active deflation or artificial restriction of purchasing power, officially adopted two and a-half years ago and now, we arc told, discarded, has been a powerful contributory cause of the present unemployment. If your action and that of Mr. McKenna have secured a public recognition of this side of the question, which has been too much neglected by those preoccupied mainly by the condition of the dollar exchange, I take it that your object will have been attained. If the choice lies between two policies, one of which necessarily produces instability of prices in Great Britain and consequent stagna- tion in the home market, then I, for one, have no hesitation in agreeing with the contentions of your article.
The attempt to impute to you a desire for inflation seems to me both unwarranted and disingenuous; and it certainly comes oddly from those who are working for the protection of home industries, which, after all, is only another artificial method of raising prices.—I am, Sir, &c.,
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