" There are any number of possible ways of balancing
production and consumption. Some people to-day are disposed to seek the restoration of that balance by a contraction of world trade activities, by reduction of prices, diminution of wages, restriction of credit, and the slowing down of business generally, while currencies should remain firm and stable. Such people think that with production gradually reduced by the forced eliminaiion of businesses that are ruined and with consumption stimulated on the contrary by the reduction of production costs and the lower wages brought about by unemployment, the final result will be for good to come out of evil.
"Others think it is preferable to go on trying to achieve the balance between production and consumption in an expanding world trade by a rise of prices, increase in wages, expansion of credit, and development of business activity, while currencies should be allowed to weaken.
"Great Britain has been converted to this second policy ; she has abandoned the gold standard, and She hopes that her Production will be revived, thanks to the protection afforded by the depreciation of the pound, this being supplemented no 4tPubt by a rise of custom duties which will contribute to the increase of internal prices."—L'Informaiion (Paris), 3.10.31.
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