11 MAY 1929, Page 34


Assuming, on the-other hand, that Labour came into koffice with sufficient strength to carry out its pro ramme, attention would probably be quickly directed to the possibility of a general rise in the cost of living, and lest I should be accused of employing this argument as a kind of election point, let me hasten to add that I do not think that this increased cost of living would for some time to come press upon the large. mass of the wage- earning community as wages would probably be adjusted in accordance with the requirements of the situation. There is, however; so much in the financial creed , Labour tending directly towards inflation that rentier class—that is the class relying largely u income from investments—might well feel the necess. for seeking directions where the investment giave•a high yield. An individual dependent upon his income fro investments has no power to expand that income proportion to a rise in the cost of living other than h , seeking securities giving a higher yield, and consequent) the fears of a financial policy involving a rise in pri would probably inspire a selling movement in the bet class of stocks.