There is, we are glad to note, a growing body
of financial opinion which takes this view. It has the powerful support of
Mr. McKenna, who put the case with clarity and vividness :— "The declared policy ef monetary deflation is a public warning to the trader that ho must be prepared to lose on every contract for the future delivery of goods. Owing to the general fall in prices the market price of the goods when he gets them will be lower than at the timo when his contract was made. A policy of gradual monetary deflation, but deflation so guarded as not to interfere with production, is a policy impossible of execution."
As against this there is undoubtedly a portion of the City which still supports the Cunliffe policy, as was emphasized by Sir Felix Schuster in a recent speech, although even he warned the Government against roo rapid deflation.
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