International Currency Reform With the statesmen of Europe consulting together
at Geneva for the economic recovery of their continent, the moment might be ripe for the introduction of some measures to control the vagaries of gold-standard currencies. Lord D'Abernon's letter in The Times of Tuesday is therefore timely. In order to restore pur- chasing power and stimulate business, he suggests joint inflation back to the price level of 1926 or 1928, which might be carried out " by the great central banks of the world, by extensions of large amounts of credit to the respective Governments, for immediate expenditure on schemes of national development." Such suggestions are in line with a good deal of modern economic theory, and there is also a block of opinion among statesmen, including many young British politicians, which would be in favour of this or some similar plan. It is, unfor- tunately, a matter which will concern Governments rather than the banks. It is, therefore, political jealousies and weaknesses that would be likely to wreck such a scheme as financiers might approve.
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