* * * *
THE INVARIABLE STANDARD AND MEASURE OF VALUE.
This is the title of a new book written by Mr. J. Taylor Peddie and published by P. S. King and Son, Limited. It is a work complementary to a previous book entitled The Flaw in the Economic System. Mr. Peddie is among those who endeavour to trace the depression in some our industries to the- operations of the Gold Standard, and in this book the author maintains that a new and better standard can be obtained. In the early part of the book, and, indeed, running throughout the volume, is a kind of suggestion that the invariable standard and measure of value must have for its basis production power, both actual and potential, if I follow Mr. Peddie aright. It is just this part of the book, however, which I believe the general reader will, with me, find great difficulty in following and discovering precisely what is to be the basis of Mr Peddie's new " invariable standard and measure of value." In the last chapter, however, which, in my opinion, is the best in the book, the author summarizes his points, and I do not think I shall be doing him an injustice, and, indeed, I venture to think I may be even doing him a service, by still further condensing his summary when I say that, among other things he pleads for greater elasticity in currency and credit and also for a certain rationing of credit. As regards the first of these points, Mr. Peddie evidently wishes the bill of exchange to be used more freely as a basis of credit expansion, and on that particular point there will be others who are in agreement with him. Then as regards the rationing of credit, the author has evidently been impressed by the fact that periodically Stock Exchange and other speculations make unduly exhaustive demands upon credit and he seeks to discover some way by which credit might be apportioned so that the mere speculator gets a reduced share in the supply available, especially when there is any chance of trade suffering as a consequence of the demands of the speculator for loanable capital. Here, again, many will be in sympathy with Mr. Peddie, but will probably maintain that to fetter in any way the free flow of loanable capital in the directions where at a given moment it finds the greatest attraction both by way of interest and security, might be to do more harm than good.
A. W. K.
Previous page
