[To the Editor of the SPECTATOR.] SIR,—I cannot help wishing
that you had submitted your article, "Deflation Means Unemployment," to Dr. Walter Leaf of the Westminster Bank, as well as to Mr. Reginald McKenna. Dr. Leaf's article on the inflation fallacy, which appeared in the Times of January 30th, seems to me unanswer- able. What he said then (and even a year earlier) would happen in Germany has now happened. The Socialists, I know, do not let the ugly facts which we have seen in Russia spoil their pretty theories. But I trust that the Inflationists in this country will profit by the example of Germany and be wise in time.
Instead of debasing our coinage in the hope of remedying
unemployment I would suggest that we forgive Germany her debt if she on her side would make an arrangement with us for mutual Free Trade for the next twenty years. When two business houses have -pushed competition until they are both on the verge of bankruptcy, they sometimes find it wisdom to combine to prop each other up. Agree with thine adver- sary quickly whilst thou art in the way with him" is at times good business policy, as well as sound Christian ethics. And I feel sure that long before the expiry of twenty years neither side would wish to depart from this arrangement, and
that many other countries would follow our example. Until these middle walls of partition which the Protectionists have been raising all over the world to fabulous heights have been broken down business will never recover.—I am, Sir, &c.,
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