Of the digressions which are often the most interesting things
in a Budget speech, perhaps the most remarkable was Mr. Lloyd George's prophecy as to the prospects of a boom in trade. According to the views of his advisers and in spite of the coal strike, his information is to the effect that the conditions throughout the world appear to be exceptionally healthy. "The production of gold has been during the last few years abnormal, and that, in spite of the criticisms of an hon. friend, has had a great deal of effect in greasing the wheels of commerce." No doubt it has, but we must never forget that prosperity due to this cause is to a very large extent an imaginary prosperity. Owing to the inflation of prices people appear to be richer, but in reality they are no better off than when the whole range of prices was at a lower level. At the same time, rising markets do undoubtedly make for a commercial self-confidence which is stimulating, and calls forth an extra energy which is a real gain. When everybody is striving to utilize what seems to him a golden opportunity, a genuine increase of the world's wealth may be the result. Still, when all is said and done the fact remains that stimulation due to champagne always leads to reaction.
