AIM AT TRADE REVIVAL.

Press, Volume LXVIII, Issue 20647, 9 September 1932, Page 11

AIM AT TRADE REVIVAL.

BRITISH BANKER'S VIEW. INFLATION FAVOURED. (rKITED PRESS ASSOCIATION—BI ELICTWO TZLEOAapH—COPHtKSHT.) LONDON, September 7. The Bank of England should issue notes free, Professor J. E. Bellerby (Brunner Professor of Economic Science at tho University of Liverpool) told the British Association. ' Money must be given to the spendthrift', who would rush to the counters to spend it, in order to ensure a trade revival. The only hope for recovery was to raise wholesale prices 30 per cent, in two years. One way would be to subsidise the destitutes. AlO per cent, increase should. be made in unemployment pensions and State allowances. Professor -Bellerby continued: "Inflation is the remedy for our present world difficulties, but we cannot inflate until we find the bridge between the banks and the public. It would cost tho Bank of England nothing, in certain circumstances, if it presented notes gratia to the Government. Such notes could be used to lower income tax, and thus release spending power, but it would be useless if the money were passed to taxpayers, who were merely safety-seekers. "It is essential to encourage spendthrifts. The awful paradox confronts the civilised world that in order to be saved it must spend. If Britain and the United States reached an agreement regarding inflation, then the whole world in the sterling area, even France, would have to follow their policy." In a paragraph coincident with Professor Bellerby's speech, the financial editor of the "Evening Standard" says: "When the Et. Hon. Montagu C. Norman, Governor of the Bank of England, returns from Amoricrj ho must be urged to join the movement for the expansion of credit. He has seen firsthand how it put new life into American markets. No longer must he play the 'Old Lady of ' Threadneedle Street,' and tremble at the thought of inflation. A reversal of the crippling policy of deflation is imperative if the rising markets are to continue to benefit our trade."

SIGNS OF CONFIDENCE. GREAT IN/TEREST IN BRITAIN. (BRITISH OPPICIAE WIBELESS.) RUGBY, September 7. Tho greatest interest is displayed by the newspapers in what is regarded in some quarters as the world-wide signs of growing trade confidence. Under the stimulus of a further rise in primary commodities shares in commercial and industrial companies on tho London Stock Exchango improved yesterday, but the markets opened this morning with a quiet and rather irregular trend, influenced to a large extent by tho overnight reaction on Wall Street. "The Times" points out that tho return of the world to a state of prosperity is still dependent upon a number of tendencies of a political and financial character, that have yet to be dealt with. There must be material modification of tho present artificial restriction's, such as excessive tariffs, import quotas, and embargoes on the transfer of currencies.