MR MACHIN'S ECONOMICS

Press, Volume LXXIII, Issue 22142, 12 July 1937, Page 7

MR MACHIN'S ECONOMICS

TO rHB EDITOa 0» TBI PRK33. Sir, —Mr Machin is not disposed to quarrel with the desirability of ending economic suffering. I therefore presume tnat he will agree that an objective which will meet with universal approval is the delivery to everyone of ail .the goods and servicethey desire, as and when required with the least effort to anyone, the only limit being their willingness to perform the small amount of work inherent in production. If he finds fault with this definition, I hope he will say so at once, as any further discussion on his part is wasted unless he defines clearly where he wants to go. If his criticism of Mr H. J. Kelliher's proposals for expanding buying power and stabilising the pound means anything, it means that the result of Labour control of finance will be no different from any previous control. Mr Machin will not quarrel with its orthodoxy, but the results will merely serve to show that Labour has failed. When, under another regime, orthodoxy fails, the flatearth economists can blame the catastrophic fall of prices overseas without, of course, mentioning the cause of the fall. Mr Machin's criticism of Labour finance would be more useful if he pointed out that the issue of all new money as debt, while it creates morebuying power on the way out, leads to the inevitable slump when the rate of flow to cancellation becomes greater as it must. He could also have point2d out that if Labour were sincere in its undertaking to increase buying power it could use its powers of control of the issue of money to reduce prices without reducing incomes. I am sure that, as a practical businessman, he would appreciate the advantages of doing business if he could sell every day at half-price and collect the other half from a source which did not come out of taxation. I am sure also that all his customers would realise that they were enjoying a real increase in buying power. I hone that before he questions the possibility of the he will agree with the desirability. It would be a pity to waste time showing him where it has been done if he were to turn round an' 1 say it would not be good for people to get things too easily. Such an argument is often used by people who detest dictatorships, but are not avers" to deciding what is good for others.— Yours, etc.. W. B. BRAY. July 10, 1937.