REFLATION POLICY

Dominion, Volume 30, Issue 159, 2 April 1937, Page 6

REFLATION POLICY

New Deal in America

Justified

ECONOMIC RECOVERY

Progress Surveyed By British Counsellor By Telegraph.—l’ress Assn.— Copyright. ( Received April 2, 12.55 a.m.) London, April 1. “Economic statistics for the period from 1929 lo 1036 Support the general impression that America is on the 'eige of regaining in 1037, after a. cycle ot seven lean years, all the real economic prosiwrity she enjoyed in 1020, and in some directions of exceeding it, declares the report of iho British commercial counsellor at Washington, published by the Department of Overseas Trade. . In some directions, however ami notably in employment and public finance, the standards of 1020 have not yet been attained. The restoration ot foreign trade lags behind domestic trade. There is also danger of a speculative ami Inflationary boom, the report continues. “The New Deal policy of reflation by public spending, however, has been justified. Moreover, America will not return to the unfettered individualism which held sway before 1033.” The report pays a tribute to the United States of America for lowering high tariffs at a time when other nations are erecting new barriers. Britain is a large gainer from the return of American prosperity, though visible exports to America are still only half those of 1929.