MONEY AND HOARDING

Evening Post, Volume CXX, Issue 42, 17 August 1935, Page 25

MONEY AND HOARDING

PROFESSOR J. Hilton, Professor of Industrial Relations al Cambridge University, addressed the annual congress of the British Federation of Master Printers. Speaking of world trade, he attributed much of the stagnation and unemployment to the tendency of people with any surplus, large or small, to prefer money-to goods. "They would rather hoard money," he continued, "pile up bank balances, than buy and use the goods and services that are capable of being made for their- enjoyment. The banks are chock-a-block with unused savings. The ultimate cause of world conditions is fear, lack of faith, and lack of confidence, and that fear expresses itself in a reluctance to buy. "We have reached a stage in our economic development at which we know very much more about the business of producing things than we know about the business of getting them demanded and used. Effort put into the increasing of demand is just now effort put where it is most needed and will yield the largest return. "The revival of the export trade is vastly important, because without it thousands of specialised workers will never again get back to the old employments, but if the world lunacy that brought international trade to this stagnation .should persist then we must accept the fact and make the best we can of it. What the export trade cannot regain the home trade must make good."