INFLATION MOVE

Taranaki Daily News, 4 June 1935, Page 5

INFLATION MOVE

WILL IT CROSS THE ATLANTIC.? “A DANGEROUS STIMULANT,” (Air Mail-Special to News.) London, May. 2. The city is beginning to pay considerable attention to the persistent statements of American financial publicists that an inflationary cycle has already set in in the United States. If this is really so, though, the process may be slow in starting, it may gather momentum with startling rapidity in the near future. The movement, moreover, is hardly likely to be confined to the other side of the Atlantic. ■ In the hands of our present administrators there is no cause to fear any departure from the existing sound basis of national finance. It cannot be Overlooked, however, that large sections of • our industry might extend,a hearty welcome to inflation in its early stages as being calculated to offset the burden of taxation by increasing profits and output. It is to be hoped that desire for the stimulant will not bo allowed to outweigh the knowledge of its after effects. British industrialists, as much as British statesmen, are too soberminded to be in great temptation of resorting to such a dangerous intoxicant.