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ESSAYS IN PERSUASION

PART

may gradually get back to our gold standard,which, in spite of some defects and difficulties,has, as a matter of fact, worked well in the past.”

Sir Harry Goschen goes one better than Mr.Pease in a delightful passage which deserves tobe quoted in full:—

I cannot help thinking that there has been lately fartoo much irresponsible discussion as to the comparativeadvantages of Inflation and Deflation. Discussions ofthis kind can only breed suspicion in the minds of ourneighbours as to whether we shall adopt either of thesecourses, and, if so, which. I think we had better letmatters take their natural course.

Is it more appropriate to smile or to rage at theseartless sentiments? Best of all, perhaps, just toleave Sir Harry to take his natural course.

Leaving, then, these impeccable Spinsters,we come, in the speeches of Mr. Goodenoughand Mr. McKenna, to rational, even risque con-versation. In immediate policy there is alarge measure of agreement between them.They agree that monetary policy is capable ofdetermining the level of prices, that our destinyis therefore in our own hands, and that the rightcourse to pursue requires much thought anddiscussion. Mr. Goodenough, however, laysgreater stress on the bank-rate, and Mr.McKenna on the amount of the cash resourcesin the hands of the banks. They are opposedto any revival at the present time of the CunliffeCommittee’s policy of Deflation. They bothlook to internal conditions, and not to theforeign exchanges, as the criterion for expand-