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ESSAYS IN PERSUASION

PART

attention to the chance consequences of thejourney to individual groups.

The gold standard, with its dependence onpure chance, its faith in “automatic adjust-ments,” and its general regardlessness of socialdetail, is an essential emblem and idol of thosewho sit in the top tier of the machine. I thinkthat they are immensely rash in their regardless-ness, in their vague optimism and comfortablebelief that nothing really serious ever happens.Nine times out of ten, nothing really seriousdoes happen—merely a little distress to indi-viduals or to groups. But we run a risk of thetenth time (and are stupid into the bargain) ifwe continue to apply the principles of anEconomics which was worked out on the hypo-theses of laissez-faire and free competition to asociety which is rapidly abandoning these hypo-theses.

(iii) Is there a Remedy?

The monetary policy announced in the Bud-get (of 1925) being the real source of our in-dustrial troubles, it is impossible to recommendany truly satisfactory course except its reversal.Nevertheless, amongst the alternatives still opento this Government, some courses are betterthan others.

One course is to pursue the so-called “sound”policy vigorously, with the object of bringingabout “the fundamental adjustments” in theorthodox way by further restricting credit andraising the bank-rate in the autumn if necessary,