Ill

THE RETURN TO GOLD

279

Compared with any alternative which is opento us, this measure is unique in that it would atthe same time relieve the pressing problems ofthe Budget and restore business confidence. Ido not believe that a wise and prudent Budgetcan be framed to-day without recourse to arevenue tariff. But this is not its only advan-tage. In so far as it leads to the substitutionof home-produced goods for goods previouslyimported, it will increase employment in thiscountry. At the same time, by relieving thepressure on the balance of trade it will provide amuch-needed margin to pay for the additionalimports which a policy of expansion will requireand to finance loans by London to necessitousdebtor countries. In these ways, the buyingpower which we take away from the rest of theworld by restricting certain imports we shallrestore to it with the other hand. Somefanatical Free Traders might allege that theadverse effect of import duties on our exportswould neutralise all this; but it would not betrue.

Free Traders may, consistently with theirfaith, regard a revenue tariff as our iron ration,which can be used once only in emergency.The emergency has arrived. Under cover ofthe breathing space and the margin of financialstrength thus afforded us, we could frame apolicy and a plan, both domestic and inter-national, for marching to the assault against thespirit of contractionism and fear.

If, on the other hand, Free Traders reject