Thoughts For The Times
Cadbk and Effect. During the war the whole world violated economic principles, centering ail thought and effort upon winning the war. Credit was created without stint, and interest rates kept artificially low. Instead of restricting private consumption in order to release productive capacity to the government and to supply the Government with real capital we undertook to provide the government with purchasing power through the private use of hank credit on a great scale. We borrowed as individuals and turned tbe proceeds over to tbe government. Bri.bnbly no other course was practicable, ly t this inflation of credit resulted in the great rise of wages and prices. We got away from all standards of -value. Finally, when an effort was made by the Bankers to stem the tide of inflation, interest rates inevitably went up and have remained up.
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Hokitika Guardian, 30 August 1921, Page 2
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143Thoughts For The Times Hokitika Guardian, 30 August 1921, Page 2
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