OPPORTUNITIES FOR , INFLATION [To the Editor of Titis SPECTATOR.]
8134—Although the Irish. Yamada dispute may not come before the Economic Conference .in the same way as War Debts due now to America, yet the minor matter perhaps could be made a means of experiment to meet both difficulties by inflation.
The capital now funded for America stands at about £805,000,000, while Land Annuities by themselves represent a capital of £76,000,000 ; and both are terminable annuities ; other details may bring it to £92,000,000, and thus one represents one-tenth of the other. Both at home, and even more in America, some valid excuse for inflation is now required, and this would . not of necessity raise any prices, should a corresponding amount of goods and services come into circulation, so that the inflation would be only relative, not absolute. And such a consequence is quite possible.
Actual suggestions appear to have been made that Ireland should raise a Loan and pay down between twenty and thirty millions, while if England was also to inflate by about fifty millions, at least some eighty millions would thus be available to commute all the Land Annuities and leave a balance. If such inflation did lead to higher prices as some form of indirect. taxation, Ireland with her linked currency would have to bear her own share of it, yet if prices did not rise in proportion with increased trade, nobody would suffer by any such experiment.
America, it is, true, does not form part of the Mother Country, yet she might agree to allow any such special inflation to pay off her own debt, to be legal tender in her awn country as it would be here, either in the shape of dollars, sterling or both, which would ease the situation, give her the inflation which she needs, and also help to link dollars with sterling in the future, while she would get all her money in full and end the business.-1 am, Sir, &c., Newtown Park, Co. Dublin. JOHN H. BURTON.
Previous page
