FIGHTING RISING PRICES
"Sin,---May I cordially stipport Mr, T. B Waddicor's realistic proposals against rising prices by means of direct action through the coal trade? As he points out, this could favourably benefit almost every fac- tor in the cost of living and our export power.
He makes the suggestion that, say, £50 million or £100 million should be created' and raised as a special 'fund' by the Government, clearly from taxation.
But coal, like other basic commodities, steel, tex- tiles, etc., is part of the annual 'production' that leads to still further 'production.' Why therefore, should not the Government 'create' this fund by simply issuing the appropriate Treasury or Bank Notes, both debt-free and interest-free?
This 'proflation,' balancing with 'production,' was actually achieved, in a rough and ready fashion, by Guernsey after the Napoleonic Wars. By this means, the island reorganised its harbour, road system and schools. When this was achieved, the Guernsey notes enabled the circulation of increased consumer goods that naturally followed the capital development.
The same method was used by Sir Daniel Hamil- ton to reclaim and colonise the derelict settlement of Gosaba, in Eastern Bengal, for a prosperous population of 12,000. Sir Daniel was a successful Calcutta merchant and a member of the Viceroy's Council. A brief account of his achievement ap- peared in the Spectator (March 9, 1945).
The present technique and practice of 'deficit finance' needs only to be converted into 'debt-free profiation' to make everyboiy happy
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