After all, we have had no examination of financial policy
since the famous Cunliffe Committee, whose- policy still dominates the situation, though the condi- tions on which it was based have completely changed. Naturally Sir Eric Geddes is no more willing than any other sane person to embark on a policy of inflation for its own sake. But he sees very clearly the commercial disasters which the persistent deflation of the Bank of England is leading us to, and is not afraid to endorse the opinion of Mr. McKenna that some measure of inflation is necessary as a corrective before that stabilization, which is, of course, the ultimate objective, is reached :- " In internal trade a policy of continuous deflation means a rapid and continuous fall in prices, dislocation of business, an increase in the burden of the internal debt, and continuous effort to adjust wages and costs to a constantly falling level of prices. This burden can be alleviated by a policy less exclusively directed to the improve- ment of our exchange with America, and concentrating mere on, the restoration of stable business conditions."
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