chapter  8
20 Pages


I IN concluding Iny argument I think it is desirable to give a fuller and more formal reply to two lines of criticism \vhich are likely to block its reception in many minds.

It may be said that this is a most inopportune time to press the claim of a doctrine of under-consumption or over-saving. The present depression and unemployment require and admit no such explanation. They are manifestly due to the destruction of capital resources and of tIle productive power of labour from the war and the social disorders which ensued in Central Europe, Russia and the 11ear East, the breakdown of the financial system by which commerce betweell nations, and even within the several countries, is normally conducted, deficiencies in the machinery of transport, protective tariffs, embargoes and other obstacles to trade, the cost and difficulty of getting the fabric of industry from a war-basis on to a peacebasis, political insecurity and related wastes of arma.. ments, higll taxation, war debts, reparations, and the aggregate result of all these conditions in paralysing business confidence and the plans and activities

which require a reliable monetary system. In the presence of these patent sources of depression, it may be said" why sumnl0n a large essentially speculative explanation which, even if applicable to ordinary cyclical depressions, cannot here apply?