ABSTRACT
In the modern world where a willingness to assume risk is an essential element of economic life, the process of investment is seriously affected by the reduction of profits due to a disparity between prices and costs of production. The economic glorification of investment and the economic depreciation of hoarding have both been due to the neglect of the consideration of the operation of money by economists. Economic Science has lost its certainty as to both the moral and material superiority of investment over hoarding for the storage of savings. Both forms of storing savings—hoarding and investment—are also equally justifiable from a purely business point of view. The official justification of the growing doubts in the minds of the public as to the superiority of investment over hoarding was afforded by the publication of the Cunliffe Interim Report of 1918.
