Show INFLATION or OF CURRENCY HAS HA MANY BACKERS Premier Baldwins Baldwin's Definite Definite Definite nite Statement He Will Not Start Move May Be Only T Temporary Blow TAX LIMITATION HAS NOW BEEN REACHED Present British Policy Imposes Im Im- Im- Im poses T Too Severe a Burden Burden Burden Bur Bur- den on People Is Contention Contention Contention Con Con- of Advocates S By P. P M. M j United Press Staff Correspondent LONDON Nov 17 Premier Pren-der Ba s Bakwin definite statement that he has n no intention of embarking on ona ona a a. poll policy y of Inflation has shelved but not killed the movement move move- i ment mont in this country in favor of currency inflation Sir Eric Geddes brilliant business businessman man financial expert economist and cabinet ex-cabinet minis minister er also famous amous as the wielder of the Geddes Economy A Ax AJo in government departments departments' Is strong for inflation as also are Pro Pro- Professor Professor fessor J J. M. M Keynes and a notable body of economists while the Federation Federation Federation Fed Fed- of British Industries the most power powerful ul industrial indu organization tion in in Britain is wholeheartedly behind the movement With the German mark and Russian Russian Russian Rus Rus- sian ruble dropping to the lowest depths of financial degradation and practically every leading currency in Europe debased by inflation inflation or or unlimited it It is at I first sight surprising that British financiers should consider the I question for one moment The reason rea rca I son however is that the movement Is more against deflation than a ual teal inflation No sane Englishman advocates unlimited note printing on continental scales but it felt in inmany inmany inmany many quarters that the present British policy of deflation imposes too great a burden on the direct tax or income tax payer as well wen as hampering industry HEROIC TAXATION Since the war successive British governments have by an absolutely heroic system of taxation been endeavoring endeavoring endeavoring en en- to bring the pound sterling sterling sterling ster ster- ling back to prewar standards as compared with the United States dollar now the monetary unit of the world The funding of the British Brit lInt I ish debt to America was part of this I policy and Britain's acceptance of the American AmeriC n gold standard for many years will inflict very great hardships on the British taxpayer payer for several generations It is Computed dom Com om- om that payment of the American Ameri Amen can debt imposes a burden of ot 1 1 pound per head of population an an- The advocates of taxation contend that the limit of taxation has been reached and the heavy a annual drain drainon on the national resources resources involving ing the virtual wastage of huge sun e extracted in taxation which should be returned to circulation circulation- is strangling industry and is mainly main main- ly responsible for the present unemployment unemployment unemployment problem Manufacturers who have to set aside such a large lange portion of their profits for taxes contend the cannot develop de- de elop their business or on increase production which means the they canI cannot cannot can can- I not provide employment The In Increased inI increased in- in I creased value of the pound sterling they say decreases the value of the articles therewith thus reducing output and employment employ employ- ment MEANS RISING PRICES Their opponents retort equally forcefully that Inflation would entail entail entail en en- tail the raising of food and other prices since a cheaper pound buys less and that increased production and employment would not compensate compensate com corn for the increased cost of living Further they point out that decrease in the value of the pound poundon on the scale suggested by the in inI in- in would entail something I like twelve millions sterling annually annually annually an an- being added to the American debt payments alone Reginald McKenna famous banker banken bank bank- er en and former chancellor of the E Exchequer Exchequer Ex Ex- chequer while not advocating Inflation Inflation in inflation In- In insists that deflation must cease as owing to heavy taxation it is impossible for England to re revert revert re- re vert vent altogether to pre war gold standards I Premier Baldwin who was reI re- re I for the American debt funding fund fund- ing declares that he is neither a nor an but butI I merely a non While denying de denying denying de- de nying officially at the recent Con party convention at Plymouth Plymouth Plymouth Ply Ply- mouth that he would sanction any inflation he was equally emphatic that there would be no further d de de- de In the premiers premier's vi view w things must remain as they are at present but many notable figures in inthe inthe inthe the political financial and Industrial world insist that this cannot be Something must be done they sa say to solve unemployment and only by accelerating the flow of money can the wheels of industry be set goIng goIng going go- go Ing again CABINET DIVIDED v There is la undoubtedly a section of the British cabinet which favors one being Sir Montague Barlow minister of labor who in a recent speech declared that the subject subject subject sub sub- was worthy worth of serious consideration consideration consideration consid- consid and acid in fact caused a financial financial fi- fi flutter by his remarks which were interpreted interpret d as a forecast of government policy Premier Baldwin's Baldwins Baldwins Baldwin's Baldwins Baldwin's Bald Bald- wins win's disavowal has silenced this sec section ion for a lI while but disagreements disagreements disagreements disagree disagree- ments in-a in cabinet do not promise stability and 1011 long political life While the leading lights of tho the Federation of British Industries are loud for lor Inflation Godfrey Cheeseman Cheeseman Cheeseman Cheese- Cheese man secretary of the National I Union of Manufacturers says sas bluntly blunt blunt- ly Whatever you do dont don't tinker with the currency rency which is ill the of our trade lie He favors a I protective tariff as the solution of unemployment a also so reduction of cx- cx 1 s by bv economies in go ment departments 3 When the threatened tion conies some comes some time Ume next next according to th the wiseacre wIseacres problem of Inflation vs dell deft will doubtless be bo revived |