In an address that he delivered before the Belfast Chamber of Commerce on October 24, Mr. McKenna chose his words more carefully. He argued strongly against deflation, but disclaimed any desire for inflation. "When," he said, "unemployment is greatly in excess of the normal we should abandon unhesitatingly the deflationary policy which is a cause of unemployment. But let me not be misunderstood. I do not say that a change in official policy would have the same far-reaching effect in this country as in America. Neither do I say that we should pursue a policy of monetary inflation. . . . The evils of such inflation are present to all our minds. . . . Personally I have no fear of a recurrence of monetary inflation. The high traditions of the Bank of England were never in safer keeping than in the hands of the present Governor, Mr. Norman. Neither the Prime Minister, now the Chancellor of the Exchequer, nor the Governor of the Bank of England is likely to countenance such a policy."
In a previous passage in the same address, Mr. McKenna had contended that in this country "deflation was actively continued until three months ago and still nominally stands as our official policy. . . . Our bank deposits to-day show a decline of 10 per cent. This
