(1) Though it is possible to contract credit by raising its price, if those responsible are prepared to risk panic, it is not always possible to expand it by lowering the price or even by the Bank of England's making purchases of securities, unless producers and traders can see their way to using it profitably; and in a country like England, so subject to foreign influences on her trade outlook, depression might easily arise that could not be cured by domestic monetary devices. And even when credit is expanded prices do not always rise, aS was seen in the years 1890 to 1895.
(2) The intervention of the Treasury involved by Mr. Keynes's proposals, opens a door to interference by the House of Commons in a sphere in which its activities are far from desirable.
The gold standard frees us from muddling with our money by politicians, has worked right well in the past and may do so again, whenever the politicians succeed in doing their proper job, of giving us peace and security and confidence and good-will.
