Note 36 — Chapter III · THE THEORY OF MONEY AND OF THE FOREIGN EXCHANGES

Dr. R. Estcourt, criticising one of my articles in The Annalist for June 12, 1922, writes: “The arrangement would not last for any appreciable period unless, as a preliminary, the Governments took the necessary steps to balance their budgets. If that were done, the so-called stabilisation speedily would become unnecessary; exchange would stabilise itself at pre-war rates.” This passage puts boldly an opinion which is widely held.