SIR,-Fr. Crane tells us that "the printing presses" (in Cuba) "have reduced the value of the country's currency to a fraction of its former self."
The same could be said of nearly every other country since the war. The Cuban authorities have, it seems. created too much paper money (notes and current account deposits). Fr, Crane seems to imply that this is an injustice. If so, I agree with him.
Now, what is meant (in justice) by an excessive expansion of money?
Over the past 21 years the banks of the major trading nations have been allowed or forced by this Government to expand their money supplies more than fourfold in terms of U.S. dollars (a good deal more in terms of their own currencies).
I say that this is too much: that the effect may soon be seen in an economic collapse of appalling magnitude-as happened in similar circumstances in the 1930's.
Under the gold standard, Britain's money supply per head was increased about three-fold in 60 years by new creations. I contend that this was excessive (in justice) and that the effect was enrichment of the rich at the expense of their poorer fellow citizens, at the expense of the needy agricultural peoples of the world. Another effect was industrial unrest.
I suggest tentatively that justice requires that the money supply should rise at the same rate as the population. Am I right? I have found it impossible to find anybody who will do me the courtesy of examining my arguments. 1 have found nobody who will take the trouble to study the matter.
John F. L. Bray, M.A. (Olen), Ph.D. Econ. (London) 132 Abbots Road, Abbots Langley, Herts.