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[Continued 7. Tt is rotail prices which affect the poor con- P Yeu, it is retail priow that determine the of purchases covered by the consumers’ outlay. Chairman. Hawtrey. We are much obliged to you, Me. (The Witness withdrew.) (Adjourned until Thursday, Ist May, 1090, at 4.80 p.m.) jam submitted by Mr, Hawtrey on Remedies for Unemployment will be found at the ‘end of Volume IE TWENTY-FOURTH DAY. Thursday, 1st May, 1930, ‘The Rt. Hon, LORD MACMILLAN, Chairman, ‘THOMAS ALLEN. ie Rt, Hon. LORD BRADBURY, @.C-B. Hon. K. H. BRAND, C.MLG. it. B, GREGORY, D.Sc. J. M, KEYNES, O.B. Major Curzon Huon Dovetas, ATEMENT OF EVIDENCE SUBMITTED BY MAJOR DOUGLAS. Svaouany, "4, That the primary caase of the industrial do- mn and consequent unrect ig Gnancial. It is “die to lack of power to buy, not due to lack of either Power or will to produce.” That is to eay it is not “in the main administrative, nor due to the technical Fdationship botwoon employers and employed, but is “Goo to. money ‘relationships which are’ governed Primarily by ‘tho financial systom, and socondarily By financial “policy. Such remedies "a5 rationalisation” of “nationalisation” do not ouch the fandamental problem. 2, That while. th policy puraved ‘edit iseue probably controle tho general rate of fy ‘bo. the tain cause of the Aiforential rate of stonomic proyperity, as Detwoon tne nation and another, the fundamental defect of he financial system, at operated, ie mathomaticel Bot politcal. ‘The existing Snancal system fe not 8 formect reflction of eoonomie fact, ar i should bo, ‘tnd is both misleading and restrictive a regard to 4% Any effective remedy must traverse the claim ‘of tho banking eystom to tho ownership of the finan- tial credit extended to indvetry, a claim which i implied by ‘tho fact that at present money, con- stitating ‘in the ‘main new purchasing power, ie Toaned to a bank's customers, not given, Seoriox 1, 4. It may be helpful to define the phrases used in ihe precoding proposition ©) Ieciusriad Depression —tndustriat depression tmay be characterised aa a lack of sulciont orders to esp both plant and’ personnel emplayed, together With an accompanying’ lowering of the, price level jn relation to the cont of production, so that both the"avalactarr fai to toako m volt. andthe lame of wages of the wage earning class tonds te fall, "Tho phenomena are cumulative and. have. no elation either to. productive capacity "or ‘paycho MIMech.E,, LENNOX B. LER, CECH LUBBOCK. Rt, Hon, REGINALD McKENNA, Mr J. RATER TAYEOR, Mr, A. AG, TULLOOH, Sir FREDERICK LEINLROSS, K.C.M.G., C3. Mr. G. ISMAY, Secretary. MILEE, logial demand. The material iy-producia are bank- pti tho breaking ap of plasty ane payee: lagi "tyrprodsca “ure iadarrial" and "poe tres and te darecton of weial mre. 1G) Paver to Dertores te bg. const ix tbe sbiity to eferwhtt Ue allan regan in exobenge for bla onde es mouny (Gi) Finanes Financ in ie relation to indatry may be dened su the provision ofthe mentary Tndoomens to dslver quoia' snd eerie Ie Obvioaly"the same’ hing ot power to fey. it Proposed to prove’ tht with aepligibe ‘exaptens Power t buy origioatn, and ia vested inthe Paaking pote 2) Financial Syem.—Thia may be conidered sa having thre party th cod eee stem, the pris ‘oitem, and the tation apiam (o) The ered ie eyvem may be considered ac predominantly made ep cf tro flo beak iSane andthe dacountng of bil Since ibe rev of oth of than Bt eal bh the tte td the going ef bath. ssoounts they thay, forthe. parpost oi this inwatigation Bs rested ne simi i) The price eprom i fovnded im tho main on two proposition Fistiy that all conte ef Production tot go inte prt. "Gods thereto, forma the lower mit et pris, Second: sk tie of tari hati wi fet that fats ony tinrenger nts oft pees oorieana bythe ality and ilingnoe of th’ porchoer #2 bey, It aloud Ue noted that wid theres to major lint to pies business cannot tet tcising_ conditions be eariel an wi pris Sel tat Any atag® to do tins ia scree, inthe provision of ert sa Sie 'in aid of reduolos of pe Boe “6 The fovtom preferably con sidoret “jn conjunction with tho “aitnaive Snethod "or “proving. “money” for pubic Sxpenditar, which i by" tan ot oe Tho inducement to subweb "to's. Wana fie "Inthe "Inert pail ony and in {R" varying terme of “redemption. agit Hon “may “properly be conceal an Boag called and examined. taxation