66 (*RANTED the usefulness, in certain cases, of restriction in times of adversity, there is a danger that it may become a menace in a period of recovery, says an article entitled "Restriction Schemes in Recovery," which appears in the May issue of the "Westminster Bank Review.
There must always, it is pointed out, be the possibility that supply may be curtailed not merely so long as is required" to equate supply and demand, but afterwards, when demand is beginning expand. From the general point of view such a situation would be deplorable. The restricting industry itself may temporarily benefit from the inflated prices obtained for its produce, but expansion of. consumption, and in particular the development of new Uses, will be impeded, and indeed demand may be permanently curtailed through the encouragement given io the use of substitutes.
So far, the writer says, it would appear that in the majority of cases those responsible for the regulating schemes initiated during the past few years have been conscious of their inherent defects, and that the sharp rises in prices have occurred despite, and not because of, the policies that have been pursued.
Text read from the printed page and cleaned; old type leaves the occasional error.