Apostles of recovery, economists!
Prosperity turns upon the ratio. of we worked out a formal, that navings" to "investment", and it is to be hoped for the sake of the American plan that their years Scholastic bickering "over, definition of these two terms have arrived at last at a right income-receivers, including. the undistributed balances of commercial corporations, increases in the credit lances and the temporary reserva tion from spending of portions of private incomes which, in its most. harmful form, comes to hoarding. In the same' sphere, "investment" amounts to transferred spending, the organizations in which the investis made being given the right ]within certain prescribed boundaries lof spending the investors' money.
In their abstruse epistles to a Lacdicean public, these apostles point out that the ideal condition lexists only when the ratio between the two remains even. When in-vextment weights the scale to the Jdetriment of savings, then there is series of international events which are lumped together ax causes of the depression occur, there follows: Jo preponderance of' savings over investment which is given an almost irresistible psychological momentary Juntil business reaches the nadir. of the slump.
The Q.E.D. of this theorem that control of hitherto automatic and, in their extent, unpredictable, jon and deflation is the way to keep the ratio of savings to investment more or less steady. And jas a corollary it appears that publi deficits and public borrowings are the best, methods, when industry. ix down, of putting' it towards getting Jon to its fect again. The principle seems to be identical with that fami-Har to everyone who had had at one time or another to lift a mule out Jof a bog: you expect the fulcrum Foy tie for, your lever to sink little way into the slough while you Jara raising the animal out of it.
Text read from the printed page and cleaned; old type leaves the occasional error.