If You Owe Your Bank Manager A

The Treasury Could Fill Old Bottles With Banknotes And Bury Them..and Leave It To Private Enterprises On Well-tried Principles Of Laissez-faire To Dig The Notes Up Again.

Nevertheless, If We Contemplate A Society With A Somewhat Stable Wage-unit, With National Characteristics Which Determine The Propensity To Consume And The Preference For Liquidity, And With A Monetary System Which Rigidly Links The Quantity Of Money To The Stock Of The Precious Metals, It Will Be Essential For The Maintenance Of Prosperity That The Authorities Should Pay Close Attention To The State Of The Balance Of Trade. For A Favourable Balance, Provided It Is Not Too Large, Will Prove Extremely Stimulating; Whilst An Unfavourable Balance May Soon Produce A State Of Persistent Depression.

Should Government Refrain From Regulation (taxation), The Worthlessness Of The Money Becomes Apparent And The Fraud Can No Longer Be Concealed.

Long Run Is A Misleading Guide To Current Affairs. In The Long Run We Are All Dead.

It Is Investment, I.e. The Increased Production Of Material Wealth In The Shape Of Capital Goods, Which Alone Increases National Wealth.