H&939 ANALYSIS OF CONTENTS I. Function of economic theory in time of war (pp. 3-4). II. The quantity theory of money in the abstract (pp. 4-10). III. The theory applied to present conditions. Is the existence of inflation proved? (pp. 10-18). IV. Loans a cause of inflation. Taxes versus Loans (pp. 18-20). V. Some aspects of Taxation (pp. 20-4). VI. Import duties imposed for purposes other than revenue. Restrictions of trade as a sanction of regulations for the maintenance of Peace (pp. 24-7). CURRENCY AND FINANCE IN TIME OF WAR I. The obligation attached to the Chair of Political Economy, to 'deliver from time to time a public lecture', seems onerous to the present occupant of the chair. To one who has principally been employed in cultivating the more abstract portions of the science it is not easy to gather from that field fruits ready for consumption by those who are generally more interested about results than methods. The difficulty is increased in time of war, partly because more is then expected of the economist. In quiet times the Art of Political Economy consists largely in abnegating art; playing the rôle of the wise physician who when consulted by one who has nothing much the matter with him has the courage to advise doing nothing. But in the fever of war time the easy course of laisser faire is evidently inadmissible. In one respect, indeed, theory shows to advantage in times of disturbance. It is prepared for occurrences which appear paradoxical to the practical man. For example, theorists had contemplated the possibility that, if gold were extruded by the abundance of papermoney in different countries, gold might fall below the level of notes in some countries; as is now the case in Sweden. But if in this respect theory comes to the front in 370318 |