Again, it looks very sound and sensible to keep capital for purposes
that are essential, but, on the other hand, it is so enormously
important to set industry going as fast as possible that almost any
one who will do anything in that direction is entitled to be given a
chance
Again, it looks very sound and sensible to keep capital for purposes
that are essential, but, on the other hand, it is so enormously
important to set industry going as fast as possible that almost any
one who will do anything in that direction is entitled to be given a
chance. In war-time, when labour and materials were so scarce that
they could not turn out all the munitions that were necessary, such a
restriction was clearly inevitable. Now, when labour and materials are
becoming more plentiful, and the scarce commodity is the pluck and
enterprise that will take the risks involved by getting to work on a
peace basis, it may be argued that any one who will take those risks,
whatever be the stuff or services that he proposes to produce, should
be encouraged rather than checked. It is again a question of the
balance of advantage. If we are going to be so careful in seeing that
capital is not put to a wrong use that we take all the heart out of
those who want to make use of it, we shall do more harm than good. If
by leaving capital free to go into any enterprise that it fancies
we can give a start to industry and promote a spirit of courage and
enterprise among its captains, it will be well worth while to do so
at the expense of seeing a certain amount of capital going into the
production of articles that the community might, if it made a more
reasonable use of its purchasing power, very well do without. The same
question arises when we consider the desire of the Government, not
expressed in the above statement, but very freely admitted by Mr Bonar
Law, in discussing it in the House of Commons, to keep capital to be
lent to it rather than expended in, perhaps unnecessary, industry.
Here, again, it is clearly in the interest of the taxpayer that
Government loans should be raised on the most favourable terms
possible. But if, in order to do so, we starve industry of capital
that it needs, and so check the production on which all of us,
Government and citizens alike, ultimately have to live, we shall
be scoring an immediate advantage at the expense of future
progress–spoiling a possibly brilliant break by putting down the
white ball for a couple of points.