835R. W. M. Wiggins to Harrod, 14 September 1938 [a]

Replies to a letter not found of 9 September, follows on from 816 R, continues at 849 R. Wiggins comments on Harrod's numerous suggestions concerning the first draft of the pamphlets on "The Trade Recession". [1] He asks clarifications upon some passages. Firstly, Harrod wanted a foreign-exchange policy such as that advocated in the pamphlet to be supplemented by an anti-trade-cycle policy for the regulation of the internal economy. Wiggins points out that they always thought such policy to be a complement to, not a substitute for, anti-cycle remedies: cheap money and public expenditure alone are not sufficient to maintain internal economic activity. Secondly, Wiggins agrees that their proposal of a control over exchange transactions is debatable; however, he "cannot see that the objection that [it] must lead to complete exchange control on the German model is valid". Harrod had taken exception to the section on "Protection Afforded by Moving Exchanges" of the second part of the pamphlet; this, however, is necessary to the argument, and can be rephrased but not crossed out. Harrod had also pointed out a difficulty for firms which have to undertake long-term commitments for the organization of the market for their goods, but Wiggins thinks that on balance the advantages would outweigh the disadvantages. Finally, Wiggins thanks for Harrod's reference to his contribution to the correspondence in The Times, [2] which will certainly stimulate the interest in the pamphlets.

  1. 1. "The Trade Recession", by the Federation of Master Cotton Spinners and the Parliamentary Monetary Committee (1938).

    2. W. M. Wiggins, "Trade Recession. The Sterling-Dollar Exchange", letter to The Times, 31 August 1938, p. 6; Harrod, "Trade Recession. Mr. Harrod and his Critics" ( 1938:19 ), here reproduced as press item 27 , [jump to page] .

    1. a. From the Federation of Master Cotton Spinners' Associations Ltd., Manchester # , four pages TLS, addressed at Christ Church, in HP IV-D (Box 35).

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