917R. H. F. Scott-Stokes to Harrod,
13 July 1939
[a]
Scott-Stokes
agrees with Harrod about business morality:
[1] although it is a "low-level" morality, it is
effective as far as it goes.
- 1. Refers to
Harrod's article on "Price and Cost in Entrepreneurs' Policy"
( 1939:10 ), pp. 8-11.
Harrod's article, together with Hitch and Hall's contribution in
the same issue of the journal, was circulated to the entrepreneurs
interviewed by the Oxford Economists' Research Group in July 1939.
Harrod also received comments from R. H. Brand (who was
interviewed by the OERG on 21 May 1937: see the report in HCN
6.17.1), who strongly agreed with Harrod's remarks on ignorance
and uncertainty (letter to Harrod of 18 July 1939, in ABP 635),
and from Barnard Ellinger (interviewed by the OERG on 28 January
1938: see the Report in HCN 6.20.1), who disagreed that
entrepreneurs talking of fair and just price have in mind
considerations of general morality. He claimed instead that they
consider fair a price which is profitable to both buyer and
seller, high enough to afford a normal dividend to shareholders,
not too high to reduce consumption, not so low to reduce wages.
Ellinger also suggested to invite the entrepreneurs to cross
examine the OERG on their theory (letter to Harrod of 20 July
1939, in ABP 635).
Brand's letter mentioned above gave rise to an embarrassing
situation, which Harrod described as follows to his wife: "I had a
trunk-call from Andrews this afternoon. Apparently Brand--a very
important banker--wrote some long notes about our business men
reports addressed to me and Andrews replied that I had read them
with interest. (I havent seen them of course). Brand met Henderson
at dinner and was quite furious at this cavalier treatment by me
of his attempts to help economists. Andrews was dumb-stuck with
remorse over the problem. I have written to Brand to explain the
circumstances" (letter of 22 July 1939, in HPBL 247-48). The
matter was the subject of two letters to P. W. S. Andrews of 22
July and 1 August 1939 (in ABP 45 and 635, respectively).
- a. From
Glastonbury, Somerset # , PcS, addressed to 74 High
Street, Oxford, in ABP 635.
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