490Z. O'Rorke to Harrod, 17 September, 1938 [a]

Follows on from 489 Z. "... unless I have misread you, your suggestion is that an expansion of bank credit should force the joint-stock Banks to increase their investments, mainly through purchases of gilt-edged securities, and that the consequent fillip to the gilt-edged market would raise security prices in other markets and facilitate new issue business, thus reviving capital expenditure, which would in turn stimulate consumer expenditure." [1]

  1. a. From 23, Cliveden Place, London, 4 pages TLS, in HP IV-791.
  1. 1. Reference is to Harrod, "Meeting a Trade Recession" ( 1938:11 ).


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