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 effect that he had been misunderstood and that no such change was contemplated; and in his speech at Plymouth on October 25 the Prime Minister dealt, in his hearty and outspoken manner, with the inflation scare. "You will," he said, as reported in next day's Times, "have seen, as I have, suggestions for creating out of nothing artificial money to finance this, that, and the other. It is not in that way that the problem of unemployment is to be tackled. There is no truth whatever in any stories that you may hear from any quarter that any Government of which I am a member will depart from what is understood in this country to be sound financial policy. It is well that this should be understood clearly at home and abroad, as great harm is being done to British credit, on which so much depends, by loose talk about inflation. People are about as accurate when they talk about inflation and deflation as they are in the use of inverted commas. We are not in present circumstances, any more than we have been for many months, pursuing a policy of active deflation, and we certainly do not propose to proceed in the direction of inflation. No such project has ever been considered."

Mr. Baldwin ended his remarks on the subject by saying he hoped this would "lay