Better surely the disadvantages of borrowing with the advantages of a revival of trade, than the satisfaction of theoretically sound finance with the misfortune of being overtaken in the race for foreign markets by continental competitors. Stabilizing the Exchanges Labour contends that the Government can materially assist industries which cater for our export trade by stabilizing the exchanges. It appears to contemplate reversion to some such system as “pegging” the exchanges, which was customary during the war. The International Financial Conference pronounced on that procedure as follows: “Attempts to limit fluctuations in exchange by imposing artificial control on exchange operations are futile and mischievous. In so far as they are effective, they falsify the market, tend to remove natural correctives to such fluctuations, and interfere with free dealings in forward exchange which are so necessary to enable traders to eliminate from their calculations a margin to cover risk of exchange, which would otherwise contribute to the rise in prices. Moreover, all Government interference with trade, including exchange, tends to impede that improvement of the economic conditions of a country by which alone a healthy and stable exchange can be secured.” On the other hand, “the present chaotic conditions of the exchanges makes international trade,”—to quote the Federation of British Industries—“instead of being a matter of reasonable foresight and calculation, a game of chance, in which the rules and stakes are perpetually altering without the will or knowledge of the player.” It does not seem that much can be done in the direction of steadying the exchanges except to put such pressure as is practicable on foreign countries to cease inflation by printing paper money, to balance their budgets, and to stabilize their currencies and re-anchor them to gold, though not necessarily in the same parity as pre-war, at the same time adding to the national wealth, on which sound currency is based, by increasing national production, decreasing consumption, reducing expenditure, and prompting public and private economy. Revision of Financial Policy