Item 214 - Letter from J. M. Keynes to F. W. Pethick-Lawrence

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PETH/2/214

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Letter from J. M. Keynes to F. W. Pethick-Lawrence

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  • 7 Mar. 1937 (Creation)

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46 Gordon Square, Bloomsbury.—Agrees with his views (on the re-armament loan). Does not think it necessary to impose punitive measures to stop alternative projects. Sends a copy of his article for The Times (2/215).

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46 Gordon Square, Bloomsbury
March 7, 1937

The Rt. Hon. F. W. Pethick-Lawrence, M.P.
House of Commons,
Westminster, S.W.1.

Dear Pethick-Lawrence,

The line of thought you indicate in your letter of March 5th is in my judgment entirely the right one. Fundamentally this is not a matter of finance, but of calling out, as you say, new sources of production. The answer must depend upon the elasticity of supply.

Personally I believe that the programme can be carried through without any punitive measures to stop alternative projects; though doubtless there will be cases where shortage of plant will for the manufacturer to choose between one thing or another.

I have, as I said I might, written a further article for the Times and enclose a copy of it herewith.

J M Keynes

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