Defense, Controls, and Inflation.pdf - The Ludwig von Mises Institute

40 Defense, Controls, and Inflationof circulation might mean that we would require a restrictionin the volumeof money greater than anybody would in practicecontemplate. Furthermore, I do not believe it is only that. Thepeople are not going to be held back from these hivestmel1ts.They have portfolios of securities which they can sell out. Theywill find a means. When there is investment that is nationallyneeded and they see the profit there, they will find a way ofmaking that investment, unless we have some other method ofdiscouraging it.MR. MINTS: Does not that mean simply that the centralbank should sell still more securities? Do you mean to say thereis a limit beyond which the central ·bank cannot·go?MR. BURGESS: Yes; we have to have a market for them whenwe sell them.MR. MINTS: There is always a nlarket at a price; there is nodifficulty on that score.MR. BURGESS: I beg your pardon. I sat there and tried tosell them, and there was no market at any price when theythought it was going on down farther.CHAIRMAN LEVI: I see that we are following the outline. Ishould like to ask Mr. Harrod whether he has now spoken onItem I, C, on the outline.REPRESENTATIVE CELLER: Before we come to that, mav I askMr. Burgess a question, please? Senator O'Mahoney ha~ madereference to the social pressure for investments in building construction.It may be all very well in theory to say that we shouldcurtail building operations on the part of governnlents, federal,state, and municipal; but we are faced with situations in manylnetropolitan areas where we have people living in miserablehabitations. How can Washington and the state capitals and themunicipalities successfully resist the pressure and demand forexpenditures of funds for new construction? It may be very wellin theory, but we have to go a little bit beyond that.MR. BURGESS: I recognize that problem, Mr. Celler. I haverecently canvassed the building situation with someone whoknows it pretty thoroughly. A certain amount of this demandis a demand for housing at very low charges and very easy pay,and we could cut down on that considerably, probably to the