MINUTES OF EVIDENCE 661
and therefore to give justice to all I think that is the best way it could be done.
What about contracts in the shape of debts incurred before 1914 ?—I do not suppose there are many existing now.
You think that all these debts payable by agriculturists to sowers are paid within a certain period ?—My personal opinion is that no commercial contract extends for more than five years, and the proportion of those is very very small. There is no statistical information on this. Professor Fisher has made in his book certain calculations to that effect. He writes there that the rate of interest varies sympathetically with the prices ; so that the rate of interest bears a certain relation to the rise or fall of prices. He then comes to the conclusion that most contracts are very very recent commercially.
You mean about India ?—I mean generally ; I do not know about India in particular; there may be something peculiar in India, but I do not know why it should be so.
Do you think things in India may be different ?—I should not think so unless there was some evidence forthcoming that that was so.
You think that the problems in India are the same as in the West ?—I do not see why they are not.
It would surprise you if they happened to have been admitted to be otherwise ?—It would surprise me.
Regarding the adjustment of price levels, do you think that the adjustment is anything near complete now, owing to the disturbance in the exchange rate from 1s. 4d. to 1s. 6d.?—There would be some disturbance; that would be detrimental to the wage-earners if we went back from 1s. 6d. to 1s. 4d.
The disturbance from the lower to the higher rate from
1s. 4d. to 1s. 6d.......?—Has been favourable to the labouring classes.
Is that adjustment complete, or is there still any mal— adjustment of that ?—I could not say ; that is a matter of statistical investigation which I have not entered into ; but I suppose exchange has been stable at 1s. 6d. for a long time.
How long do you think it has been stable ?—I cannot exactly say ; but certainly it shows signs of stability.