Finance—Public & Private
Relinquishing the Gold Standard
THE strenuous efforts on the part of statesmen and bankers during the past few weeks to save the pound sterling have been in vain. Something more than effort has been expended for in the endeavour to save the gold standard we borrowed the equivalent of 1180,000,000 in franc and dollar credits. Whether following upon the formation of the National Government a few weeks ago it would have been possible to save the pound had circumstances been ideal, it is difficult to say, but un- questionably the work of the National Government and of the bankers was terribly impeded by the constant talk of a. General Election, while such incidents as the few hours of unrest amongst naval ratings was distorted and reported abroad as a kind of naval mutiny. Briefly and imperfectly summarized it may be said that for a long time before the new Cabinet came in confidence in the pound, both at home and abroad, had been steadily impaired as a result of many years of national extrava- gance and of Socialist legislation.
With the formation of the National Government pledged to economy and with concrete expression of that determination in Mr. Snowden's Budget there was some revival of confidence both at home and abroad. When, however, it was discovered that the Opposition, under Mr. Henderson, was bent on distorting the facts of the situation and was apparently spoiling for a class war and when, moreover, on the Conservative and Protectionist side there was a constant clamouring for a General Election, it was recognized that these influences were wholly antagonistic to the efforts which were being (Continued on page 404.)
Finance—Public and Private
(Continued from page 402.) made to restore confidence and to maintain the integrity of the pound. During last week withdrawals of balances from this country were enormous, S and were quite beyond the power of being cOireCled-'13y,. the use ofc the credits abroad already referred to. Consequently the announce- ment was made to the TreVs last 'Sunday evening that the British Government had teinpotarily abandoned the gold standard.
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