28 JANUARY 1928, Page 3

Apparently when the pound sterling looked the dollar in the

face it did not quite know what it was looking at. However, even if the level of American prices is indepen- dent of gold, this unforeseen arrangement has turned out quite well for us. The level of prices has been fairly constant, and such a standard is much more helpful than steep fluctuations or a rapid fall.. Is it not true, however, in an ultimate sense, that gold has been the determining factor all the time ? The United States banking system has certainly been the servant of gold in so far as it has moved its _masses of gold about industriously and scientifically, and with the most anxious consideration.