HASTY CONCLUSIONS.
I suggest, however, that both as regards the selling of investment stocks and the purchase of ordinary stocks or equities in other directions, action may have been based upon somewhat hasty conclusions with regard to the effects likely to result from our departure from the gold standard. This is so, I think, more especially with regard to the eager purchase of the more speculative shares. In the first place, it is all very well to talk about depreciated exchanges stimulating exports, but we have first to reckon with the general dislocation of (Continued on page 444.)
Finance—Public and Private
(Continued from page 442.) international trade likely to be occasioned- during the period of unsettlement which must almost inevitably folloiv the departure. from the gold standard 'by many countries. Already Norway, Sweden, Denmark and Estonia have followed us in abandoning the gold standard, and it looks as if other countries might adopt similar measures.. Those, who have read Mr., Withers' articles :will have seen how the departure from a gold standard disturbs the Common denominator. which gold occupied as a basis of settlement of international trade and inter- national debts. Even the man in the street can see that if to-morrow we -had to revert to barter in place of currency and exchange, the volume of trade would be gravely retarded by reason of the cumbersome character of the means of settlement. In lesser degree the same holds true when there is chaos in international cur- rencies. Such Chaos may be ideal for speculators in commodities and in exchanges, but not for genuine international trade. In the second place I think insufficient allowance has been made for the final effect of the present abandonment of the gold standard by many countries upon such centres as France and the United States, for, however much we may resent the unnecessary gold accumulations in those countries, any serious break in the credit systems' of those countries or even in their general prosperity would react adversely in other directions. Therefore those who care above all things for international prosperity are hoping that out of the present grave disturbance may come more settled conditions resulting from an international con- ference, followed by international co-operation in restoring a stable gold standard on a basis proportionate to the ability of each country to maintain it.
ARTHUR W. KIDDY.
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