Readers of the Spectator who arc interested in problems of
finance and currency (and we know that there are. many such) should certainly read an article in this month's National Review by Mr. J. F. Darling, called. " The Anglo-American Debt and Unemployment.: A Way Out." Mr. Darling rubs in some of the unpleasant facts of the American Debt and then gives us a most interesting outline of a scheme by which we might exercise our option to anticipate payments and clear the whole debt off in fifteen years instead of in sixty. His scheme is impossible to summarize in a sentence, and we even do it an injustice when we say that it is one on the familiar lines of Empire development. The whole Empire might co-operate together for the increased. production of commodities which we could send. to. America in order to liquidate our debt. We do not know whether Mr. Darling would adinit the charge that his scheme is a little Socialistic, but his last para- graph suggests it :— " The exigencies of the War called into being a Ministry of Munitions._ Is there not_ now need for a new Ministry, or anyhow a very strong Department, to be created—a Ministry which would call to its aid the best talent and experience here and throughout the Empire in order to further with energy_ the.. production and exchange of commodities_ necessary to_ liquidate our- debt to America 1" If Mr. Darling has no abjection to-Government action of this type, would not a simpler method be for the British Government to buy out our Imperial gold mines, which, as he says, produce £50,000,000 worth of gold a year ; increase their output to the maximum without reference to the present world demand and ship that gold straight over to America ? The Americans would be forced to accept it, as the debt is a gold debt, and the cost to the British Government would appear to be simply the cost of production and shipment of the gold plus the interest on the compensation to the present mine-holders. This, of course, like Mr. Darling's own plan, envisages the abandonment of the gold standard in this country. Hence in addition to the specially obtained gold from the mines, our present gold reserves of £7.53,000,000 could also he sent to America as he himself suggests. We do not in the least know whether this is a practical scheme, but at any rate it seems as practical as, and considerably less elaborate than, Mr. Darling's. * * * *
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