WHAT FULFILMENT OF OUR OBLIGATIONS INVOLVED.
This country gave a lead at a comparatively early date after the War as regards the strict observance of contracts. As soon as it became possible to meet our obligations to the United States through a funding operation, we recognized America's claim and, having previously offered to wipe out all obligations of our Allies to us if America agreed to take similar action, we did not fail to fulfil our own obligations, although America turned a deaf ear to the proposal for a general wiping out of War debts. A little later, in 1925, we declared our intention of re-establishing the post-War value of the £ sterling by returning to the Gold Standard and to the free market for gold.. By doing so we did much to give a lead to other countries and to help on the stabilization of currency generally, and therefore the rehabilitation of international trade.
Whether this honourable and * even heroic attitude on the part of this country was justified by all the facts of the situation I shall not stay to enquire. The point, however, which seems to require* emphasis is that the attitude called for a very clear recognition not merely by banking authorities, but by the Government of the country of all that was involved. _ . . .
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