DEPRECIATION OF STERLING.
Even this recital- of facts does not, however, give a complete view of the position. For by reason of our departure from the gold standard there-has been a great depreciation in the sterling exchange, so that whatever (Continued on page 350.) Finance—Public and Private (Continued from page 355.) may be the adverse balance, there is a &eater strain in meeting it. Expressed quite simply, this depreciation in exchange means that indebtedness in foreign currencies' costs us probably from 30 to 40 per cent, more than would have been the case before our departure from ihe gold standard, thus enormously increasing the difficulty of meeting all external obligations. If, on the other hand, America were buying something from us priced in pounds, shillings and pence, she would have to give fewer dollars than she would have done before we went off gold. It is this latter consideration which leads to the generally held theory that a depreciation in exchange will stimulate our exports even though we have to pay more for our imports.
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