, • THE DEPARTURE FROM GOLD.
, _ So , far as Great Britain is concerned, I consider that ,the year ; has been one of quiet, steady preparation for an improvement in general conditions later on, even ineluding trade itself. It must be remembered that in every sense of the word the year has been a trying one for this countly. A year ago I was writing a few months after our abandonment of the Gold Standard with the conse- quent slump in sterling and fall in British Government securities. 'No one could tell at that time what might be the effect of our departure from the Gold Standard upon our eredit abroad and upon the general cost. of living consequent upon the fall in the sterling exchange. It is in these directions, however, that, the year has brought some developments of a more favourable nature than could have been expected. Thanks . to the imposition of a high Bank Rate in September of last year, we were spared the inflation which at one time seemed to be threatened by the departure from gold, and as a come- • quenee-of-these pmeautieris-sterling-has maintained its pur- chasing power abroad to a Wonderful extent. Quite early in the year the Bank Rate, which opened at 6 per cent., was reduced, and by the end of the first six months it had come down to 2 per cent., thereby preparing the way for a great War Debt Conversion which was ,destined to be one of the conspicuous .features of the year.
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