Sta,—Mr. Hamilton Fyfe's interpretation of the history of the decade
1920-30 is so controversial that I will not attempt to reply to it. Those who care to do so may refer to the relevant records of the period, and form their own conclusions. He, however, concedes the only point that is important when he says, " This was bad for our exports . . . foreign buyers ceased buying . . this led to increased unemployment." That is the whole point on the facts as I stated them. Our unemployment and health services were insolvent and Viscount Runciman stated (I think mistakenly) that our Post Office savings were in jeopardy. Viscount Snowden, the then Chancellor of the Exchequer, and an able adminis- trator, adopted radical economies in national expenditure, and the gold s'andard was finally abandoned. Mr. Fyfe has evidently forgotten that we had previously returned to it in 1925.
The increase in the cost of living is easily•demonstrated. Today the approximate value of the gold £ is 4os., or double the value Of the paper £. The purchasing value of the £ is, therefore, half, as compared with gold, but abroad the depreciation is even greater, being about 7s. on a gold basis. If " Judea " is right in the average expenditure on drink, tobacco and betting, the results are appalling, for they ultimately affect the purchasing-power of the citizen in other directions.—Yours sincerely,
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