Whether Mr. Baldwin's Government deflated too quickly and whether they
returned to the gold standard at an inopportune moment are matters of legitimate debate, but whatever the answers may be it is plain that the medicine has been restoring the health of the patient, who is now about to resume a normal life. Not of course that convalescence can safely be regarded as ended ; the utmost care is still needed ; but it seems at least that Britain is " out of danger." The Federation of British Industries qualifies its optimism by making it dependent partly on 144 the maintenance of the monetary policy adopted by the 145 U.S.A. Federal Reserve Banks last August to assist 145 Europe and partly on the continuance of peace in British industry. The most favourable factor upon which the Federation puts its finger is that British prices are now broadly " in adjustment with world prices." It is no longer true that our manufacturers arc suffering much from " unfair undercutting," even in cases where it remains true that the level of prices is unremunerativc.
