Dollar Developments
The coal problem was not solved by the coal crisis of February, 1947, and it should be clear enough that the dollar problem has not been solved by the dollar crisis of August, 1947. If we -do not make more progress in decreasing our consumption of dollars in the next six months than we have made in increasing our produc- tion of coal in the past six months, then we certainly are bound for permanent poverty. Fortunately, there are already a few signs that the dollar problem is not being allowed to go by default. The cuts announced by Mr. Attlee last week were, after all, a little better than nothing. The complete cessation of all food purchases from the United States announced by Mr. Strachey on Sunday was, as the average consumer will soon discover, a great deal more than nothing. And the gathering together of the forces of the Dominions, fore- shadowed in announcements from Australia, New Zealand and South Africa, is likely to make a perceptible impression on the present balance of world trade. All these countries, and Canada, India, Pakistan and Burma as well, will have their representatives in London by September tith, when the meetings of the International_ Bank and Monetary Fund are due to begin, and all of them are faced with the intractable common problem of cutting their demands for dollars. It is as reasonable and just that this situation should lead to an increasing concentration on inter- Imperial trade as it is that the sacrifices of Canada and Australia on our behalf should have their due reward. If for the time being we cannot complete two of the classical triangles of international trade by paying these Dominions in dollars for the goods which they have sent to us, and continue to send, then we must undertake to pay them in goods. We cannot have it both ways. Always the dollar problem leads back to the joint problems of British production and British austerity. And since we must produce it is best to produce for the benefit of those who, have the strongest faith in us.
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