How Much is a Pound Worth ?
" Sterling revaluation," said the Chancellor of the Exchequer, speaking in Rome, " is neither necessary nor will it take place." Both halves of the statement are arbitrary, but the first half—the denial' of the necessity for a revaluation of sterling—is based on all the information which the Treasury can make available to its head, and the second half—the denial of any intention to revalue—is simply a statement of what the Chancellor has decided. These facts make it hard to argue. It is difficult to get on terms with the omnipotent omniscient. But it may perhaps be pointed out that a number of perfectly respectable authorities, both in this country and the United States, are pretty sure that for the ordinary purposes of trade one pound sterling at this moment is not worth four dollars. If the official rate of exchange were altered, so that a pound sterling could be exchanged for rather less than four dollars, we might find that dollars were easier to get, the pound sterling more acceptable, and British goods easier to sell—at any rate, for the time being. So desirable a result is not certain. A great deal depends on whether American prices continue to fall, as Lord Brand pointed out in the House of Lords on Wednesday. Nevertheless, it is impossible to deny that devaluation might turn out to be a wise move. But let us forget that. Let us accept the Chancellor's statement that no such change is necessary. Then we are faced with his pronouncement that revaluation will not take place. Very well, then, it will not. But that means that we shall have to go on fighting to sell goods which, with the pound at its present price, are too dear already for many foreign buyers. The Chancellor himself, in effect, said that when he pointed out that three years is not much time in which to balance our dollar account before Marshall Aid comes to an end. But our course is set. We shall balance our accounts the hard way. And indeed there is no easy way. But the nagging doubt remains—that we are trying to get for each pound more than it is worth.
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