Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-28
England's Depression
Attributed to France
BY A. G. GARDINER,
Ensland's Greatest Liberal Editor.

LONDON, December 2T.-With the
coming of the Christmas season, the
situation in England has quieted down
temporarily, but the general feeling OF
stress and apprehension continues.
No signs are as yet discernible OF
Revenue Is down. Company after COM
pany Is lowering or passing dividends.
The Stock Exchange Is inactive, and
employment figures, which usually at
this time of year show q substantial
response to the increased Christmas
trade, have made only the slightest
movement upward. The number of un-
employed is now well over 2,225.000. 1t
Is by no means improbable that in the
100000.
It is clear that the considerable inten<
siflcation Of our dif1culties which has
taken place in the last year Is Q part Of
the general depression which has af-
fected trade everywhere. In recent
months speculation concerning causes
and cures has become more interna-
tional in character. In particular, more
and more attention has been giveM to
the state of the worlds gold supply.
During the Summer Sir Henry Stra-
kosh q director of the Bank Of England,
published q memorandum which focused
discussion on this subject. In re-
cent weeks Lord D'Abernon, former
banker and late Ambassador to Ger
many, and . man Of great influence In
high circles. has delivered weighty
speeches calling attention once more
to this matter.
Two questions are involved In tlaess
discussions Of the gold supply. First, to
what extent is the deficient or maids
tributed gold supply responsible for the
onset of the slump? Secondly, what in-
huence can be excited by gold policy
In accelerating or retarding the re-
covery?
So. far as the FIRST question Is con-
cerned, opinion Is divided. But probably
the majority of the authorities over
here are skeptical. Whatever the cause
Of local difficulties here in the sum-
mer Of 1929, it is difficult to believe
that the slump in the United States was
caused by any deficiency Of the gold
SUPPLY. This point of view Is much too
simple. Many regret that the Strakosh
memorandum was published, on the
ground that it was likely to give rise to
unnecessary Misunderstanding In the
rest Of the world.
But so far as prospects Of q recov-
cry are concerned, agreement Is much
more general that the influence Of q
gold policy may be important. In this
connection the policy of the French
monetary authorities Is pivotal. The
French hold large balances in London
and New York. There is therefore ale
ways the danger that, so long a. the
French persist in their present policy
of gold boarding, attempts here or In
the United States to revive trade by in
creased lending and cheaper credit may
be frustrated by the drain of gold TO
Paris. In recent weeks this has been
happening here. There has been a large
flow of gold to Paris, and hopes of
cheaper money are for the time being
at an end.
What to do In the circumstances is
difdcult to say. 1t Is little exaggeration
to say that monetary science and none
tary practice In France are half cen
fury behind America and England;
Of the French policy, especially since
the recent failures in France. There II
q growing body Of opinion in this coun-
try in favor Of letting France take the
gold and putting UP with tie conse-
quences. It Is felt that If there were an
agreement between the American and
British banks to let the French have
as much gold as they like. q world re-
viyal Of credit might be staged even
without French cooperation.
Naturally there are great difnculties
here. At present, so far as Europe and
European trade are concerned, the
French have the power TO arrest any
incipient recovery, and though there y
no reason 70 suspect any cause but
ignorance and obsolete machinery, IL Is
quite clear that this power Is now
operative.
CcoDyrisht, lssO1