Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-03
SEES j. S. KEEPING
| TO GOLD STANDARD
British Economist Holds
France and Holland Also
Will Stand Pat.
BY NEGLEY FARSON,

LONDON. England, October 3.-The
United States and France will remain
on the gold standard. The British
pound sterling will probably be stabilized
between $3.50 and 81 to the pound.
This is the Judgment OF L. L. B. An
gas, British financial expert. in letter
to the London Financial Times, which
played 1t as a feature news story yes
terday.
900 900, 900 in gold and France So, 225,-
O0o, 900. Mr.. Angas states that there
would be no object in abandoning the
gold standard, even If other countries
should do so, as gold would become al
most worthless and exchange would
luctuate worse than ever.
Parity Sets Export Bonus.
The discount on the pound sterling
In terms of dollars, he says, would. new
ertheless remain owing to international
from old debts, but also from differ
ences of internal price levels which
govern the commodity trade and give
rise to new debts.
The United States. France and Hol-
land, says this British financial expert,
holding huge masses of gold, will in
duce other countries. which recently
have been forced off the gold standard,
to return as soon as possible, even at
a devalued parity.
Parity at SO so to 81 for England he
estimates, would be somewhat below
! the correct purchasing power. Parity,
therefore, would place net bonus on
exports and a small net check on i'm
ports. This will lead to the devalued
countries obtaining an export surplus
and a resultant influx OF gold from
France and the United States. Gold
currency of the at present "on-the-
gold" countries will thus be strength
ened and better distribution OF gold Will
enable 1t to remain a Serviceable cur
rency.
Sees Danger Of Dumping.
Such policy. this British economist
admits, will lead to dumping in
France and the United States. But, he
says, such dumping is inevitable in any
case. For If the United States does not
help the of countries back to the gold
standard, dumping will continue as a
result of the deprecated paper ex-
change.
The price Of gold. states Mr.. Angas,
will remain permanently at its present
level ia bCIInS Vi II dAANo oAAA ASAAeNA -
and the sterling price will fuctuate
until it is eventually fixed in terms OF
devalued pounds.
Great Britain's oil supplies will be
put on the pound sterling basis instead
of on the dollar, or gold basis. Anglo
American Oil, Anglo-PerSian, Burma
Oil. Mexican Eagle. Canadian Eagle
and the Shell group, the Financial
Times states, ION the most reliable au-
-,
ration to put this price basis into ef-
feet without delay.
Oil Seen Unaffected.
This means" says the Financial
Times, that oil prices will not be
affected by currency fluctuations. If
the value of the pound were to fall to,
say, Ave shillings ($l.25), supplies on
the sterling basis would draw upon
their resources to assist those on the
gold basis 1t is considered in
evitable that there will be some rise in
prices-in many instances petrol is now
small as possible"
How this is going to work out is too
soon to tell II Great Britain could
be supplied entirely from countries of
the gold standard. the chances are it
could have obtained such figures that
the prices of the retailer here need not
greatly rise-the more it has to buy
from gold countries such as the United
States. the more directly the price rise
here will coincide with the depreciation
Of the pound sterling. 1t is seen here
as a great chance for Soviet Russia.
more than % per cent OF whose total
oil exports were taken by Great Britain
last year.
The immediate effect of the de-
probation Of the pound sterling is that
British exporters are beginning to quote
prices in the currency of the country
to which they are sending goods mot
in rubleS need it be stated. Before
the pound Topped an article priced
here at 100 pounds sterling was roughly
worth $500 in New York. Today, If
in New York. If quoted in dollars it
means the exporter here gets 100
pounds sterling.
Will Aid Exporters
Before production costs begin to rise
here-and while depreciation OF the
pound hangs around 20 per cent-it
means that the British exporter in
New York, who had been losing busi-
ness because the price was more than
20 per cent too high, would now come
porters, whose price has been less than
20 per cent above that of American
goods, would be able to beat American
prices.
Everything, of course, depends upon
holding the production costs to the
present level here. In this connection
1t Is interesting to point out that while
retail prices here on the cost of living
index are stated at As per cent above
the pre-war level the wholesale price
level Is 5 per cent below. There is
shock-absorbing gap here, therefore
some SO per cent are able to absorb an
increase in raw material prices due to
imports purchased by the falling pound.
1t is believed here that some sort Of
Government control might actually
make this shock -absorber work. In
the tariff wall, for instance, rebates
might also be allowed on imports of
raw materials which are destined 10
enter into the manufacture of exports.
Imports of cotton and wool-which
make Up an extremely important pro-
portion of the value of Great Britain's
exports-might even be exempt from
duty altogether.
Until all countries either come of the
gold standard and Ak a parity 'on the
British pound or make a modified re-
turn TO the gold standard and fix par
ity. hitherto badly hit British business
men are going to enjoy an export
"boomlet" against France and the
United States.
(Copyrisht, 1919
DEATH OF MRS. PRICE
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