Evening star., 1931-12-06
India and Sterling Cause
British Cheer and Woe
BY A. G. GARDINER.

LONDON, december 5.-IndiA ana
the fate of the pound have been the
chief sensations of the week in England.
In the case Of India, events have
taken a favorable turn. The round
table conference was redeemed from
failure by Premier Ramsay MacDon-
AIDS declaration at the closing session
Of the intention Of the government to
pursue an all-Tndia federal policy and
continue the work of the conference
with view OF composing the Moslem
and Hindu differences In regard to the
methods of implementtng this policy.
When the declaration was submitted
for approval OF the House Of Commons
on Thursday, winston Churchill made
powerful attempt to mobilize the Con-
servative rank and file against the gov
ernTent. He had delayed sailing to
America to fulfill lecture tour in
order to launch the attack. Its main
purpose was to discredit Stanley Bald
win and detach Conservative support
from him. The danger of the position
was that the Conservatives, who COM
pose the majority OF the House, largely
are lukewarm on the subject, while a
considerable section is definitely hos
tile to the federal policy.
SLiulCllll also 10 make
breach in the government by showing
that the Simon Commissions recom-
mendations had been disregarded IN
favor of the late Socialist governments
policy and that the duty of the new
Conservative House of Commons was
to revive the Simon policy.
Churchill'S effort was a brilliant per-
formance, but entirely failed to effect
a serious revolt against the government.
Sir John Simon, who now Is foreign
minister, associated himself completely
with the policy Of fulfillment of the
pledges to India OF self government
and warned the opposition against
taking advantage of racial and re-
ligious differences in India In order to
escape the fulflllment OF those pledges
Baldwin Was equally emphatic, and
the fact that Churchill during the war
had committed himself to the dominion
status as a solution to the Indian prob
lem greatly weakened his attack. The
result was that only handful of Con-
the governments policy was indorsed
by majority of 326.
X 4
Having shot his bolt, Churchill Is
now free for his American adventure.
Meanwhile the governments over
whelming victory has cleared the air
and created general relief, the only Sc
rious critic in the press being the Man
chester Guardian, whose ,.ntagonism to
the Macdonald government has as
sumed the character of an obsession.
The Indian delegates are re.1rning to
India in much more confident temper
and Mahatma Gandhi, In an interview
after the verdict Of Commons ex-
pressed guarded willingness to continue
the work Of the conference and advised
his followers to give continuous co-op-
Grafton to the government In the for
mutation of the federal scheme.
II the Indian cloud was lifted some
what, however, the financial shadow
over the country deepened with the
heavy depreciation In the exchange
value Of the pound. The anxiety was
relieved by the statement Of Chancellor
of the Exchequer Chamberlain that
there was no occasion for apprehension
and that the slump was due to excep-
meet imports. The fact, however, has
caused acute concern as to the yul-
nerability Of the pound Prominent
economists urge more stringent use of
the bank rate ~ q means of protecting
the currency, while former Chancellor
of the Exchequer Horne favors adop-
tion of the silver standard.
-
The possibility Of establishing . CON-
mon basis Of exchange between the
british dominions and other non-sold
standard countries also was discussed.
All opinion, however, agreed In regard
10 the necessity of avoiding imitation
and preserving the internal purchasing
mower OF the pound. This 50 far has
been accomplished and fears of the
rorseouences Of imitation have strength
ened the hand Of the free traders In
the cabinet in resisting the demands of
the protectionists.
The duties SO far imposed have been
trivial and, as Parliament Is Adjournins
until February, no further extension OF
the tariff policy Is Immediately possible. |
In view Of the critical situation of pub. |
lie affairs, members Of the cabinet have |
all arrangedTto spend the Christmas