Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-23
BRITAIN TO FIGHT
INITIATION MOVES
International Competitive Ex-
| pansion Is Feared as
:. Confusion Breeder.
By EDWARD PRICE BELL.

LONDON, England, September a.
Determination to keep sterling at the
highest possible level continues to in
Spfre the national governments entire
policy. There will be no running after
the win o. the wisp Of foreign trade
by deliberate imitation. Either the
British people viii ge financially patri-
otto coluntarily--which Is expected
or the government will enforce financial
patriotism. Private sacrifices of sterling
for the profit supposedly offered by for
eign exchange will be prevented dra-
eonically.
The governments position may be
stated thus:
Competitive imitation, which I'M
d5ubtedly would follow British imitation,
Spells universal confusion and mis-
fortune. We were forced of the gold
standard by foreign, not by domestic
influences. Unwarranted fears abroad
were the causes. AS we fought for the
gold standard with all our strength, so
we shall fight for the sterilization OF
sterling at the highest point which
international circumstances may make
feasible"
Economists Back Government.
Leading industrialists and economists
heartily support the government in this
attitude. Relieved as they are from
the severe mechanical constraint OF
the unyielding monetary Standard
constraint which was becoming daily
severer owing to the efflux OF gold from
England-British manufacturers under
stand that little of that kind OF re-
lief goes q long way. They put no real
trust and certainly no permanent trust
in currency depreciation as COM
petitive weapon. They deem It as
simply means of knocking the bot
tom from under the credits and COM
merce of the whole world.
Nor is that all. British business men
realize the necessity of avoiding steep
rise in the cost of living among the
masses. Such a rise would be POLITICAL
" disturbing. 1t might cause general
loss OF confidence in Conservative pol
icies and thus threaten the power OF
Prime Minister Ramsay Macdonald
and his three-party followers to weatn-
err the storm on accepted capitalist prln-
ciples. Prices will be higher. but hon
est and vigorous efforts will be MADE
In hold them well below the danger
line Manufacturers and traders. IN
short. are with the statesmen in want
ing not monetary depreciation, but M
ternational measures to place both gold
and silver at the service OF the world 5
business on 'scrupulously fair terms all
around.
Holds Gold Supply Too Small.
Sir Robert Horne. for instance. one
NJ the greatest of British public men
and deep student of international
trade declares that the worlds business
a. becoming too big for the worlds gold
supply. even If this supply were as
tribt1fed scientifically. He joins many
Of his compatriots in urging an inter-
governmental conference TO consider
the monetary restoration OF silver as
an 'ecumenical prosperity expedlent.
Sir Robert believes that American OPP
position TO such a move. though once
pronounced in some quarters, may nave
moderated ain view Of the worlds
economic and financial extremity.
This authority viii have none OF the
view that reconciliation of silver would
lower its value beyond the possibility OF
any stable ratio with gold. 1t IS
remarkable thing that over long
series of years the production OF gold
and silver has been almost unvariabie,
relatively" says Sir Robert. For Tour
centuries the ratio has been 1412ounces
of silver to one ounce Of gold. For the
last so years the figures have been l2lz
ounces of silver to one ounce sof gold.
The problem is not at all unmanagable.
And governments ought TO manage IT.
They can do nothing else OF greater
human importance right now than TO
follow the road of monetary science TO
. just solution freeing buying power
Copyright 1917