Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-27
BY PAUL SCOTT MowRER.


~ ARIS.-It is impossible to over
- estimate, or even to estimate
at 81 an R,t the shock he r felt t s4'9s
going of the gold standard.
Several days now have elapsed since
this momentous event and people
everywhere, even the best informed
people, even leaders, are dazed. 1t is
as If, while the citizens we're quietly
going about their business, the skies
began to rock and the earth tremble.
81 feel" said one European to me,
~like man sitting comfortably in a
leather chair, eating good meal on
ship adrift, going none knows how or
where"
The question every one Is asking is
the two short, significant words, What
next?"
For more than a century Great
Britain has been the dominant power
of Europe, the worlds greatest empire,
the chief political stabilizer. Many
perspicacious Continentals have fore
seen in the Hast 10 years Great Brit
aims slow, sad and gradual decline;
many economists, French economists In
particular, sounded a warning against
sterilization Of the pound at par after
the war, but the suddenness Of the ac-
compliShed fact of British imitation
nevertheless left every one stunned.
Collapse Of Myth.
"The collapse of the pound sterling"
says an editorial in La Stampa, Milan
newspaper, sis the collapse of a great
rich, Infinitely powerful Great Britain,
mistress Of an immense empire on
which the SUN really never set"
It would be mistake, however, to
assume that Continental powers view
Great Britain's plight with anxious
pleasure. The contrary is rather the
case.
Italy and Germany see weakening
OF a power which they had come to
regard as perhaps their best friend.
Russia sees difficulties in its foreign
trade, and consequently the execution
Of the five-year plan will be comph-
Gated.
France Had Faith.
AS for France, it never viewed its
numerous postwar difficulties with
Great Britain as more than temporary.
It has always believed that in a crisis
Great Britain and France, as the
worlds greatest empires, with COM
mon interest IN peace and the status
quo. would inevitably stand together.
Great Britain's present plight, there
. 1OfG, - IuCCIpLCtC0 III EdIlS do tCuol11S
70 increase the confusion in Central
Europe, tending to disastrous over
throw Of the gold standard everywhere
ard tending more and more to make
France with the United States the sole
guardians Of peace and order.
Continental economists have no hesi-
tation in saying how the British crisis
happened. Ever since the World War
Great Britain has been crippled by high
production costs and an enormous ma
tional debt, the results of which were
a decrease in foreign trade and an In
crease In unemployment, which, in
turn, led to demagogic and socialistic
measures which increased taxes still
more.
Took Excessive Risks.
British banks, unable to operate
longer with British trade SURPRISES, be-
cause. there were none, borrowed
abroad In sound countries, relent TO less
sound, took excessive. risks. and were
caught In the German crisis.
The normal remedy for this situation,
say Continental economists, would have
been drastic dedation by cutting wages
and expenses of all kinds, with the view
Of decreasing imports and increasing