Evening star., 1932-03-27
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touched the French people in a most
alarming way; the loss of the tourist
trade, due mostly to conditions in the
United States and Great Britain, has
been a severe shock to the French-a
shock which has been accentuated by
England'S departure from the gold
Stalsdard and her adoption of tariffs
against foreign goods. France, realistic
and supremely intelligent, has decided
that prosperity depends on peace, and
FslaJ peace depends on a revival of
industry and well-being among her
former enemies and her present allies
A truce has been declared upon old
political antagoniSms, and conciliation
for trade revivals is the new watchword.
Mussolini is no longer talking of the
shining bayonet. He is a great pro-
tagonist for peace.
Realize Need TO Disarm.
The fear of social revolution in
Germany and other countries, the
dreadful paralysis of trade in every
part of the world and the imminent
menace of a complete breakdown of
industrial civilization have at last
shocked European leaders into the
EUINICllCn IIldJ JIGIe UlISJ DC
measures of disarmament and new
policy Of peaceful cooperation. We
are yet long way from United States
of Europe, but I do honestly believe
that We are at the beginning of more
helpful era in which many barriers
between nations will be lowered for
their mutual advantage.
Great Britain approaches this Easter
with real hope and satisfaction Six
months ago things had never looked so
black in England. To be forced off the
gold standard was humiliation and a
menace which could hardly be ex-
as the Bank of England" was a part
OF the English faith. But for a few
weeks and more nothing seemed safe.
1t was possible that the pound sterling
would drop to a few shillings in value
It was possible that imitation would be
forced upon the banks, leading to the
tragedy which had withered into
worthlessneSs.
If that had happened, or anything
like it, there would have been starving
cities in Great Britain, because the
deprecated pound could not have
bought that nine months supply of
food which England has to buy from
foreign sources every year, to the value
of f450,000,000. Taxation, already
Crippling to people with high incomes
and to industrial enterprise, was heavily
increased. Drastic cuts were made in
the dole and social services and the
weekly wages of civil servants. These
cuts in pay led to trouble in the
British Navy. No one could say with
any certainty that the British people
would stand steady in this grave crisis
and that the new National government
would be able to re-eStablish faith in
the security of British credit.
Heavy Drain Of Gold.
The French and other people with
drew their money from British securi-
ties. There was a frightful drain of
gold, eXhausting British reserves. The
City Of London was desperately anxious
Yet in six months Great Britain has
revealed an astonishing strength and
is justified in believing that her worst
to do with it. Many of the countries |
from which she bought her food
supplies went off the gold standard, so
that prices were not increased Other !
countries lowered their prices In order !
to retain the market. In any case, |
prices were astonishingly low, so that |
people with pounds worth IA shillingS
and 6 pence on foreign exchanges |
could still buy 20 shillings worth of
goods and were not aware Of loss. 1t
was a cheaper Christmas than for
many years.
Apart from luck, great credit is due
to the government and the Bank of
England for handling this serious
situation with extraordinary ability, as
was acknowledged by the world when
Great Britain paid back her loans to
France and the United States without
any apparent strain on the pound
sterling as regards the foreign exchange
There is distinct revival of British |