Evening star., 1932-03-29
Rv Cable To The Star

OS SduIC W L uG otdI
LONDON, March 20 (N.ANAD.-
For the first time since the collapse of
the brief postwar boom in 1922, Eng
land is displaying a relatively cheerful
mood. Optimism would perhaps be too
strong a word to describe the change
of outlook which has come over this
country since the beginning of 1882. but
the feeling. almost intangible yet, is
that the end of the calamitous slump,
if not in sight, is not far below the
horizon. Care Is taken not to appear
too sanguine.
A little while ago popular London
joke was the story of two business men
who met at street corner, one of them
radiant over a good stroke of business.
Let us walk around the block in oppo-
can meet you again" The other man
seemed to him the only cheerful crea-
ture in London.
Now it is scarcely possible to pick
up a newspaper without reading some
hopeful intelligence about the improve
ment in sterling exchange or an assur-
ance by some leader in industry that
things are at last on the upgrade.
The reasons for recovery of confidence
are several. The abandonment of the
gold standard has not been accom-
panied by the disastrous results which
were feared. The pound has main
tanned its internal purchasing power,
and the money which is pouring into
the eXchequer in payment of taxes at
an unprecedented rate is genuine money,
worth its full nominal value in Britain,
if not abroad.
Initiation Fears Ended.
The ghost Of imitation, which stalked
the land six months ago. has been laid.
Neville Chamberlain, chancellor of the
exchequer, will be able not only to
balance his budget this year with a
reasonable surplus, a feat which a few
months ago seemed an impossibility, but
he will balance it with sound money.
Another bull point Is the discovery
that the British Empire is by no means
as short of gold as supposed. Some
time ago. India. tempted by the large
sterling premium to be obtained for
gold, began discharging her boards of
that metal. 1t must be remembered
that India for generations has been
absorbing gold and silver. How much
OF this boarded gold has been disgorged
by India is not yet definitely known.
but it is certain that at least 5000 O00,-
600 worth has reached London in the
1oSoG 1C" WCCho, dllO IIlG is SUlll
flowing.
The sale of boarded gold in this
country has been one of the minor
sensations of the last few weeks. The
rush came suddenly, and nobody quite
knows whence and for what reason
the idea developed of selling boarded
sovereigns. All that can be said is
that gold coin has been going to the
bullion dealers at the rate Of about a
million pounds a week, and the sud-
den boom in gold sales has not been
confined to sovereigns, but has includ-
ed gold plate, jewels and other orna-
ments.
Bankers Are Cautious.
The bullion obtained from these
sources is used to maintain sterling ex-
change abroad, and it has already
brought an improvement in the value
of the pound, which cautious London
bankers regard as excessive and as
offering bait to foreign speculation.
The purely financial aspect of his
problems has accordingly for the time
being ceased to be source of acute
worry to the thoughtful Englishman.
He now sees where he is going, and
does not expect any more terrific shocks
such as those of last Summer Per-
hapS he Is trif1e unduly confident on
this score, since the position of Ger
many, in which country the London
money market is deeply involved, still
seems alarming, and debt payments to
the United States will be owing at the
end of the year. The threat of bank
ruptcy has. however, disappeared, and
no one expects that it will arise again
On the economic side the signs Of
impairment can be read in the success
of the British Industries Fair, the great
annual display of British manufactures
in LONDON and Birmingham. which this
year attracted more foreign buyers than
ever in its history. 1t was noted that
the larger volume of business was done
mainly owing to purchasers from the
Scandinavian countries, which followed
England's lead in going off the gold
standard.
France and Germany are less willing
to spend money on British goods, but
the new British tariff is compelling