Evening star., 1933-05-07
BY the Associated Press.


LONDON, May 6.-Since Britain
ago, the economic and financial advan-
tages which resulted have placed this
country in Q more sound position than
at any time since the World War, &C.
cording to the authoritative opinion OF
financial, political and business lead
ers.
How sound this improvement has
been and what the future holds In view
OF the latest phases Of the world eco
nomic crisis, including the factor OF
abandonment Of the gold standard by
the United States, Is one Of the most
debated questions in the country.
To the American public, perhaps the
most interesting fact concerning Britain
of the gold standard Is that although
the man in the street may not be bet
ter OF, neither is he worse on.
Even drawers Of the dole" can buy
just as much food-perhaps q little
more-with their shillings as they did
before September, 1881, when gold was
abandoned.
Workman's Living Costs Cut.
Wages have not been cut generally
and the workman's cost of living has
been gradually decreasing. The chan
cellor Of the exchequer made the work
er's life more worth living by taking q
penny In pint OF the beer tax In the
recent budget.
Unemployment remains the one great
blot on any picture Of British recovery
Whether a coalition, Conservative, La
Dor or National government was In
power; whether the nation was on the
gold standard or of, the role Of the
workless has mounted slowly to nearly
5000 900.
After Britain left gold in September,
1881, unemployment gradually grew
worse through 1882, improved season.
ally in 1888 and at present stands at
2.776,184, which Is &c, ,450 less than the
total in April.
When the United States abandoned
gold last month 1t was natural to look
for comparisons between the British and
American positions under managed
currency, but the circumstances under
which the two nations left gold are
considered here to be so different, and
the world position has changed 80 much,
that sound economic and financial par
allels cannot be drawn.
One Condition Common.
One condition, however, was common
to both countries. Britain was at a
high pitch Of national feeling under its
new national government and had &C
claimed Prime Minister MacDonald's
new leadership as the United States
has acclaimed Mr. Roosevelt's advent to
the White House. The national gov
ernment held an overpowering major
ity in Parliament and Mr. Roosevelt had
Congress at his feet.
Beyond this, in the belief Of British
commentators, there IS little basis for
comparison. They assert that Britain
was forced of gold by the withdrawal OF
foreign deposits The United States de-
hberately went of, according to the
British view, still holding gold stocks
amounting to $4,000 ,000, 900.
The American action was infiationary
while the British action resulted in a
def1ationary trend, according to British
commentators
Domestic situations prompted the
American move, in this view, while in
ternational pressure caused Britain to
act without q pre-conceived plan, and
some OF the economic and financial ad-
vantages which almost Immediately be-
came perceptible surprised the nation.
Blind Faith Gained Fearx
The blind faith Of the ordinary Eng
llshman in his government and his ma
tional institutions, such as the banks
prevented any tendencies toward panic
NO infationary movement resulted
either In currency or credit, although q
boom in securities and commodities ran
for month before prices dropped to
their former level. Price levels did not
change either internally or externally.
Britain's greatest benefit came from
her deprecated currency position, which
enabled her to increase her exports-or
at least check their decline-to decrease
her imports, and to correct the adverse
balance of trade.
With the drop of sterling a SO 1-3 Der
cent tariff wall was automatically
thrown around the country. At the
same time her debtors automatically re-
duced the cost Of service on their loans
by the same amount and thereby obyi-
ated some defaults.
The fall of sterling brought other
nations tumbling from gold until the
sterling bloc" stretched around the
world, and, fortunately for Britain, il
included countries such as Argentina
which supply her with primary products
Instead of guarding gold stocks
Britain's policy was directed towart
maintaining confidence and stability
and such has been the direction of thi,
policy that London again finds itsel1