Evening star., 1933-01-22
English Find Pound Sterling Holds
Purchasing Power i'm Markets at Home

occurred without producing a catas-
tropne- In England there has been alb.
solutely no sign OF panic.
In addition, when the citizens vera
asked by their government to exchange
any gold which they had in their pos
session Tor the deprecated pound they
dld so without even asking themselves
II these pounds they were given would
ran stlll further in value. When the
question OF the recent conversion was
oecioed upon the bearers of notes ac-
cepteo It with non-stabilized cur
rency. Every day the English are max
Ing long-term contracts with the pound
as basis, just as if they were assured
tnat the exchange will not fall during
the next three or six months
In the last analysis the English do not
reason-thiS is patriotism together. per-
maps, with little ingenuousness. The
average Englishman does not for a mo-
ment believe that the pound has been
lowered in value; it is gold, he saws, that
has appreciated in value. If there is
anything changed in the world, he
thinks. it is not the British currency.
but international prices that have been
bungled by the holders of gold in Amer
lea and in France. In his eyes there
Is only one thing fixed and that is the
pound, and the result has been that the
internal purchasing power of the pound
has not budged.
This point of view, of which was
already cognizant and which seemed to
be a little ludicrous looked at bv con-
tinental eyes, becomes more explicable
in certain aspects when you are in Lon
don. 1t is certain that the pound plays
large enough role in the world to give
the appearance of being a center of at
oil
tuations
Such is the state of mind have en-
countered; an absolute confidence irra-
tlonal because it is inStinctive) in the
solidity of the British nation.
Nevertheless. those in power know ex-
actly the serious consequences of a
huctuating money-above all when that
money Is the pound sterling. The thou
sands of industrialists rather rejoice in
the fall OF monetary values because
that is the equivalent, for them, of a
premium on exports. But the city, the
international finance center, is ad-
versely affected by having to deal with
monetary instrument whose value Is
not stable.
In world transactions the importance
OF draft on London is known; from
time immemorial nte people of the
"S1ASA 2Ao'N uSSo VIC gOQIlu dS LIE DdSlS
for computing and I1aking their pay
mentS. Why? BeoalSe the pound is,
because it was, the most stable money
In the world and the one most inter-
nationally accepted But if its value
Is no longer assured, will. it be used in
this way in the future? Yes, without
doubt it will, with safeguards insur-
ing against fluctuatioh-, But in the
end will not the world turn from it?
This of course, is a danger-if this 4Issa4.-
ace has not already materialized II Is
because competing currencies hove no.
arisen to meet the situation. Nemner
New York nor Paris has succeeded in
acquiring the international Importance
OF the city. But London is well aware
that it must pay attention ami watch
out.
That Is why England from this day
on desires to return to stabilized cur
rency based on gold, though she shows
no haste in this respect.
1t would be too great risk to remain
long time in this uncertainty, for
while the English look upon the pound
as stable, other countries do not so
consider 1t. When We look upon the
British situation from the outside, with
its unemployment, the melting away of
its volume Of business, the loss of its
export markets, the increase of short
term loans, we are obliged by pure rea-
son to be pessimiStic
! But the impressive confidence that
the English have in themselves be-
comes, we must confess, a Stabilizing
factor and promise Of restoration.
| In spite OF yourself you cannot help
thinking Of the philosophy Of DR.. Coue:
| Every day and In every way am get
| ting better and better"