Abstract

Editorials

In a speech to the House of Commons on July 6 politician Stafford Cripps confirmed the fact that in the last three months the sterling area's gold and dollar reserves had dwindled to little more than $1,600,000, which is considered to be well below the safety margin. Among the several reasons for this decline is a reduction in British exports to the U.S. which has been only partially offset by an increase in sales to Canada. This seems to be due to the recession, as does the more substantial drop in sales to this country of such primary commodities which are among the leading dollar earners of the sterling area. Persistent bearishness on sterling in Washington, particularly in the Treasury, has made things worse by encouraging importers of British goods to hold back in the hope of buying more cheaply if and when the exchange rate is cut.