Abstract

Everybody's Business

Economic doctors, probing the causes of international financial disorders, have been giving increased attention to the dire consequences of Great Britain's indigestible lump of unfunded sterling debt in 1949. Throughout the second world war, concentration on arms production made it impossible for Great Britain to pay for mote than a fraction of its imports by current exports. This created a financial problem which was met in part by liquidation of overseas investments. The devaluation crisis has made it plain that Great Britain cannot afford to continue using resources which might be turned to earning dollars for the rapid liquidation of sterling debts. Yet a sharp reduction in the funds it has been making available to India might bring on an acute economic crisis there.