Britain's Gold

Chancellor Churchill's move for immediate gold resumption (TIME, May 11, BUSINESS, COMMONWEALTH) was criticized last week by enemies in Parliament on the grounds that it would flood Britain with gold, and that it would shackle Britain to the U. S. in the event of heavy gold exports. After pointing out the contradictory nature of these criticisms, Mr. Churchill has declared that gold resumption shackled England only to present realities--a pointed and adequate retort. Already over -L-1,000,000 in gold has been exported from England since assumption of the gold standard, with more to follow in all probability. The British are hoping that the rediscount rate of the Federal Reserve Bank of New York may be reduced --a step which will decrease the U. S. tendency to draw gold from England. In any case, it is not unlikely that 1925 will see a further advance in the rate of the Bank of England, designed to check gold exports. Such an eventuality may not occur, however, until the critical autumn months, when the normally heavy British imports of U. S. cotton, wheat and other materials ordinarily turns the trade balance heavily in favor of the U. S., tending to cause gold withdrawals from London.