A fiscal syllogism fateful for Europe last week was this: Developments in Washington tended to weaken confidence in the dollar and make it fall; therefore the British Exchequer, which is resolved for reasons of trade not to let the dollar become much cheaper than the pound, took steps to weaken its own currency. The means adopted was to sell sterling against francs and these the British Exchange Equalization Fund hastily converted into gold to protect itself against possible devaluation of the franc. During the week over a billion gold francs fled France and...
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