British Food Journal Volume 70 Issue 2 1968

Abstract

The initial shock of devaluing the currency, after so many promises that it would not take place, has passed; only the uncertainty and apprehension remain. It seems an idle exercise to compare the present state of the country's economy with other periods in recent history, such as when in the first Labour Government, we went off the gold standard; at that time, shock was indeed profound and again, the French were cock‐a‐hoop, but the position was complicated by the huge inter‐indebtedness of the Allies in the First War. Or the first devaluation after the Second World War, but both periods were also characterized by public waste and profligate spending. Now, we have to obtain foreign loans and financial backing to keep going, and it is this aspect of the present devaluation which will probably far outweigh any positive advantages. The country's massive external debts were increased by approximately one‐seventh overnight, probably wiping out completely all the repayments made at such great effort since the War. Devaluation of the currency cannot be seen as anything but a grievous blow to the country, presaging hard times ahead for everyone. When promises were being made that devaluation would not take place, there can be little doubt that these were honestly made and, at the time, believed in, for no Government of a country with imports always exceeding exports, would impose such a burden on its people willingly. It must then have been forced upon them.

Citation

(1968), "British Food Journal Volume 70 Issue 2 1968", British Food Journal, Vol. 70 No. 2, pp. 33-64. https://doi.org/10.1108/eb011662