Pounds and Politics

Like a bolt of lightning, the debate in the British Parliament has been and gone. Aside from a fresh smell in the air, there is no visible evidence of its visit, and we are left with no better notion of the Labor Government's position than before. That Labor would receive its expected vote of confidence was apparent before the debate commenced; the only reasonable conclusion is that devaluation was not the real issue in question, but that Parliament instead had in the back of its head the impending elections.

Winston Churchill, speaking as Leader of the Opposition, called for an immediate general election, and in doing so took considerable risk, since an election at this time would almost certainly favor the Labor Government. Nevertheless, it seems probable that there will be a general election within the next two or three months. And faced with the prospect of dealing with a newly upheaved economy, the Government could conceivably hope for a Tory victory, in which Churchill and his Party would be left holding the bag.

While the attitude of the British labor class is still unsolidified, it will soon emerge reflecting "bread-and-butter" objections--desire for wage increases to meet the rising domestic prices consequent with devaluation. So far Sir Stafford Cripps' 20 percent increase in profits taxes does no more than place an unreasonable burden on an already belabored people. The course of future British policy, in the long run, will be determined not in Parliament but in the coal mines, the factories and the union meetings. Britain's parties today have so much in common, a trait which is to a great extent inherent in Parliamentary governments, that the success or failure of either one will rest ultimately on the people at large. It would be foolish to attempt to predict the outcome of the present political skirmish on the basis of devaluation, its results, and the debate. If the Conservatives return to power at the next election, and then manhandle devaluation, the laborites will have a strong talking point in succeeding elections. Whatever happens, the pound is still hot, and must continue to be tossed about until it cools.