Current Situation

Foreign developments again demanded attention in financial and business circles. Just as the Hindenburg election eclipsed in public opinion the French financial scandals and the resurgence of M. Caillaux, so the German election was ousted from public attention, last week, by the momentous action of Britain in resuming the gold standard (see below; also COMMONWEALTH).

Evidently Chancellor Churchill's step in restoring the gold standard has established a new milestone in European recovery from the War. Nonetheless, the European outlook is still highly uncertain, with mutterings in the Balkans again proving a disturbing factor. The British action may go far as a valuable example to other nations in halting false economic doctrines regarding debts and currencies. This, plus the Experts' Plan already in operation, is probably the most constructive step yet taken in War reconstruction abroad.

Tourist travel from the U. S. to Europe this year promises to be enormous, and serves to pull up foreign currencies in terms of dollars no less than do imports here of European goods.