9

Generally speaking, the only other parts of the world which will be -directly covered by our decision are the colonies. We are satisfied that what we are doing is in their best interests as well. All the Commonwealth countries have been consulted, and they will, of course, separately announce any action which they propose to take. Now for my last point. I have told you that we hope to get out of this change increased dollar earnings and a more stable pound sterling. It is essential, and I really mean essential, that none of us should do anything that will diminish in any way its effectiveness. You see, if any of us were to take steps that tended to increase the cost of production, and so the prices of our manufactures, we should be acting contrary to the very purpose for which we are making this change. Our sacrifices would be thrown away. Our aim is to hold our costs of production steady while we decrease the rate of exchange. Then, whatever the effects, we all share and share alike, everyone in the country. We do not pick upon special individuals or special industries to bear the whole burden through large-scale unemployment as happened after the First World War. But if some of us were to try and give ourselves special protection -against possible price increases or to take advantage of this event to try and profiteer or improve our relative position compared to our fellowcitizens, then the result could only be to make the whole weight of any increases in prices fall upon others. Our whole idea is to spread whatever burden there is fairly over everyone, so we must avoid anything that increases the costs of production. Indeed, we must continue with as much and even more vigour than ever the drive for greater efficiency .and lower costs of production. Call for Redoubled Efforts This change is not instead of all the policies we have already been following to earn more dollars, but in addition to them, because they of themselves have not been effective enough. Ido appeal most earnestly .and with all my strength to our manufacturers and exporters to redouble their efforts to sell our goods in dollar markets. There is not the slightest doubt that great opportunities for good returns now exist in the dollar markets for the right goods if they are sold in the right way. Do not let us lose the advantages of this change because we do not go all out to get the business. This is a step that we cannot and shall not repeat. It provides a great and immediate opportunity. Let us seize it eagerly -and with both hands. One other caution. If we succeed, as we must, in increasing our exports to the dollar area we must do nothing that would tend to make •our home prices go up because of inflation, as that would be most dangerous both for our own standard of living and for our .prospect of increasing our dollar earnings. That we must avoid. We must see that