Pain

The harsh remedy of Britain's pound devaluation was beginning to take effect last week. The patients did not like it. Throughout the world, industry faced the fact that in the fight for foreign trade it would now have to compete for all it was worth with cheaper British goods. French Finance Minister Maurice Petsche proposed a Western European trade bloc to meet what he called British "commercial warfare."

By week's end, 24 nations had followed Britain in slashing the dollar price of their currencies. For some it was like pulling teeth. Belgium, with one of the hardest currencies in Europe, groaned and devalued by 12.3%. Among the holdouts were Switzerland, Italy and Pakistan, but all of them faced trouble exporting their goods at the old exchange rates. Few were in the monopoly position of Pakistan, which seemed to have decided that India could not get along without Pakistani jute and cotton and would have to pay at the pre-devaluation rate for them. (India promptly raised cries of "blackmail.")

The loudest cries of pain were heard in Britain itself. The government last week raised the price of nonferrous metals and of such humble objects as pots & pans. The first predictions of a 5% cost-of-liv-ing rise shot up to 10%. The trade unions were having Sir Stafford Cripps on the carpet, demanding wage boosts. The Tories charged that devaluation could have been avoided but for the Socialist government's mismanagement; Laborites replied that it was not so, asserted that they had devalued rather than cut Britain's welfare program and permit unemployment. Said one Labor leader: "The government preferred to devalue the pound rather than devalue the man."

This week Parliament convenes in special session. Labor faces stormy days. Said one Labor leader: "I've got indigestion from eating my own words on devaluation."

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