MECH has been written about the advantages of the Sterling Bloc from Great Britain's point of view, and it would be idle to deny the advantages of our being able to trade with countries whose currencies bear a stable ratio to sterling. For that reason, and because of the international benefits of the position of sterling as the centre of an important international monetary union, official quarters in London have always attached great importance to maintaining and strengthening the Sterling Bloc, says Paul Einzig in "The Financial Times."
The embargo on foreign loans was relaxed in 1933 in favour of issues made for the benefit of Sterling Bloc countries, in order to strengthen their foreign exchange reserves and thereby to enable them to maintain the stability of their currencies in relation to sterling. Very little use, however, _|was made of this arrangement, in practice, for the simple reason that most Sterling Bloc countries have a favourable balance in relation to Great Britain. Consequently, there is no need for thei alto raise sterling by issuing loans in London.
Nevertheless, the adoption of the principle was important as an indication of the stress laid in official quarters on the conception of the
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