why woulitbandonthe stability of the gold stanrd?ore t gat war the go standard symbolized stability and prosperity and the british pound was considered "as good as gold." but in 1925, parliament set the exchange rate of theound for gold beyond its real value. as a result, british goods became more expensive -- exports declined factory workers were laid off. england's economy began to unravel. in 1931, the governmentollapsed. a new government broke with tdition. england went off the gold staard and devaed theound sacrificing internatiol status for domestic recovery. but for the rest of the world,the financial repercussions weretaggering. [ shouting in french ] newsreel announcer: the shouting of frantic brokers reflects the deluge of wires from all parts of the globe. what is the pound worth today? schoumacher: with the stroke of aen those european banks which had been holding pounds lost millions. reacting to what he called the "earthquake in europe," president herbert hooverproclaimed america's steadfastness to the gold standard. bu