INTERNATIONAL EFFECTS WHILE the internal effect of the suspension of the gold standard was comparatively moderate, its international repercussions were grave and widespread. The important part played by sterling in international finance and trade was only fully realized at the moment when it ceased to be an international currency. No financial event has produced such a tremendous effect allover the world and in every branch of economic life as the suspension of the gold standard in Great Britain. Its immediate effect was to aggravate the financial crisis, and to inflict heavy losses upon innumerable banks and commercial firms. In the long run, however, the consequences of the suspension of the gold standard in Great Britain are likely to prove highly beneficial. In fact, it is possible that the change may prove to be the turning point in the whole crisis. In the present chapter we shall confine ourselves to examining the immediate international effects.