0 the amount of gold held by a national bank, used for dealing with the national banks of other countries
I hear someone whispering that we must have a gold reserve.
We therefore had a simultaneous rise in our gold reserve and in our sterling liabilities.
I come finally to the gold reserve situation.
Elasticity of gold reserve is necessary to prevent the world price level from being disturbed by international monetary demands.
We shall certainly lend overseas more than that £100 million, the consequence being that our gold reserve will go down.
The second point is that the gold reserve should be kept liquid, even at the cost of the loss of interest.
One of those rules was that there should be some fixed relationship between paper currency and gold reserve.
The gold reserve today is far too small.
