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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.
The gold reserve will be in bulk or in the form of sovereigns.
She has already lost half her gold reserve since military operations started, and her trade has dwindled.
I do not think it is practicable to increase the gold reserve held against currency notes at the present moment.
A gold reserve is very necessary to act as a sort of cushion to iron out the unevenness in the processes of international trade.
Briefly, since we have been deprived of some time, let us look at the gold reserve.
The gold reserve improvements of the past three months have nothing like replaced the gold losses of the summer and autumn.
Logically speaking, no gold reserve is absolutely required against them because notes are not now exchangeable for gold.
