GOLD FOR NOTES.
Most people think that anyone can legally demand gold for bank notes, from the Bank of England. This is not so. Before the war, when the gold standard was based on a rule which provided that, the Bank of England nolo issue most be backed np by a certain amount of gold held by the Bank, it could be done, but when war broke out the gold standard could not be observed. As was, formerly the case, the Bank is now under no obligation to redeem its notes in gold, and the Treasury have- issued Treasury Notes to the value of d-lfi millions, which are legal tender tor the payment of debts. Neither can the holders of these demand that they should be redeemed in gold. The final blow was dealt to the gold standard on April 1, 1919. when the export of gold was prohibited. Now tnat our gold reserves have fallen very low—it Ls estimated that at the moment they only amount to some twenty million pounds—the Government have prohibited the export. Consequently, we must do our foreign business by the export of goods or on credit.
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Bibliographic details
Star (Christchurch), Issue 12757, 29 September 1919, Page 10
Word Count
192GOLD FOR NOTES. Star (Christchurch), Issue 12757, 29 September 1919, Page 10
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