Mr. Chamberlain announced on Monday that the Govern- ment would
adopt the main proposals made by Lord Cunliffe's Committee on Currency. The chief of these is the proposal to restrict future issues of currency notes in any year to the maximum amount issued in the preceding year. This year, according to the Timm, the maximum amount outstanding at any moment has been £320,000,000. Next year, therefore, the issue of currency notes must not exceed that figure, and will, we trust, be very much- less. The sooner this mass of paper money, backed by an exiguous gold reserve, can be
reduced, the sooner will the American and neutral exchanges rise in our favour and bring down prices. The mere fact that the issue is now to be limited is highly important, and should have a beneficial effect on the money market. Unlimited issues of paper money have led to general chaos in Russia and to confusion in Central Europe.
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