It is a relief to have the decision of the
Government at last to fuse the Treasury notes with the Bank of England notes. The Bank of England will be authorized to issue 11 and 10s. notes, and when this is done the process of returning to the gold standard will be complete- A special Bill will be necessary. In this connexion we are glad to see a letter from Sir Alfred Mond, in the Times of Wednesday, explaining that the manifesto issued by the Industrial Conference between a group of employers and the General Council of the Trades Union Congress was not to be interpreted as an attack upon the gold standard. Sir Alfred thinks, however, that within the four corners of the gold standard much can be done (as the Federal Reserve Board of America has proved) to stabilize prices by means of credit. He considers the English way of observing the gold standard too rigid, and points out that most other countries have based themselves upon some modification of the more elastic American system. Many people after reading Sir Alfred Mond's explanation will still be afraid that he does not shut the door upon a dangerous inflation. As credit, however, is in the final analysis largely a matter of public confidence, we feel that the time has come for the public to be better informed. A competent commission of inquiry would be invaluable at this stage.
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