CHAPIER V 
THE - MONETARY CRISIS SINCE THE WAR OF IQI4 
§ 1. Consequences of the world-war from the monetary point 
of view. Inconvertibility of currencies. General dis- 
appearance of free export, and in some cases of free 
import, of gold. Disappearance of gold points and 
instability of exchanges. 
Tue war of 1914-1918 resulted in a general monetary 
crisis. As in the preceding chapter, no attempt will be 
made to examine the monetary problems of each country 
in turn. But it will be possible to outline the chief features 
of this period of general crisis, and to illustrate them by 
a few examples. 
The Great War not only affected the monetary systems 
of the belligerent countries ; it also affected many neutrals, 
even among the more distant; and it has culminated in a 
state of general exchange instability which directly or 
indirectly concerns the whole world. 
The beginning of hostilities caused many other 
countries besides the belligerents to give forced currency 
to the note issue either officially or in some disguised 
form, and to prohibit the export of gold. In most cases, 
this step was taken at once even in countries more or less 
distant from the seat of war, such as Scandinavia, the 
Argentine and Brazil, where the Conversion Offices were 
relieved of the obligation to give gold in exchange for 
notes. 
Even in most countries where notes have again become 
redeemable at home, e.g. Switzerland, the export prohibition 
has survived to this day, and thus the convertibility of 
paper can have no effect upon the exchange position. 
It is clear that wherever it was imposed the prohibition 
to export gold necessarily brought about the disappear- 
ance of the export gold points, and this made it possible for 
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