PAPER PRICES 
103 
Let copies of this Minute be transmitted to the 
Banks of England and Ireland, the Bankers’ Clearing 
House Tommittee, and the Comptroller and Auditor- 
Gene ~~ let copies be presented to both Houses 
of © 
In estimating the importance of this document 
and of the Cunliffe Committee which inspired it, 
we must remember that the obligation of the Bank 
of England to keep 100 per cent. cover against all 
notes issued above a certain fixed amount had taken 
on a new and much greater importance since conver- 
tibility into gold coin freely exportable and meltable 
had been taken away during the War. Before the 
War, if the ~-n per cent. requirement had been 
abrogated, _.::. Notes would still have been limited 
by the existenc : ¢f convertibility to whatever amount 
could be kent in circulation without depreciation. 
Convertibilit seing removed by the circumstances of 
the War and ‘ie regulations made under the Defence 
of the Realm “=f, the requirement of 100 per cent. 
cover became “he only limit. So long as sovereigns 
or other gold cam= in to the Bank without any pre- 
mium, the 2inl: Note issue did increase, but this 
source was drying up and certain to become negligible 
before long, and aller that the Bank Note issue 
must become an amount incapable of appreciable 
increase until the depreciation of the paper against 
gold disappeared. Thus the Cunliffe Committee 
had no need to trouble about Bank Notes. 
The scheme consequeni*!v put a limit on the whole 
paper curren~  T'~ To —--nt was not likely to 
buy gold - ee “2inst additional 
Currenr * as the amount 
of Ba “-L >xplained, 
tobuy or - —wsticnal Currency 
Notes wo" at Tie mablic would have