r18 
MONEY 
in exchange for additional gold, which sharply limited 
their amount. But the Currency notes, until December, 
1919, were issued without any limitation at all, so that 
unlimited depreciation was possible. 
From April, 1925, the gold standard was restored. 
The Government ceased at once to exercise its power of 
preventing the export of gold, and the Act which gave 
it that power was allowed to expire at the end of the 
year. The Gold Standard Act, 1925, abolished the right 
of holders of gold bullion to have it coined into sovereigns 
by the Mint and the right of holders of Bank of England 
notes and Currency notes to demand sovereigns from 
the Bank, but left untouched the right of holders of 
gold bullion to demand Bank of England notes from the 
bank at £3 17s. 9d. per standard ounce, and gave the 
holders of Bank of England notes and Currency notes 
the right to demand in exchange bars containing 400 oz. 
of fine gold at the rate of '{3 17s. 104d. per standard 
ounce. 
So far as standard is concerned, the difference between 
this system and that in force before the war is practically 
nil, The holders of gold bullion desirous of convert- 
ing into pounds are in as good a position as before, 
since they always preferred the Bank’s immediate 
£3 17s. od. to the Mint's delayed £3 17s. 103d.: the 
holders of notes desirous of converting pounds into free 
gold bullion are in a very slightly better position than 
they were, as they can now legally demand the absolutely 
full weight of gold at £3 17s. 103d. whereas formerly the 
bank could satisfy their demand with sovereigns and 
half-sovereigns which might be a little below that weight 
owing to abrasion within the legal limit. The few 
holders of sovereigns and half-sovereigns, which remain 
legal tender, are in the same position as before the war, 
except that the right of melting the coin has not been 
restored, a matter of little practical importance even 
if the law were capable of enforcement against the very 
small jewellers and others who alone are likely to find 
it convenient to melt the very few gold coins likely to 
come into their possession. 
The object aimed at by the change was to prevent