[20 
MONEY 
always deceived most foreign observers. The Act 
further provided that any surplus left in the Currency 
Note Account after these transfers to the Bank was to 
zo to the Exchequer, thus winding up the whole account. 
This scheme of course involved the disappearance of 
the ‘‘ Cunliffe limit,” so far as its curious use of the 
maximum fiduciary issue of the previous year was con- 
cerned. But the limit arrived at for 1928 is, so to speak, 
embalmed in the provision that the ‘ fiduciary issue ” 
(as the amount of Bank Notes of all denominations 
which need not be covered by gold is now officially as 
well as commonly called) shall be £260,000,000, since 
this sum was arrived at by adding the £245,000,000 
permissible for 1928 under the Cunliffe limit to the old 
twenty million fiduciaryissue of the Bank under the Act 
of 1844, and deducting five millions for notes expected 
to be thrown out of Ireland by the Free State’s decision 
to have a paper currency of its own. This £260,000,000 
may be varied by the Treasury on the request of the 
Bank, but a variation so made, if in the upward direc- 
tion, will not continue in force for more than two vears 
without parliamentary sanction. 
The profits of the whole of the issue (notes for £5 and 
upwards, as well as for £1 and 10s) have to be accounted 
for by the Bank and paid to the Exchequer. 
& -— 
J / 
% 
50 
$d 
: 2A 
Crp 
Abteilung 
Diunotiel 
1H 
A 
Printed in Great Britain by Butler & Tanner Ltd., Frome and London