IN the midst of military, diplomatic, and political turmoil, the responsible departments of the Government paid very necessary attention to finance. In the course of an interesting speech in the House of Commons on August 26th, Mr. Lloyd George showed that he was looking after the financial and commercial welfare of the country. His speech ranged over a variety of subjects, and he indicated that the new £1 and 10s. notes would in time be regarded as a recognised part of the regular currency, and that they would not be entirely supplanted by the coming issue of certificates. As to the latter, the Chancellor of the Exchequer stated that their object was really to create credit. This might be considered, if taken literally, a somewhat dangerous statement; but the hope was generally expressed that care would be taken in granting these certificates and preventing their over issue. As this speech was of considerable importance, a quotation from the official reports is given below: The Chancellor of the Exchequer said he did not know why there should be any scarcity of silver. It was not due to any shortage of the issue from the mint, and it looked as if there had been some hoarding, a very stupid thing. When the public got more accustomed to the 10s. and £1 notes there would be less difficulty in getting silver. With regard to the design of the new notes they would be totally different from the designs of the Scottish notes, some of which were beautiful. They had had to consider a good many things, such, for instance, whether the notes would be easily forgeable. Then they must have a watermark which could be easily seen. For these reasons they had had to disregard the very artistic designs of the Scottish notes. It was much more difficult to imitate simplicity. Therefore, they had decided in favour of the simple note because once they had started this currency it might very well become quite popular and part of the regular currency. With regard to the certificates the object was really that they should rather create credit without issuing the actual notes. It was purely a certificate that the banks were entitled to so much currency. They need not draw upon it, although they could, and the knowledge that they had got so much credit at the Treasury enabled them to make their arrangements for financing the trade of the country. A question raised by Sir A. Markham with regard to the clearing of German notes touched a very difficult, dangerous, and delicate operation. The real danger was that somehow or other bills which were due for this country to Germany might be honoured. For that reason they had to take very great care that the transaction was not one-sided. He hoped to be able in the course of the next few days to set up some form of machinery that would attempt the operation, but they must take very good care that they were not financing the enemy. Certificates would only cover the case of banks; they would not cover insurance companies.