This question has been answered in part by the Government since the outbreak of the war. It helped the machinery to work, and provided against a possible collapse by issuing “emergency” currency notes. The Government having acknowledged an emergency and established a precedent, the problem is now much simplified. CHAPTER IV CREDIT AND CONFIDENCE Credit, which banks are said to create, has several connotations. It has a social, an ethical, and a financial connotation, and it is necessary to examine awhile these connotations. From the derivation, or original conception of the word, or idea, it is an expression of belief or trust, as distinct from disbelief and distrust. In the social world, when we say a person stands in high credit, what is it we imply? That he is a rich man, a man of great wealth? By no means. He may be a poor man, that is to say poor relatively to the position he occupies. In the social sphere he can carry considerable weight even though he may be dishonest, dishonourable and immoral. We ignore his vices, yet hold him in high esteem. His credit is based less on his character than on our snobbery. We bow before title and caste, irrespective of the merits of the individual. A lord of bad character will be more sought after, receive more flattery and deference, than a no-titled man of noble character. If we were not snobbish we should despise him as he deserves. From this springs the desire of men to gain title, no matter what means and methods they employ to this end. They know that a title in some potent way aggrandizes them, and they can enter an assembly with greater assurance and confidence and pomposity than they could if their names were still as plain as in their humble days. The conferring of a title is not necessarily a recognition of high moral worth. But a title can be a national recognition of intellectual merits, or ability. The credit of those who receive this distinction is strengthened. We have greater confidence than before in their intellectual ability and power. We have deeper trust in their wisdom and sagacity and in their counsel. We have the less hesitation in following their guidance in those paths with which they are presumed to be intimately familiar. In this greater, but still restricted, knowledge of theirs we repose our trust. We know that moral credit is distinct from this. It is based upon character solely, irrespective of social position or means. A poor man may be a man of high nobility. We may despise his poverty, but we honour his spirit. We are conscious that he is far beyond us, that we cannot reach the moral plane upon which he stands. He is a man in whose honesty, integrity, and conscientiousness we would place unquestioning trust. We know that in no circumstances would he disabuse that trust. We know that he would have the moral power to resist all temptation.