Is it absolutely necessary to issue a _limited_ amount of Treasury or other legal tender notes based on gold? Or may the amount be unlimited? In a war of world-wide magnitude, the Government and the nation had to take account of the vital fact that, not only might our commerce be destroyed by the enemy’s navy, but that it might be impossible to bring gold over to this country. This had to be foreseen and provided for. The joint stock banks, however high their gold reserves, could not alter this. Therefore it was necessary, apart from these reserves, to meet immediate emergencies by the issue of legal tender notes. Though afterwards the Bank of England was credited with enormous amounts of gold, this gold did not come to London. It was placed to the Bank’s account, or credit, in South Africa, Australia, and Ottawa. This restricted probably the supply of gold coin at a time when there was an unprecedented demand for small currency for our military requirements and in our vast military camps. Though some industries may have slowed down greatly, others worked at high pressure, thereby probably more than offsetting the inactivity of others. And allowance must be made for the thousands called to the colours who might otherwise have been parasites. By joining the army their aggregate consumptive powers increased. All these developments had to be pre-calculated, apart from the positions of the joint stock banks and their preparations for panic. It was not the time to hoard gold, but to see that legal tender currency was provided in ample measure. Ample measure is not superabundance, and if the needs were just met nothing further was necessary. Assuming, therefore, that they were just met and no more, we may ask whether or not it would be wise to withdraw the notes when the war is over and normal conditions are restored. It is, perhaps, too early to reply in dogmatic fashion.