We must take into consideration that we may never again see a world-war and never again face a crisis such as we faced in August last. But I see no powerful objection to the notes remaining. We may regard them as the nucleus of the nation’s reserve fund, the liquefying of its hidden credit, or wealth reserve, as the veritable “I believe” in the immeasurable potential wealth of the country. The War Loan is another such reserve, a reserve representing the present and future credit, or wealth, of the country. The country’s potential wealth is the security behind it. And the Treasury note issue may be regarded as part of the loan, for the gold “ear-marked” against it has probably come out of that loan. If the notes were redeemed and the gold released again, the gold would go into circulation and form part of the banks’ reserves as before. By retaining the gold the Government would have that store of gold which critics have been asking for. So far as they are concerned, therefore, their wishes would be fulfilled. They could gaze with satisfaction on this store of gold, for the delicate problem has been solved as to who should buy it and store it and bear the expense of it. Evidently it is the intention to have a gold reserve equal to 100 per cent. of the notes in issue. I see no urgency in this, no vital necessity. The notes could be based partly on gold and partly on Consols. I think a reserve equal to 50 or 60 per cent. in gold would be ample. If posterity is to benefit more from the war than the present generation, why should it not bear a goodly part of the burden? It may be objected that Consols are a depreciating security. They are an appreciating security also, and years hence they may have a much higher value than they have now. Gold also appreciates and depreciates continually, measured by the prices of securities and commodities. And the entire wealth of the country is constantly appreciating and depreciating. If the credit of the nation years after the war becomes much higher than it is now, then to secure the notes on the credit of the nation is to secure them on something that will rise in value. This issue would not be like the varieties of paper issues in Germany, whose credit has depreciated and will continue to depreciate as her wealth diminishes and becomes less negotiable. She cannot, as we can, pay for goods entirely with goods, owing to the destruction of her commerce. She must pay in gold; in other words, she must live on her capital. And she cannot live on her capital and speedily renew it. There must be considerable destruction, because it cannot quickly reproduce itself.