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 have brought into being if its effect had not been checked by deliberate control.

The Committee also observed that, in view of the comparison with the systems prevailing in foreign countries which have been put forward by various witnesses, it wished to point out that these countries did not in practice maintain the absolutely free gold market which this country by reason of the vital importance of its position in international finance was bound to do.

It then summed up strongly in favour of the old system—absolute restriction of legal tender except in so far as it could be increased by an addition to the gold stock of the country by imports from abroad. In doing so it decided in favour of a policy which is naturally disconcerting to bankers, producers and distributors in so far as they regard their own convenience merely. Those who want to do business and finance business could do so much more comfortably if it is always possible to expand the supply of currency and credit whenever their convenience makes it desirable to do so. On the other hand unlimited expansion when carried to its logical conclusion produces economic chaos, and therefore obviously some sort of regulation is essential. The convention by which mankind used the precious metals