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 ductive industries in this country, and rendering financial support in the early stages of development, ultimately undertaking the placing of the issue of new capital with the investor, and that the institution of a system of working arrangements between the members of this group and the various joint stock banks would be of great assistance.

These two documents, the Cunliffe Report and the Financial Facilities Report, thus pointed the way back to sanity in money matters along safe and cautious lines. In effect they told the Government to leave off the manufacture of new currency and credit and to re-establish our legal tender currency on the foundation laid by the Bank Act of 1844, and they told industry that the capital that it required should be found through the process of saving and investment instead of through the extension of bank credits. But they were very far from preaching drastic deflation and rapid contraction of credits. The Financial Facilities Report, as quoted above, only urged "some restriction" upon the creation of additional credit. The Cunliffe Report spoke of an "interim period beginning after the completion of demobilization, during which it is probable that the present issue of Currency Notes will have to be gradually reduced." It