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 as it was before the war, is now a matter of ancient history. We are trying to struggle back to something like it, through a chorus of obstructive and objurgating critics who would rather try new systems. One of the objects of this book is to remind readers who are not versed in such matters of the benefits that our old system wrought for us, to show how it was twisted out of shape, and to put before them some of the proposals of the critics and reformers.

Before the war then our monetary system was based on gold, and the pieces of paper—notes and cheques—by which most of our large transactions were paid for, were claims to so much gold which the holder could turn into gold if he wanted to do so.

Our "legal tender" money—that is, money in which creditors were obliged to accept payment—consisted of golden sovereigns and half sovereigns and Bank of England notes, which were practically gold certificates. Silver and bronze coins were legal tender up to forty shillings and one shilling respectively.

Though practically a gold certificate, the Bank of England note issue was not wholly backed by gold in the Bank vaults; part of it was what is called "fiduciary," that is,