ABSTRACT
Many of the monetary reform schemes which we have discussed are dismissed by the orthodox school, and also by less-prejudiced quarters, as Utopian dreams. The exchange clearing system cannot, however, be disposed of so lightly. For, although little is known about it in English-speaking countries, the system is actually operating to a more or less limited degree in twenty-five countries, including such important countries as France, Germany, Italy, Holland, Belgium, Switzerland and, since January 13, 1936, also in Great Britain. The first exchange clearing agreement was concluded in November 1931, so that the system has been applied in practice for some years. At the time of writing, there are seventy-seven exchange clearing agreements in operation. In face of these facts it is difficult to denounce the system as impracticable. Its existence cannot be denied. The question is whether it can be extended and improved in accordance with the schemes put forward by those who believe in international clearing. From this point of view, the progress of the system has been most encouraging.
