ABSTRACT
The completion of the new Government's work will be the restoration of trade in this country. A suspension of gold payments by a Socialist Government would have been one thing. But suspension by the National Government committed to retrenchment and reform is another. The Socialist Government would have had to go off the gold standard with an unbalanced Budget and might never have returned to it. The National Government has been compelled to go off the gold standard with a balanced Budget though with an unbalanced trade account. The Treasury and, on its behalf, the Bank for International Settlements (BIS) increasingly did directly what Morgan's previously did for them indirectly. Investigations and hearings before the Senate Committee on Banking and Currency in 1932–1933 resulted in revelations which tarnished Morgan's reputation even though its misdeeds were in the domestic not the foreign sphere.
