ABSTRACT
IN the spring of 1919 the retail price index stood at almost exactly double the figure at which it had stood when war broke out in 1914. Britain was still, formally at any rate, on the gold standard; and prices were still rising. If the British adherence to gold was to be more than a formality—if, that is to say, the various obstacles which had been put in the way of melting and exporting gold sovereigns were to be removed—there would have to be a very severe restriction of credit. 'To start peace with a trade depression seemed an appalling prospect.'1 Accordingly, Britain announced the formal abandonment of the gold standard on March 31, 1919.
