ABSTRACT
The gold standard was established in its purest and most automatic form, although there was always considerable management in its operation. This standard had been maintained for over two hundred years, with an interruption only during the Napoleonic Wars. The mechanism of monetary management has been strengthened by the establishment of an exchange equalisation fund to provide a safeguard against a recurrence of speculative movements such as aggravated the 1931 crisis. This new system is now reviewed, and an account is then given of the British Government's attitude towards the reconstruction of an international monetary system. The Exchange Equalisation Account was instituted under the Finance Act, 1932, to counteract some of the currency movements which had aggravated the monetary crisis of the previous year. The Genoa Conference, 1922, recognised the need in post-war conditions for continuous cooperation between the central banks of the chief countries to ensure the smooth operation of an international monetary system.
