October 1931
FEDEEAL RESERVE BULLETIN
OCTOBER, 1931
571
FOREIGN BANKING AND BUSINESS CONDITIONS
SUSPENSION OF THE GOLD STANDARD IN GREAT BRITAIN
Announcement was made by the British
Government on Sunday, September 20, that
a decision had been reached to suspend the
gold standard which had been resumed in
April, 1925. On September 21 the necessary
legislation, consisting in suspension of that
part of the gold standard act, 1925, which
required the Bank of England to sell bar gold
at a fixed price, went through all the stages in
both Houses of Parliament. Royal assent was
given on the same day. The text of the law
follows:
GOLD STANDARD (AMENDMENT) ACT, 1931
1. (1) Unless and until His Majesty by proclamation
otherwise directs, subsection (2) of section one of the
gold standard act, 1925, shall cease to have effect,
notwithstanding that subsection (1) of the said section
remains in force.
(2) The Bank of England are hereby discharged
from all liabilities in respect of anything done by the
bank in contravention of the provision of the said
subsection (2) at any time after the eighteenth day of
September, 1931, and no proceedings whatsoever shall
be instituted against the bank or any other person in
respect of anything so done as aforesaid.
(3) It shall be lawful for the Treasury to make, and
from time to time vary, orders authorizing the taking
of such measures in relation to the exchanges and
otherwise as they may consider expedient for meeting
difficulties arising in connection with the suspension
of the gold standard.
This subsection shall continue in force for a period
of six months from the passing of this act.
2. This act may be cited as the gold standard
(amendment) act, 1931.
The subsection suspended by the present law,
viz., subsection 2 of section 1 of the gold standard act, 1925/ reads as follows:
1. (2) So long as the preceding subsection remains
in force, the Bank of England shall be bound to sell
to any person who makes a demand in that behalf at
the head office of the bank during the office hours of
the bank, and pays the purchase price in any legal
tender, gold bullion at the price of 3 pounds, 17 shillings and 10?/£ pence per ounce troy of gold of the
standard of fineness prescribed for gold coin by the
coinage act, 1870, but only in the form of bars containing approximately 400 ounces troy of fine gold.
Subsection 1, which remains in force, provides that the Bank of England is not bound
to redeem its notes in gold coin and that the
notes continue to be legal tender; also that free
coinage of gold at the mint, except bullion
coined for the Bank of England, is suspended.
i The full text of the gold standard act, 1925, was published in the
FEDERAL KESERVE BULLETIN, June, 1925, p. 375.
ANNUAL REPORT OF THE NATIONAL BANK OF ALBANIA
The annual report of the National Bank of the League of Nations in regard to the estabAlbania for 1930 was presented to the general lishment of central banks in the difficult postmeeting of shareholders on April 29, 1931. war period of currency reorganization. It may
Sections of the address of the president and of well be considered a flattering recognition of
the report of the board of directors are given the work which the National Bank has performed that this institution was invited to
herewith:1
The record of the past five years in Albania participate in the Bank for International Settleshows the steady development of the activity ments, which—in addition to the original
of the National Bank, the gradual putting into founders, comprising the leading banking orcirculation of the new gold standard currency, ganizations of the more important countries—
the judicious extension of credit in support of admits to participation only the central banks
sound commercial initiative, and the conspicu- of countries in which the currency satisfies all
ous strengthening of the reserves held against the practical requirements of the gold or gold
exchange standard.
notes in circulation.
No detailed survey- of the results obtained in
Policy of the bank.—The principles which
have hitherto inspired the policy of the bank, the more than five years of the activity of this
and have been an important element in its institution need be presented here; this has been
continued stability, are in harmony with the done by the board of directors at each annual
recommendations of the financial committee of meeting. It will be more useful to outline what
still remains to be accomplished—in logical seThe report, available in Italian, contains in addition tables showing quence to the program which has hitherto been
the operations of the bank in detail, as well as sections dealing with the
condition of the various crops, the building and electrical industries, followed—and, first of all, in respect to t b '
mining, petroleum, foreign trade, etc. For the report for 1928 see FED- reorganization of the fractional currency,
ERAL RESERVE BULLETIN for August, 1929.
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