orm of the Weekly Statement of the
Bank of England, giving, it may be added, a good deal more detail
than Sir Edward's revised balance-sheet affords. But concerning his
proposal to reconstruct our system of note issue on a foreign model,
there is certain to be much difference of opinion. In the first place,
owing to the development of our system of banking by deposit and
cheque rather than by issue and circulation of notes, the note issue
is not nearly so important a business in normal times in this country
as it is in Germany and France. Moreover, the check imposed upon our
banking community by the need for an appeal to the Treasury before it
can extend its note issue beyond a certain point often acts with, a
salutary effect, and the view has even been expressed that if that
check were taken away from our system it might be difficult, if not
impossible, to maintain the gold standard which has been of such
enormous value in building up the prestige of London as a financial
centre. I do not think there is much weight in this argument, since,
under Sir Edward's plan, the note issue could only be increased
against discounts, and the Bank, by the charge that it made for
discounts, would still be able to control the situation. From the
practical point of view of the present moment, a strong objection
to the scheme is that it would open the door to fresh inflation by
unrestricted credit-making just when the dangers of this process are
beginning to dawn even on the minds of our rulers.

VII

THE COMPANIES ACTS

_March_, 1918

Another Government Committee--The Fallacy of imitating
Germany--Prussianising British Commerce--The Inquiry into the
Companies Acts--Will Labour Influence dominate the Report?--Increased
Production the Great Need--Will it be met by tightening up the
Companies Acts?--The Dangers of too much Strictness--Some Reforms
necessary--Publicity, Education, Higher Ideals the only Lasting
Solution--The Importance of Foreign Investments--Industry cannot take
all Risks and no Profits.

Every week--almost every day--brings with it the announcement of some
new committee considering some question that may, or may not, arise
now or when the war is over. Especially in the realm of finance has
the Government's output of committees been notably prolific of
late. We have had a Committee on Currency, a Committee on Banking
Amalgamations, and a Committee appointed, humorously enough, by the
Ministry of Reconstruc