Various monetary systems or monetary standards have been adopted in practice from time to time. These are (0) Bimctallism, (b) Munometallism, silver standard or gold standard. and (c) Paper Standard, Bimetallism has now only a historical interest. We shall discuss here gold standard,
words, one ounce of gold 11/12 fine could be coined into £3 17s. lOt d. in English money. Actually the Bank of England only gave £3 17s. 9d. for every ounceof such gold. To purchase an ounce of standard gold from the Bank, one had to pay £3 175. lOt d. per OL. Under this system. therefore, the purchasing power of a British sovereign could not rise appreciably above or fall appreciably below 123.27447 grammes of gold 11/12 fine or 113.11623 grammes of pure gold. This system could not be maintained during the World War of 1914-18, and had to be given up. Thereason was that. for the prosecution of war, paper money had to be issued on a very large scale and there was not enough gold with the Central bank to maintain convertibility of note issue. In A nl 1925, however, Great Britain restored the Gold Standard but of a different variety, viz., the Gold Bullion Standard.