§ 25. Mr. CURRIEasked whether the issue of Treasury Notes is to be regarded as limited to a fixed maximum amount; and whether such maximum point can, with due regard to the public interest, be stated, or whether it is in contemplation that the issue be indefinitely extended?
§ Mr. BONAR LAWCurrency Notes are only issued in response to actual public demands for circulation. There is no fixed maximum to the amount which may be issued, nor would it be possible in present circumstances to impose such a maximum without serious disturbance to credit conditions. The situation is being carefully watched by the Government, and it is certainly not intended that the expansion should be allowed to continue indefinitely, but I am not prepared to commit myself to the opinion that it will be possible to check the automatic increase which is now taking place, while war conditions continue.