Sound Currency Association
Encyclopedia
The Sound Currency Association was a British pressure group formed in early 1920 as a result of a conference of bankers, traders and economists held in December 1919 to consider the financial outlook which seemed to observers to be particularly grave.
The main purpose of the Association was to campaign for the concept of Sound money and to persuade the Treasury
to contract gradually the issue of Treasury notes so they should once again have an equal value to the gold which they represented. This objective was achieved when Winston Churchill
, as Chancellor of the Exchequer
, returned Britain to the Gold Standard
in 1925. The Association also campaigned for public awareness of the dangers of inflation
and the need for monetary stability. Even after the return to the Gold Standard the Association continued as a pressure group for sound money until the decision to transfer the Treasury note issue to the Issue Department of the Bank of England
.
The first president of the Sound Currency Association was Lord D’Abernon
who was in office from the formation of the Association until his appointment as British Ambassador to Berlin in 1923. He was succeeded by Lord Beauchamp
. Chairman of the Executive Committee of the Association throughout its whole existence was David Marshall Mason
, Liberal
MP for Coventry
from 1910-18 and Edinburgh East
from 1931-35.
The Association was officially wound up at a special meeting of its executive committee in late December 1928 in a formal debate initiated by Sir Hugh Bell. Churchill was among those congratulating the Association on its work and achievements.
The main purpose of the Association was to campaign for the concept of Sound money and to persuade the Treasury
HM Treasury
HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
to contract gradually the issue of Treasury notes so they should once again have an equal value to the gold which they represented. This objective was achieved when Winston Churchill
Winston Churchill
Sir Winston Leonard Spencer-Churchill, was a predominantly Conservative British politician and statesman known for his leadership of the United Kingdom during the Second World War. He is widely regarded as one of the greatest wartime leaders of the century and served as Prime Minister twice...
, as Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
, returned Britain to the Gold Standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
in 1925. The Association also campaigned for public awareness of the dangers of inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
and the need for monetary stability. Even after the return to the Gold Standard the Association continued as a pressure group for sound money until the decision to transfer the Treasury note issue to the Issue Department of the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
.
The first president of the Sound Currency Association was Lord D’Abernon
Edgar Vincent, 1st Viscount D'Abernon
Edgar Vincent, 1st Viscount D'Abernon, GCB, GCMG, PC, FRS was a British politician, diplomat, art collector and author.-Early life:...
who was in office from the formation of the Association until his appointment as British Ambassador to Berlin in 1923. He was succeeded by Lord Beauchamp
William Lygon, 7th Earl Beauchamp
William Lygon, 7th Earl Beauchamp KG, KCMG, PC , styled Viscount Elmley until 1891, was a British Liberal politician. He was Governor of New South Wales between 1899 and 1901, a member of the Liberal administrations of Sir Henry Campbell-Bannerman and H. H...
. Chairman of the Executive Committee of the Association throughout its whole existence was David Marshall Mason
David Marshall Mason
David Marshall Mason was a Scottish Liberal, later Liberal National politician, banker and businessman.-Family and Education:...
, Liberal
Liberal Party (UK)
The Liberal Party was one of the two major political parties of the United Kingdom during the 19th and early 20th centuries. It was a third party of negligible importance throughout the latter half of the 20th Century, before merging with the Social Democratic Party in 1988 to form the present day...
MP for Coventry
Coventry (UK Parliament constituency)
Coventry was a borough constituency which was represented in the House of Commons of England and its successors, the House of Commons of Great Britain and the House of Commons of the United Kingdom....
from 1910-18 and Edinburgh East
Edinburgh East (UK Parliament constituency)
Edinburgh East is a burgh constituency of the House of Commons of the Parliament of the United Kingdom. It elects one Member of Parliament by the first past the post system of election....
from 1931-35.
The Association was officially wound up at a special meeting of its executive committee in late December 1928 in a formal debate initiated by Sir Hugh Bell. Churchill was among those congratulating the Association on its work and achievements.
Sources
- The Times, 24 December 1928 p.8
- Irving Fisher & Hans R. L. Cohrssen, Stable Money: A History of the Movement - Adelphi Company, 1934