It is now widely recognized that the future must see far-reaching changes in our monetary system, and that these changes must be in the direction of a conscious and planned management, as distinct from leaving the system to be regulated in a more or less automatic manner by factors which reflect and are governed by international conditions; that the monetary system should in fact be made to serve and not govern the requirements of the economic system.

This changed view of the function of the monetary system is probably mainly the result of two economic phenomena which were witnessed in the ten years preceding the war.