Gold Standard Act 1925
| Jurisdiction | UK Non-devolved |
Gold Standard Act, 1925
(15 & 16 Geo. 5.) CHAPTER 29.
An Act to facilitate the return to a gold standard and for purposes connected therewith.
[13th May 1925]
Be it enacted by the King's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
1 Issue of gold coin suspended and right to purchase gold bullion.
(1) Unless and until His Majesty by Proclamation otherwise directs—
(a ) The Bank of England, notwithstanding anything in any Act, shall not be bound to pay any note of the Bank (in this Act referred to as ‘a bank note’) in legal coin within the meaning of section six of the Bank of England Act, 1833 , and bank notes shall not cease to be legal tender by reason that the Bank do not continue to pay bank notes in such legal coin:
(b ) Subsection (3) of section one of the Currency and Bank Notes Act, 1914 (which provides that the holder of a currency note shall be entitled to obtain payment for the note at its face value in gold coin) shall cease to have effect:
(c ) Section eight of the Coinage Act, 1870 (which entitles any person bringing gold bullion to the Mint to have it assayed, coined and delivered to him) shall, except as respects gold bullion brought to the Mint by the Bank of England, cease to have effect.
(2) So long as the preceding subsection remains in force, the Bank of England shall be bound to sell to any person who makes a demand in that behalf at the head office of the Bank during the office hours of the Bank, and pays the purchase price in any legal tender, gold bullion at the price of three pounds, seventeen shillings and tenpence halfpenny per ounce troy of gold of the standard of fineness prescribed for gold coin by the Coinage Act, 1870, but only in the form of bars containing approximately four hundred ounces troy of fine gold.
2 Power for Treasury to borrow for exchange operations.
(1) Any money required for the purpose of exchange operations in connection with the return to a gold standard may be raised within two years after the passing of this Act in such manner as the Treasury think fit, and for that purpose they may create and issue, either within or without the United Kingdom and either in British or in any other currency, such securities...
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