The role of the treasury in the formation of British economic policy 1918-1925

Abstract

The role of the Treasury in the formation of British economic policy in the period 1918 to 1925 is one of considerable interest, both because the economic problems which confronted the British Government at this time were many, complex and often without close historical parallel, and because there was a considerable contrast in both the quality and the duration of experience between the Treasury officials and the Chancellors of the Exchequer. This study begins by studying the structure and nature of the Treasury, and goes on to examine five major- areas of policy in which the' Treasury was closely concerned. The topics studied include the Cunliffe Committee, whose reports formed the foundation for British post-war financial policy; the problems involved in a return to a peace-time economy, including the 'economy campaign' of mid-1919, in which Treasury advisers played a leading role; the development of inter-Allied debt policy which led up to the publication of the Balfour Note in 1922, in which a Treasury official played a prominent part; and the restructuring of the National Debt during this period carried out by the Treasury. Finally, the Treasury's role in the return to gold is examined. It is evident throughout that the Treasury's primary concern in the discussion of any policy was its desire to return to the Gold Standard with all possible speed. Further, Treasury officials always advised following historical precedent wherever possible. But it is apparent that there was strong support among informed contemporaries for the Treasury views, nor is there evidence to suggest that the Chancellors would have looked favourably on unorthodox advice had it been offered.