quality:correction
First world war: suspension of the gold standard

The gold standard was suspended at the outbreak of First World War in 1914, with Bank of England and Treasury notes becoming legal tender. Before that war, the United Kingdom had one of the world's strongest economies, holding 40% of the world's overseas investments. But after the end of the war, the country was highly indebted: Britain owed £850 million (about £ 52.3 billion today) with interest costing the country some 40% of all government spending. The British government under Prime Minister David Lloyd George and Chancellor of the Exchequer Austen Chamberlain tried to make up for the deficit with a deflationary policy, but this only led to the Depression of 1920–21.

By 1917, production of gold sovereigns had almost halted (the remaining production was for collector's sets and other very specific occasions), and by 1920, the silver coinage was debased from its original.925 fine to just.500 fine. That was due to a drastic increase in silver prices from an average 27/6 d. per troy pound in the period between 1894 and 1913, to 89/6 d. in August 1920.