The Enemy Within the British Empire [02/02]: A Short History of the Bank of England

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The Enemy Within the Empire:

A Short History of the Bank of England

By Eric D. Butler. (Part 02)

THE CZECHOSLOVAKIAN GOLD EPISODE

What is now known as the famous "Czech Gold Incident" further demonstrated the power of the Bank of England and the Bank of International Settlements. It also demonstrated the fact that the British Government had no control over the actions of the Bank of England. When the Nazi machine crashed into Czechoslovakia in September 1938, it took the assets of the Czechoslovakian National Bank. Approximately £5,000,000 worth of Czech gold held by the Bank of England was transferred to Germany, with the result that, when this fact became known, there was an uproar in the British House of Commons.

The following extracts from the Sydney Morning Herald of May 24, 1939, speak for themselves:

"The Secretary for Mines, Mr. Crookshank, said in the House of Commons that the Government had no power to restrain the movement of gold held in the Bank of International Settlements on behalf of the Czechoslovakian National Bank. . . . This means that more than £5,000,000 worth of Czech gold deposited in the Bank of England for the Bank of International Settlements will be transferred to Germany. . . .

The City Editor of the 'News-Chronicle' says:

'. . . It now turns out that more than £5,000,000 was, in fact, released, although not by agreement with the Treasury, BECAUSE THIS WAS NOT REQUIRED." (My emphasis.)

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