Credit money; money no part of which is supported by redemption in metallic reserve. Paper money issued on the credit of a bank or government is fiduciary currency. Theoretically, all currency is fiduciary currency in the United States since no currency is domestically redeemable into the standard monetary metal (gold).
The Bank of England's note issue as provided by the Bank Act of 1844 was a partially fiduciary issue, consisting of a limited authorized amount covered by government securities with any note issue in excess thereof fully covered by gold. Since September, 1939, when all gold in the Bank of England's Issue Department was transferred to the exchange equalization account, the Bank of England's note issue has been covered practically entirely by government securities. Thus in English terminology, the note issue is largely fiduciary issue.
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