... It is some four months, Mr Chairman, since I spoke at the Mansion House in London about the monetary situation. It is always rash to pronounce judgment on the events of any recent period, and any final view about the effects of monetary policy in 1960 can only be reached much later. On present evidence I would claim that in 1960 monetary policy achieved a considerable part of its objective. I accept at once the criticism that credit restriction takes a long time to work through and that its incidence tends to be unfair, particularly in that present arrangements put a heavy share of the burden of credit restriction on the organised banking community. I also accept-indeed it is a theme which I have myself argued for many years past-that monetary policy cannot cure all ills and that it is a great mistake to expect it to carry loads which should be carried in other fields of government policy. Though it has a strong contribution to make to both, monetary policy cannot by itself ensure either the internal stability of the currency or the health of the balance of payments.
Extract from the Governors speech to the Institute of Bankers in Scotland 9th February 1961