tion had again to be suspended in the latter year. In 1924 the mean value of the Krone in relation to Sterling was 31:71 (parity 18:16). The sharp fluctuations in exchange created uncertainty and crisis-like conditions in many directions, and had a particularly unfavourable effect on national finances. The Budgets, which had been greatly inflated during the war boom — from Kr. 123 millions in 1913/14 to Kr. 745 millions in 1920/21 — had to be reduced. But these budgetary reduc- tions could not be effected at the same pace as the assessable income and other bases of taxation began to give way; and the result was heavy budget deficits and a consequent increase of the national debt. The endeavours of the Storting and the Government to restrict national expenditure led, however, to a substantial reduction of both expenditure and the budget deficit in 1925. But the work of financial readjustment had to be continued, and this affected also the salaries of government officials, which had to be reduced. Private employers, too, found it necessary to effect cuts im salaries and wages, and this led in some instances to protracted and costly labour conflicts. The position gradually improved, with the result that the Bank of Norway was able to return to the gold standard on May 1, 1928. Some consid- erable time before this the position of the Krone had improved to such an extent that its reinstate- ment on a gold basis was merely a confirmation of the value it had already got. Payment in gold 32