THE "GOLD RUSH" 125 holders were much more inclined to change their minds and transfer their funds at a moment's notice than they were in normal conditions. Unsettled conditions in international trade, causing frequent and unexpected fluctuations in trade balances, were yet another factor which tended to increase gold requirements. Moreover, the price level was above its pre-war figure by something like 50 per cent, which in itself accounts for a considerable increase of requirements. Other things being equal, this would have increased the requirements of gold for the purpose of note cover to a corresponding extent. In reality, the increase of the note circulation was, in many countries, well in excess of the ratio of the increase of prices. Thus the cover of the note circulation, on the basis of the prewar ratio of gold reserve, required a much larger amount of gold than before the war.