Montagu Norman learned of the collapse of the gold standard when he reached Liverpool docks on the morning of 23 September 1931. The blow to the prestige of the Bank and the shattering of his plans for world capitalism came as a deep shock to him. He suffered another near breakdown, and sought medical advice before facing re-election for another two-year term as Governor.

Yet the break with internationalism was not as complete and decisive as it must have seemed at the time. Leaders of the industrial community, having united in demands for relief from further deflationary pressures and an active trade policy, were driven apart again by the political crisis brought on by the slump. TUC leaders lined up behind the shrunken but shrilly anti-capitalist Labour Party. Industrialists, appeased by the introduction of trade protectionism, united behind the Tory-dominated National government that controlled Parliament for the balance of the decade on the promise of keeping socialism in check. Meanwhile spokesmen for the City found their voices again and discouraged monetary and financial experimentation. Having split over the question of cheap money in the winter of 1931, the Bank and the Treasury also united against monetary initiatives at the Ottawa Conference in the summer of 1932. In 1933 Britain joined France in promoting currency stabilisation, while Franklin Roosevelt torpedoed the World Economic Conference by signalling new reflationary experiments. Subsequently the path was obstructed by the approaching war.