Dollar-Pound Exchange Rate in 1911

Historical USD/GBP Rate: 1911

In 1911, the U.S. dollar and British pound were on the classical gold standard, fixing the exchange rate at:

Context

• This parity held from 1791 (Coinage Act) through 1914, except during Civil War suspension (1862–1879).
• Gold content: $20.67/oz (US), £4.2474/oz (UK) → ratio 4.8665.
• Rate was maintained by gold arbitrage: if market deviated, gold flowed between NY and London.

What Changed in 1914

• WWI: UK suspended gold convertibility; pound floated.
• Pound fell to ~$4.76 by 1919; returned to gold at pre-war parity in 1925 (Churchill) – overvalued, caused deflation.
• 1931: UK left gold standard permanently; pound depreciated to ~$3.50.
• 1944: Bretton Woods fixed $4.03 = £1.
• 1971: Nixon ends gold convertibility; free float since.

Purchasing Power Comparison (1911)

• £1 in 1911 ≈ £150–£200 today (CPI/RPI).
• $4.87 in 1911 ≈ $160–$200 today.
• A £100/year income was middle-class; $487/year equivalent.