The Bullionist Controversy. The two great monetary debates of the classical era were (1) the Bullionist controversy that took place in the first two decades of the 19th century during and immediately after the Napoleonic Wars and (2) the Currency SchoolBanking School controversy during the middle decades of the century. The Bullionist controversy was provoked by events following a major policy shift in 1797. In that year, under the stress of the Napoleonic Wars, Britain left the gold standard for an inconvertible paper standard. A series of gold drains, coinciding with heavy military outlays abroad, extravagant government borrowing, and extraordinary wheat imports, had virtually exhausted the Bank of England’s gold holdings. The depletion of the Bank’s gold reserve thus forced the suspension of specie payments. The Bank was released from its obligation to exchange gold for currency at the fixed mint price, i.e., bank notes were no longer automatically convertible into gold. The suspension of specie payments was followed by a rise in the price of bullion, foreign exchange, and commodities in terms of paper currency. A debate then arose centering on the following issues: Was the pound depreciated? Was there inflation in Britain and if so, what was its source?