The Pound was the fulcrum of the international gold standard and the world's reserve currency of choice during the century leading up to World War I. But all this did not prevent Britain from debasing it during the four years of conflict. After the war the pound was re-pegged to gold at an overvalued rate that failed to recognize the deterioration in its fair value. Additionally, the US and France accumulated gold in violation of the gold standard system. These dysfunctions led to a drying up of gold flows into Britain and eroded the Pound's credibility as a reserve currency. This is the first of two articles tracing the events leading to the Pound's break from the gold standard.