Unlocking the Channels of Trade.

Press, Volume L, Issue 15047, 15 August 1914, Page 10

Unlocking the Channels of Trade.

Nothing is moro gratifying .in connexion ivith tho opening stages of tho war than the magnificent manner in which tho inevitable shook to credit and tho dislocation of trade-Kayo been handled by tho British Government, assistad and advised, no doubt, by tho greatest financial authorities in tho City of London. We have already commented ou the prompt a,nd vigorous manner in which the Bank of England roso to the* occasion and justified tho confidonce reposed in it by taking measures to prerent panic and keep up the supply oi' currency—measures which proved immediately effective. Then, thanks to our inviuciblo Navy, tho Admiralty is now able to announco that tho chief sea routes of commerce areopen to British ships. The action taken by tho Government in insuring against war risks had a great effect in encouraging the importation of foodstuffs without any great rise in price. Now it is announced that the Government has made an arrangement with tho Bank of England guaranteeing approved bills of exchange, which will have the effect of removing tho deadlock in the money market, especially with regard to foreign remittances, and so enablo oversea trade to bo resumed. The first few days of tho crisis were tho only dangerous period, and now that this has been safely surmounted, there is no doubt that thero will be-no more trouble, but commerce- will revive and run on its old linos. London has

magnificently justified its position as the great banking centre of the worjd, and it wi 11 stand on a higher, pedestal than ever after tho war. One thing, however, must never bo forgotten. Tho strength of tho Navy and tho. command of tho sea have alono made these things possible. Had wo been caught napping—had our enemy been allowed to confront'us with a superior fleet— then nothing could have saved the Mothor Country, rich as she is, from financial ruin as well as military dofeat. •