WAR AND TRADE

Dominion, Volume 8, Issue 2268, 30 September 1914, Page 6

WAR AND TRADE

BUSINESS PROSPECTS IN LONDON

RISING PRICES

Some extracts are given below from a letter received by a local firm from a business correspondent .in London. The letter, which is dated August 12, throws interesting light both upon public affairs connected with tho war'and upon tho disturbance of business which the war.has occasioned.

"'No authoritative information was forthcoming from the Government up to tho virtual declaration of wnr; it was known that there was a lack of unity in the Cabinet, and that John Morley, with his great influence, was against intervention in Europe. Sir Edward Grey, our' Foreign Minister, known for his strong humanitarian inclinations, might have been swayed by Morley, and oil some technical ground might.have evaded what seemed to men of ordinary judgment our clear treaty obligations. Had that policy obtained tho mastery, the honour of this country would have been soiled beyond recovery, and it would only have been a matter of time before we were brought to our,knees. The Cabinet was stiffened, no doubt, by the ; action of the Opposition and by tho attitude of the contending Irish partieS; ' Asquith at the last moment departed from the 'wait and see , attitude, and tho country is showing a grim determination to faco tho issues as a united and determined nation, and wo can only hope that we may, for generation's to . come, free Europe from the continued menace of war which has for so long weighed on. it.

"As you will have heard, August 3 was a bank holiday, and tho banks have ' since .been closed until to-day (August 12). Stock Exchanges and other exchanges are also closed. This, whilst needful to avert a drain of gold, has brought chaos to tho ordinary routine of life. During this breathing-space, tho Government, acting in concert with the banks, have decided to issue Bank of England notes of small denomination, and make them legal tender. Other measures are in contemplation, but it is too early to guess what tho effect will be. ...

"All sorts of points arc, as you understand, rising out of the situation created; foodstuffs aro steadily rising and if any indication points to a 'corner,' the Government will probably ■ bo forced to seize and sell foodstuffs and provisions- on a'settled scale. Petrol and , all lighting oils aro going up fast, and petrol will probably,, be commandeered by tho authorities. Motor-cars are being taken by the Government, and others aro laid up for lack of petrol. Many firms, of good repute cannot sell their drafts., and altogether there is much embarrassment throughout the country. "The United States are conMent'that German trade will be smashsd, and it is clear that tho United States, would in that case reap a rich harvest; they are entirely sympathetic with.us., '.We are probably on the eve of seeing- the crowned heads of Europe disappear altogether. 'Mailed Fists' and dynastic ambitions have probably bad their day. , - ...

" . . .1 would here say that prices are normal at the moment, but no prices would be quoted within twenty per cent, of what wo have been buying at. ... Iron and steel is up £1 per ton, and rising; galvanised iron will probably not be obtainable for a little ttine.

"I don't know for certain what boats have been taken on charter by tho Government ; it is pretty evident that there is a transport of troops and war material to Belgium, but what dimensions it has assumed the authorities have successfully screened from the public. From loading brokers it is most difficult to get any guidance as to sailings. .. .• ■''..■■',.' . ."I think every steamer should sail, and that, if Government; insured, a war risk of two per cent, would be ample, for the more sailing tho less the risk, but we have to grope in the dark . I think the war. risks.will tend to ease down, but it is at best only an opinion. ... I got a loan from a London joiiit stock bank at a fraction over bank rate without the least trouble."