Post-War Finance

Levin Daily Chronicle, 9 February 1918, Page 1

Post-War Finance

ENGLAND AND GERMANY. LONDON, Jan. 31. Sir Edward Holdon (chairman), at a meeting of the London City and Midland Bank, Ltd., strikingly discussed Germany's post-war financial stress, and said that Britain's immediate need was a more elastic and more powerful banking system, more closely identified with industry and commerce. He estimated Germany's floating debt, mostly bills, at 1150 millions sterling. Her total war borrowings were 5100 milieus, against Britain's total cash borrowings of 4900 millions. i The Germans after war, he stated, would bo compelled to flood the market with millions of war stock, in order to buy raw materials and erect and equip factries. The banks would hope to absorb' the stock with a view to estbalishing exchanges. He urged the appointment of six of the ablest bankers to consider the immediate repeal of the Bank Act of 1844, which was a notorious handicap, and declared that we must increase the banks' capital, improve the exchanges, reduce insurance and freight, and decrease the cost-of production and prices. [Peel's Bank Charter Act, of 1884, required, among other thing 3, that weekly returns' of the Bank of England be published, and limited the issue of notes to £14,000,000.]