THE STATE OF CREDIT.

Stratford Evening Post, Volume XXXVIII, Issue 1, 31 December 1913, Page 4

THE STATE OF CREDIT.

An interesting pronouncement was delivered recently in London by Viscount Goschen with regard to the in-j fluenco of hankers on the state ol credit and the money market gener-j ally, in his inaugural address as pre-l siclont of the Institute of Hankers. | He pointed out that in the nineteenth} century the world was accustomed to; a financial crisis every ten years, al-j ways attended hy some iailnres ; hut, although times of trouble have since been gone through, when it appeared as if Europe was on the brink ol war. and stocks from abroad had been thrown on the London market to be sold at panic' prices, they, have not been attended by any serious failures. This lie attributed to the financial institutions, which have acquired such power that at the moment when credit appears to he iniiated and speculation unhealthy they are able to restrict credit fftr other than legitimate trade purposes, and so compel those disturbing forces to mark time, if not to halt, ‘until equilibrium is once more established. Some months ago the English hanks generally shut their eyes to any but the most pressing needs, and this attitude produced a most salutary efi'eci. on the overstrained market. It is thus, in Viscount Goschen’s opinion, a source of congratulation if the periods of crisis arc loss frequent, that the gap between each crisis grows wider ; and the excellence of presen 1 day banking institutions may take credit for much of the improvement.