The Alaska daily empire., 1914-08-27
AS LONDON WAS
 BEFORE TIE WAR

Editor-Accorcing to news recelVeu py the last mail from England, derange- ment of finances such as has not prev iously been known is being experience ed in London.
 The news to hand gives & few inter esting facts concerning this state of affairs, at time prior to the declara' ton of war between England and Ger many. August 4th.
 To avert crisis the British govern ment made diplomatic move in ex- tending the annual bank holiday, which falls on August 1st but which this year was celebrated on Monday, August Sd, over the three following days, thus giving the banks four clear days in which to prepare for the im- pending difficulty.
 Indications were then, that the Bank Act would be suspended, thus empow- ering the Bank of England to increase it's note circulation to its e1 notes (the lowest note hitherto being e5) and to retain all specie in the vaults,
 On the Stock Exchange securities were generally depressed.
 Germany and France, by selling out all holdings caused consols. the gilt edged securities of the British govern ment. to fall rapidly.
 At the last Stock Exchange settle ment, German banks withdrew all loans from ahe Exchange causing a still further depression and, in order to prevent a financial panic, the Lon don Stock Exchange. for the first time in the history, closed it's doors.
 The demand for gold by the German banks became so insistent that the Bank of England raised its rate of dis count from per cent to ten per cent At this ruinous rate the discount hous- es were compelled to discount their bills to meet the demand of the banks for the return of their loan. One bank alone in one day withdrew in this manner $10,000,000.
 Business with the continent was im- possible, and debts due from Germany, Austria and France remained unset tled-each country being determined to retain it's gold.
 At this stage the public was not greatly alarmed, any demands on the banks were promptly paid in notes, which up to the time of the suspen- sion of the Bank Act could be ex- changed for gold at the Bank of Eng land.
 The newspapers treated with levity the spectacle of small queue of agi- tated depositors waiting to relieve the Bank of England of the honors of managing their financial affairs.
 The general demand was for "cold cash" The large shops and business houses were unwilling to accept pay ment by the e5 note. smaller shops refusing absolutely
 The rate of stock, exchange between British and foreign currency was all upset. the sovereign, in France being valued at 20 francs instead or 70 Trancs as heretofore.
 American travellers in Europe and in England found their bills" of any denomination as we'll as their drafts and letters of credit worthless, as the paper upon which they are printed.
 All this goes to show that, even prior to the crisis and before war, be- tween England and Germany war de- clared. the effect of the general up set of world power was making itself felt in the high temple of the worlds finances. and that a fairly general sus- picion of graven things to come was in everyone's mind.
 In what a deplorable state affairs must be by now it is not difficult to imagine. R. F. s.