Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1914-10-26
England's Huge Resources
wall Street Journal


Revelations OF the war.
The gigantic reach of the financial arm OF the
British government put forth in the present war
Is little compromised this side, IT, indeed Il s as
vet fully appreciated IN Europe England itself
The Aoyd-Georgs found the commerce OF the
world suddenly parslyzed he summoned the best
financial talent that could he found and without re-
gard 10 politics party. lie took for his advisers
Austin Chamberlain opposition. conservative
party and formerly chancellor OF the exchequer Lora
81 Aldwyn another ex-ohanoellor Of the excheauer;
Lord Reading, the present lord chief Justice, and Sit
George Paish OF the London Statist
Then Ire said TO the city men. the bankers Of Lon
dom What is needed. that commercial soceptances
and discounts may proceed with regularity"
Tho bankers said: we are the endorsers ar
ceptors hundreds OF millions Of commercial bills
all Of which believed to be good when they were
accepted by US, but many of them are secured by
goods In Germany, based goods In GermOn
bottoms or TO German ports. How We afford
TO write new business for commerce? We must pro-
tect our names the outstanding paper, and have
now no CAPITAL for commitments"
Lloyd-Georse said: "If the Bank OF England.
backed by the British government, nsures you
against all losses acceptanees made prior to the
war declaration, would you go ahead and give full
credit TO commerce in the usual wayT
They responded that they certainly would.
IT was promptly arranged that notice of ell bills
desiring such insurance should be gwen to the bank
I've BiIlIon Aeceptaacea.
Press dispatches at that time noted the long line
OF bank clerks with their discount bills at the bank
anu tonS o1tef nCurB OF Work AT thht
but II was never told what the Bank O England and
the British government assumed at y time In ad-
dticn to promptly discountng more tnan 1000
bills offered the bank.
Commercial acceptanceB with London endorsements
outstanding ct that time are believed to have been
e40O,o00.o00 sterling $4,000, 600 sum twice
the national debt Of the United States.
OF this II estimated that 0.0oo.oO to 5e0o,OoO
pounds, a approaching one-quarter OF the
United States national debt aceeptonoes for Ger
many and Austria. But the bank and the government
insured endorsed commercial aeceptances rated good
OF August T. whether from South America, or the
United States. and whether for Austria or Germany
all alike The interest charge per cent over the
bank rate
OF course for large part OF these acceptances no
insurance financial assistance was necessary, but
it is believed that sSoOoo00 sfOoOco win be slow
Of collection and large part may be carried for some
time after the
The joint stock banks agreed to extend full credit
to post moratorium bills. acceptanees. and It
also agreed that post moratorium bills should
have prior claim over pre-moratorium bills.
Later It was announced that all endorsers ac-
cepiances except the original acceptor should be
leased on pre-moratorium bills the government TAX
ing their place endorser insurer. Only the drawer
and the first aeceptor such bills will be held
liable.
But bankers bills bills drawn against securities
do not stand in this category These regarded
bankers international balances, which must be met.
II is. however, proposed to extend the assist
10 the London Stock exchange loans been
extended TO commercial acceptances II is estimated
that there 30 600 oOao0 sterling oO1ooo
loaned by the London joint stock banks and others
on stock exchange securities.