The Washington times., 1924-01-28
LONDON DYING
AS MONEY
CENTER
Financial Prestige Of Britain
Hanging in Balance,
Titled Expert Says.
BY LORD SYDENHAM OF COMBE
(WPltten for international News
AnRwRMA

written for international News
SeRVice.)
Copyright. 1924. by International New'
Service.
LONDON, Jan. 28.-The story Of
the evolution which made Britain
the premier center of finance, and
London the great clearing house
of the. world, is complex and fas
cinatin9. Many causes have com
bined to confer this position upon
us. In the Middle Ages financial
control Of England fell into the
hands of the Germans, who by the
powerful agency of the HansiastiC
League manipulated our commerce
subsidized our kings. interfered in
our foreign policy and threatened
our existence as a maritime people
Entrenched in the city Of London
with amazing privileges, astutely
turned to full account, they brought
our few industries under tribute
and by the middle Of the fifteenth
century dominated our overseas
trade. The Treaty Of Utrecht in
1474. by which we surrendered al.
most all that the Germans demand.
ed. might well have seemed to rem
der our financial future hopeless.
Patriotism, the merchant adVen.
turers and protection at length
saved us and laid deep the founda.
tons Of our orld commerce.
Germans Thwarted.
The work begun by Henry VII
after the end Of the wars Of the
Roses was completed by the great
seamen Of Elizabeth, who wrecked
the invincible Armada financed
and supplied by Germans, who also
provided assistance for the expe.
dictionary force which, under the
Duke Of Parma, was to invade Eng.
land. The Thirty Years War
which began in 1913, finally shat.
tered the first German empire,
and France became the most dan
gerous rival to British expansion
The conclusion Of the long conflict
with France left us paramount al
sea, with commerce increased by
war and with security at home and
in the colonies, Ghich could grow
in peace to great dominions. The
immense Industrial DEVELOPMENTS
Of the nineteenth century created
the wealth by which the members
OF the empire and some. foreign
states could be financed. We be-
came the great creditor nation OF
the world.
With a long start in industrial
production and rapidly growing
overseas trade, supported by the
prestige OF a victorious navy and
built up on protection, we could
easily hold our own for many
years. The policy of free imports
was powerless to affect our prog.
resS, while no serious rivals had
entered the field.
Crushed By French.
The second German bid for
power was crushed by Napoleon
ana only after the establishment OF
the empire under Prussian au.
spices in 1871 could German am.
billions take the form which led
straight to the World War. If the
Allied powers had been defeated
the center Of world finance would
nave shifted to Berlin or Frank.
turt' and London would have been
supplanted by Antwerp or Ham
burg. In the eighties German in.
naturalization began to make rapid
progress and for several years be.
fore the war German penetration
aided by the methods resembling
those or the HanSiatic League and
by our policy Of free imports, had
gone Tar toward control Of some OF
our important industries, II
dreams Of military dominion had
not captured the German imagina.
ton our financial position would
h0on nfn
we should have Weakened to find
that the superior direction of most
OF our industries had passed into
the hands Of aliens.
Future Vague.
No wise man would attempt to
forecast our financial future: but
the omens are dark. The neces.
sary cost of the war and the reck.
less extravaganza which accom-.
panied and followed it have grave
ly shaken our whole economic
position. Our exports do not suf.
flee for the needs of our over.
grown population. Some Of our
industries are languishing. All
suffer from heavier burden OF
taxation than is borne by any
other people. The pound sterling
has given way to the dollar, which
w1ll remain the premier currency
unless America Is afflicted with
internal troubles. The confidence
which British finance won and
held in foreign countries rests
upon belief In our political sta.
biMty and in our banking system.
For many years nothing happened
to shake that necessary confidence
The soundness Of our banking sys
tenn was tested in the war and
not found wanting. 1t still com
mands general trust, never having
followed the Germans into political
paths and into espionage. But our
political stability is now directly
menaced by a socialistic party in
touch with foreign revolutionaries
A socialistic government may short
ly be in power, and If fraction OF
the economic program to which II
is committed is ever translated into
action the national credit will be
destroyed, and the position of trust
as the worlds financial center
which Britain has long held, will
be lost-never to be regained.