THE STERLING EXCHANGE.
Moreover, these developments coincided with the revelation of a great strain upon the London Money Market and upon the Sterling Exchange as a consequence of the financial crisis in Germany, which in its turn was accompanied by huge gold withdrawals from the Bank of England for France. The announcement that large franc • and dollar credits had been obtained in France and America was rightly regarded as a satisfactory indication of co-operation between the Central Banks in France, the United States and this country, but those who realized the inwardness of the situation also saw in the incident a warning as to the position of the Sterling Exchange resulting from the unfavourable economic conditions in the country.
I have hurriedly epitomized these developments immediately preceding the recent sudden activity of the Cabinet in looking into the question of the National finances, because the events go far to explain why, because of previous procrastination, conditions have arisen which have made it necessary for the Government to be both prompt and drastic in its plans for meeting the requirements of the situation. This aspect of the crisis is appreciated more keenly in' the City than any- where else, and it accounts in some measure for the extent of present anxiety.
Previous page