Ka)N().MICS OF THE WAR. lOI 



public, and a panic was averted. At first, business was naturally 

 very restricted, but in so far as the financial centre, namely, 

 London, was concerned, the Government and the business 

 heads worked in ])erfect unity for the common good, and the 

 arran_^ements made to meet the great crisis seem to have been 

 almost beyond criticism. It was arranged by the Government 

 with the Bank of England to discount, or advance against, the 

 bills in the hands of the financial institutions, and the knowledge 

 that these bills could be renewed at maturity gave breathing 

 time to the commercial world. The result, so far. has been 

 that few failures have been recorded in England or her Colonies 

 conse(|uent upon the war. 



The London .'^tock Exchange was closed from the end of 

 July. 1914, until the commencement of January this year, and 

 when it was reopened nfinimum prices were arranged for cer- 

 tain stocks, so that dealings could not take place at below that 

 minimum, the idea being to avoid undue selling and the resul- 

 tant great losses. 



In the first instance America felt the war very keenly 

 because of the derangement of her imports and exports, and, to 

 begin with, their indirect losses were very great, but after the 

 first few months the orders from the belligerents for munitions, 

 foodstuft's, etc.. were so large that that country has, no doubt, 

 prospered rather than otherwise. The exchange position was 

 relieved by New York bankers depositing £20,000,000 at Ottawa, 

 to be held there on behalf of the Bank of England. Further, 

 an arrangement has been come to under which the movement 

 of large quantities of gold to settle exchanges will be obviated. 

 Not all countries, however, had these compensations. 



Brazil, for example, was very adversely affected, in the 

 first instance owing to the fact that it was just arranging a big 

 loan Avith the European countries in order to settle some out- 

 standing matters when the war broke out and stopped negotia- 

 tions. The chief products of Brazil are coffee and rubber, 

 and for the former article Germany and Austria are probably 

 its largest customers, but on account of the Avar these shipments 

 have been stopped, and the result has been great depression, the 

 country defaulting in payment of interest on public debt. 



The Argentine and other South American countries find 

 the greatest difficulty in obtaining freight for their surplus pro- 

 duce, which is the main source of their wealth, and it has 

 resulted in the Province of Buenos Aires defaulting in paying 

 the interest on their public loans, whilst some of the railways 

 have also failed to provide the interest on their debentures, etc. 



We, in South Africa, have much to be thankful for. 

 Immediately it was known that war had broken out in Europe, 

 the Government called a conference of bankers, mining houses, 

 and merchants, and the machinery to arrange many matters was 

 formed in case of necessity. The most vital matter, namely, 

 the financing of the gold industry and the shipment of that 



