8o 



EXTENSION OF TELEGRAPHIC COMMUNICATION 



to 3. 143. 6d. percent on the average for the year. In IQII there were no abnormal 

 demands for money; indeed, the uncertainties with regard to the Moroccan situation 

 caused investment money to accumulate in the banks, and the average Bank of Eng- 

 land rate for the year was no higher than 3. gs. 4d. In 1912 the average Bank of 

 England rate rose to 3. 153. 6d., inconsequence mainly of the disturbance to credit 

 arising from the wars between Italy and Turkey, and the Balkan States and Turkey. 

 These wars, with the anxiety they created as to a conflict between the Great Powers, 

 caused large withdrawals of cash from the State Banks of France, Germany and Austria. 

 The withdrawals of cash were increased by the mobilisation of troops in Austria and 

 the payment for supplies by loans obtained from bankers. The political situation 

 thus caused an expansion in the coin and note circulation of the three banks mentioned 

 of nearly 80,000,000 in a period of four months instead of a normal sum of about 

 30,000,000. The result of this great drain upon the resources of the State Banks 

 of France, Germany and Austria was an advance in the value of bankers' money through- 

 out the world. During the closing months of 1912 the Bank of England rate was 5 

 per cent, the Bank of France rate 4 per cent, an unusually high rate in France, 

 while the German and Austrian bank rates were 6 per cent. The conclusion of peace 

 between the Allies and Turkey was looked forward to with the expectation that it 

 would result in a great reflux of cash into the continental -banks and renewed ease 

 in the money markets. Whether or not an improvement in the general political 

 situation would induce French bankers to replace the money they had withdrawn 

 from Germany and from Austria had yet to be determined. If not, the value of 

 bankers' money in both of these countries would remain relatively high for some 

 time to come. Having regard, however, to the probable activity of the world's trade 

 and the great volume and value of the merchandise to be financed, it was evident 

 that banking money would remain in good demand at profitable rates of interest not- 

 withstanding a gold production at the rate of about 100,000,000 per annum. 



The average rates for banking money in England, France, Germany, Holland 

 and Belgium since 1902 are shown in Table XIII. 



Table XIII. Average Bank Rates in Europe, 1902-12. 



(GEORGE PAISH.) 



THE EXTENSION OF INTERNATIONAL TELEGRAPHY 



Submarine Cables. The approximate length of submarine cable in active work at 

 the end of 1912 was 277,000 miles, of which but a sixth was under any government 

 control, the remainder being administered by private enterprise, the capital invested 

 representing some 35 million pounds sterling. Whilst it has generally been recognised 

 that the cables afford a highly efficient method of telegraphy, and that the parties ad- 

 ministering them provide, as a whole, an eminently satisfactory service, it has for a 

 long time been felt by governments and by the public at large that the service is of a 

 very costly nature; and that having regard to the increasing demand for speedy com- 



