To my mind the economic developments of the last few years possess—in common with some political developments—all the outward signs of ultimate collapse. I cannot believe that the great nations will for many more years tolerate the restrictions and wasteful methods of carrying on international trade which have been imposed upon them in recent times.
A widening of the area of exchange stability and freeing of the channels of trade must be achieved unless the world is to be condemned to perpetual economic crises followed by disaster.
It is, therefore, imperative that our financial machinery, through which not only our international trade, but the trade of many other countries is facilitated, shall be maintained in the highest possible state of efficiency in preparation for that expansion of world commerce which must surely come.
In the meantime, we know that just as the authorities may rely on us as bankers to give them all possible support, so we, in the critical and dificult times which may lie ahead of us, can rely on them to do what is possible to enable us to preserve that liquidity which is the strength of the system, and to keep in good working order the Discount market and all other sections of what is still the greatest financial centre in the world.
In this connection, in accordance with what we believe to be the wishes of the Government, I think I can speak for all bankers in saying that we are endeavouring to do our utmost to discourage the transfer abroad of funds which might be detrimental to the present national financial position.
Lastly, I would like to take the opportunity of assuring the Chancellor of the Exchequer that we have not been unmindful of the wishes of H.M. Government that in the event of the awful catastrophe of war we should endeavour to carry on the banking facilities given to the public as far as possible. I hope that the arrangements the banks have made, together with the ce-operation among themselves which would be brought into operation, would result in a continuation of all essential banking facilities being afforded to the public."
Text read from the printed page and cleaned; old type leaves the occasional error.