War-time financial problems

16 LONDON'S FINANCIAL POSITION

A little book published this year by Messrs.
Macmillan and Co., entitled " England's Financial
Supremacy/' contains a translation of a series of
articles from the Frankfurter Zeitung, and from this
witness we are able to get some information which
may be valuable, and is certainly interesting.

The basis of England's financial supremacy is
recapitulated as follows by this devil's advocate:—

" The influence of history, a mighty empire, a cosmo-
politan Stock Exchange, intimate business connections
throughout the whole world, cheap money, a free gold
market, steady exchanges, an almost unlimited market
for capital and an excellent credit system, an elastic
system of company legislation, a model Insurance organi-
sation and the help of Germans, these are the factors that
have created England's financial supremacy. Perhaps
we have omitted one other factor, the errors and omis-
sions of other nations."

Coming closer to detail, our critic says, with
regard to the international nature of the business
done on tlie London Stock Exchange :—

" In recent years London had almost lost its place as
the busiest stock market in the world. New York, as a
rule, Berlin on many occasions, could show more dealings
than London. But there was no denying the inter-
national character of its business. This was due to Eng-
land's position of company promoter and money lender
to the world ; to the way in which new capital was issued
there; to its Stock Exchange rules, so independent of
legislative and Treasury interference ; to the international
character of its Stock Exchange members, and to the
cosmopolitan character of its clients."

On the subject of our Insurance business and the
fair-mindedness and quickness of settlement with