THE EMPIRE'S COMMERCE.

New Zealand Herald, Volume LI, Issue 15687, 14 August 1914, Page 4

THE EMPIRE'S COMMERCE.

The Empire's commerce has recovered from the first shock of the war. A position unparalleled in the experience of living captains of British industry was created last week by tho announcement that the Enfpiro was at war with Germany. For the time commercial intercourse between the United Kingdom and the Overseas Dominions became impossible. The Government promptly guaranteed 80 per cent, of the risks on steamers and arranged to carry the risks on cargoes. Insurance rates fell rapidly; the London bank rate dropped from 10 per cent, to 5 per cent.; the Associated Chambers of Commerce of Great Britain appealed to overseas importers to renew their orders. But the war, which had sent the bank rate soaring and increased the cost of shipping .insurance, had made the transference of money impossible. Since the outbreak of war the Australian and New Zealand banks have been unable, to effect exchanges on London at any price. The announcement now made that the banks are to resume J the purchase of bills completes the readjustment necessary to reopen the commercial relations between Great Britain and her Dominions. The rates of exchange now announced are high, but this has to be expected in the early and uncertain stages of the war. Every day brings news from. England .of improved trade conditions. To-day it is announced that the Chancellor of the Exchequer has completed arrangements with the Bank of England which will ease the money market and enable commercial men to face the task of bringing British industry back to normal. In ten days the shattered network of longestablished commercial relations has be,en rewoven; ten days hence New Zealand and Australian traders will have settled down to the business of exporting and importing under new conditions, but strengthened in facing difficulties by the conviction that though war may interrupt it cannot destroy the industries of the Empire.