WHAT A GREAT WAR WOULD MEAN

New Zealand Times, Volume XXX, Issue 6623, 12 September 1908, Page 5

WHAT A GREAT WAR WOULD MEAN

lias it ever occurred to anyone to think of what would happen to Britain’s banks in the event of r. workl-wicle war? Sir B. Gillen has been giving in? views on this pregnant subject, anc. among other things no says; A startling dilllculty may and muss arise among the loading nations should they become engaged in war with cadi other in a measure that jeopardises the mechanism of credit in the States affected, and throughout the commercial world generally, it appears to me that this is a formidable possibility of the international credit system that lias never been adequately considered. And it has not been considered for tho simple reason that, os a matter of fact, since this system became developed in its modern proportion*? there has been no war in which the leading nations most important to the system hare been mutually involved. Such a war would bring upon us, as well as upon the whole community of civilised States to which the system of international credit extends, quite unprecedented calamities and dangers. This would result from tho breakdown of tho credit system itself and the interruption of international commerce. To make th© Impressions more definite wo classify the mischiefs to b? anticipated. I would mention first ol all 'Uio stoppage or great contraction of tho, volume of imports and exports between enemy States and tho .States dependent on them. But the stoppage mid contraction would extend yet further, the customers of all tho countries primarily affected being unable to escape the eifcct oi the losses of tnoso countries. Next, there would bo a run for cash and withdrawal of deposits from banks which would also tend to bring about general failure and bankruptcy. The conclusion is. that the hanking position in Britain is one of real danger m the event of a great war—a war wm unlimited liability.