"Germany has confessed enough. Louvain has been blotted out. For the German planting of mines in the open sea alone it is our duty to declare war. The facts have changed the whole aspects of things, since President Wilson's plea for patience was made. We should ourselves guarantee the commerce of neutrals and of the allied nations, leaving the English Fleet free to do its separate work. We should, by this mere act of declaration, shut off food from Germany. We should take our part in the great struggle instead of smugly sitting by while the world's work is done by other nations. Even Germany would then know that her plot against humanity had been both judged and doomed. The insolent cry, 'Deutschland über Alles', provides no exception for the United States. At the moment of Germany's success we must transform ourselves into a nation whose first business is war. Through South America she would strike at us next.
"I have been all my life a fighter for peace, but I appeal to President Wilson, the Senate, and my private fellow-citizens, of whatever descent, to end the system of aggression and defence by arms, and to replace it with international law and international police."
The Economic Position—Moratorium Extension—Great Britain's Oversea Trade—Germany's Commerce—Question of Food Supplies—Importance of the Balkans—"Petrograd."
In the midst of military, diplomatic, and political turmoil, the responsible departments of the Government paid very necessary attention to finance. In the course of an interesting speech in the House of Commons on August 26th, Mr. Lloyd George showed that he was looking after the financial and commercial welfare of the country. His speech ranged over a variety of subjects, and he indicated that the new £1 and 10s. notes would in time be regarded as a recognised part of the regular currency, and that they would not be entirely supplanted by the coming issue of certificates. As to the latter, the Chancellor of the Exchequer stated that their object was really to create credit. This might be considered, if taken literally, a somewhat dangerous statement; but the hope was generally expressed that care would be taken in granting these certificates and preventing their over issue. As this speech was of considerable importance, a quotation from the official reports is given below:
The Chancellor of the Exchequer said he did not know why there should be any scarcity of silver. It was not due to any shortage of the issue from the mint, and it looked as if there had been some hoarding, a very stupid thing. When the public got more accustomed to the 10s. and £1 notes there would be less difficulty in getting silver. With regard to the design of the new notes they would be totally different from the designs of the Scottish notes, some of which were beautiful.
They had had to consider a good many things, such, for instance, whether the notes would be easily forgeable. Then they must have a watermark which could be easily seen. For these reasons they had had to disregard the very artistic designs of the Scottish notes. It was much more difficult to imitate simplicity. Therefore, they had decided in favour of the simple note because once they had started this currency it might very well become quite popular and part of the regular currency.
With regard to the certificates the object was really that they should rather create credit without issuing the actual notes. It was purely a certificate that the banks were entitled to so much currency. They need not draw upon it, although they could, and the knowledge that they had got so much credit at the Treasury enabled them to make their arrangements for financing the trade of the country.