The Effects of War and Depression, 1914–38

  • G. A. Fletcher


The four years of war from 1914 to 1918 provided a further important phase of development for the discount houses, because of the very marked and lasting effect that the circumstances of war had on their business and therefore on the functions they performed. International trade and finance, which had come to dominate the life of the market by 1913, were so disrupted and reduced in volume during the period of hostilities that they ceased to provide a sufficient livelihood for bill dealers and brokers. Through pure necessity the houses substituted on an increasing scale in their portfolios the public sector debt that was an indispensable product of war finance.


Bill Rate Treasury Bill Bank Rate Treasury Bill Rate Open Market Operation 
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  1. 1.
    The Economist 24 October 1914, quoted in W. M. Scammell, The London Discount Market (London, 1968) p. 195.Google Scholar
  2. 2.
    See E. V. Morgan, Studies in British Financial Policy, 1914–25 (London, 1952) pp. 99–105.Google Scholar
  3. 3.
    R. S. Sayers, Gilletts in the London Money Market 1867–1967 (Oxford, 1968) p. 69.Google Scholar
  4. 6.
    See D. E. Moggridge, The Return to Gold, 1925: The Formulation of Economic Policy and its Critics, University of Cambridge, Department of Applied Economics, Occasional Papers, 19 (Cambridge, 1969) pp. 12–17.Google Scholar
  5. 9.
    In D.E. Moggridge, British Monetary Policy 1924–1931: The Norman Conquest of $4.86 (Cambridge, 1972).Google Scholar
  6. 25.
    R. J. Truptil, British Banks and the London Money Market (London, 1936) p. 312.Google Scholar
  7. 26.
    B. Griffiths, ‘The Determination of the Treasury Bill Tender Rate’, Economica (1971) 181–4.Google Scholar
  8. 33.
    Sir Henry Clay, Lord Norman (London, 1957) pp. 465–6.Google Scholar

Copyright information

© G. A. Fletcher 1976

Authors and Affiliations

  • G. A. Fletcher
    • 1
  1. 1.University of LiverpoolUK

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