World War I (1914-1918) to the Great Depression (1929-1941)

The fall of the Asquith coalition and the advent of Lloyd George as Prime Minister in December ended the debate but did not alter external financial policy. Moulton, Harold G. Thematic Section s. The crisis of Liberal Italy. Trading with the Bolsheviks.

Britain retained the largest overall foreign capital stock of any country. Faced with no alternative, the brokers and discount houses rushed to the Bank of England to discount bills. The Politics of Taxation in Britain, , Cambridge , p. Three expedients were employed: Britain had traditionally funded its wars one third by tax increases and two thirds by borrowing.

La Gorce, Paul Marie de ed. By extending the holiday until Friday 7 August, the government bought time. Two linked phenomena developed: Soutou, Georges-Henri: All Partners. To what extent he is prepared to insist upon the various claims for reductions in France's debt put forward by his predecessors probably will not be made known until the actual negotiations are opened at Washington.

The London stock exchange closed on 31 July. The reluctance of the joint-stock banks to comply owed something to their pre-war fears about the adequacy of the gold reserve.

The French Debt to the United States: CQR

American entry into the war transformed the inter-Allied credits from a hybrid public-private network into a set of intra-governmental relations of indebtedness with the United States at its core as the ultimate global creditor. Several governments capitalized on these sentiments by introducing a tax on excess profits. Within national war efforts, one can distinguish between the fiscal, debt-related, and monetary aspects of war finance.

Because colonial subjects lacked rights and democratic institutions, this inflation fueled social unrest and anti-colonial uprisings. It was a prescription resisted strongly by Walter Cunliffe , the Governor of the Bank of England, supported by the Treasury.

Cassis, Capitals of Capital , pp. The influence enjoyed by the presidents of large financial institutions, holding companies, and industrial conglomerates was certainly enormous. A series of scholarly works have illuminated the approach of British governments while at the same time drawing attention to the tensions generated by external finance.

More important, however, were the enormous costs imposed on populations at large by the imbalances and exigencies of war finance. La position internationale de la France. The importance of the United States to the war effort rose steadily: