2020-07-02 Thu

Twentieth-century London, one of the most important international financial capital of the world faced a critical financial crisis, shares crashed depositors were unable to access their funds for days and financial markets were froze and the stock exchange was closed for five-month, Every political, social, cultural and economic dimension of life was in crisis in summer 1914.

The financial crisis is unknown, there is no written record of the event that may be in the face of the great war its importance was not witnessed or maybe the struggle of life and death was greater than financial problems but in 1915 several journalistic accounts appear. It not only appeared in Great Britain but also amongst the fifty other countries around the world was affected due to crash in the stock market and it was the severe systemic financial crisis ever known.

Call of the war was at the foot and Market foresight of the risk of war were shown by the ‘Minsky moment’ of greed turning to fear and peace turn to ash when unintended damage from the diplomatic crisis in form of shot had been fired by Austria’s belligerent ultimatum to Serbia on the evening of Thursday 23 July.

The Chancellor of the day, Lloyd George, just a few hours after the midnight Declaration of War, touched on the need to preserve the countries gold. The issue of notes for one pound and for ten shillings was to circulate ‘As full as sovereigns and half-sovereigns are current and shall be legal tender in the United Kingdom for the payment of any amount” was said by the Royal mint.