September 11, 1914.

THE COLLIERY GUARDIAN.

579

the commercial balance in non-competitive markets, or
of subserving some higher financial or political interest.
Great efforts may, therefore, be made to retain or
recover this trade, out of all proportion to its intrinsic
value. We shall content ourselves with one hint. The
Kohlen depots will doubtless attempt to sustain their
activities by dealing in English and Welsh coal, as they
have to some extent in the past. If we suffer them to
do so, it must be borne in mind that the motive is
hostile. One of the great dangers that we have foreseen
during the last few years was the surrender of the
British export coal trade into the control of the Coal
Syndicate with its huge banking interests. This danger
may be less tangible to-day, but it would not be wise to
ignore it even now.

TRADE AND THE WAR.

Foreign Bills of Exchange—Some More Trade Bulletins—
Embargo on Coal Tar Products—War Risk Policies—
Germany Enlisting Neutral Shipping—Trading With
the Enemy : a New Proclamation.

Advices from Copenhagen state that German mine owners
have been complaining of the accumulation of coal. Export
is now being allowed, the German Foreign Office announcing
that all coals except bunker may now be exported from
Germany.

An important communication was issued from the
Treasury last week. It stated that the breakdown of the
foreign exchanges had caused very great inconvenience to
traders throughout the country, and strong representations
had been made to the Chancellor of the Exchequer upon
the subject. It had been pointed out to him that the
dislocation of exchange was exercising an extremely
prejudicial influence upon trade generally, and especially
upon the foreign trade of the country, and that, in the
absence of the usual exchange facilities, goods could neither
be imported nor exported in any appreciable quantity. To
ascertain the causes and to find a remedy for the difficulties
in obtaining international exchange, the Chancellor of the
Exchequer consulted a large number of leading traders,
members of accepting houses and bankers, and after a
series of conferences at the Treasury the Chancellor of the
Exchequer wished to announce that an arrangement had
been arrived at which is designed to remove the difficulties.
The main feature of the arrangement may be summarised
as follows :—

1.	The Bank of England will provide, where required,
acceptors with the funds necessary to pay all approved
pre-moratorium bills at maturity. This course will be to
release the drawers and endorsers of such bills from their
liabilities as parties to those bills, but their liability
under any agreement with the acceptors for payment or
over will be retained.

2.	The acceptors will be under obligation to collect
from their clients all the funds due to them as soon as
possible, and to apply those funds to the repayment of
the advances made by the Bank of England. Interest
will be charged upon these advances at 2 per cent, above
the ruling bank rate.

3.	The Bank of England undertakes not to claim
repayment of any amounts not received by the acceptors
from their clients for a period of one year after the close
of the war. Until the end of this period the Bank of
England claim will rank after claims in respect of post-
moratorium transactions.

4.	In order to facilitate fresh business and the move-
ment of produce and merchandise from and to all parts
of the world, the joint stock banks have arranged—with
the co-operation, if necessary, of the Bank of England
and the Government—to advance the amounts necessary
to pay their acceptances at maturity where the funds
have not been provided in due time by clients of
acceptors. The acceptor would have to satisfy the joint
stock banks or the Bank of England, both as to the
nature of the transaction and as to why money is not
forthcoming from the client. These advances would be
on the same terms as regards interest as the Pre-
moratorium Bill advances.

The Government is now negotiating with a view to
assisting the restoration of exchange between the United
States of America and this country.

In pursuance of the Board of Trade scheme for assisting
British manufacturers and traders to secure trade with
British possessions and foreign countries, formerly in the
hands of their German and Austrian or Hungarian
competitors, further bulletins have been issued on anchors,
grapnels and chains ; tubes, pipes and fittings ; road loco-
motives (and steam rollers); engine and boiler packing;
nails, screws and rivets ; and on iron, and steel plates and
sheets. Enquiries should be addressed to the Director of
Commercial Intelligence Branch, 73, Basinghall-street, E.C.

The Board of Trade states that in the trades compulsorily
insured against unemployment the percentage of unemploy-
ment at September 4 was 6*24. This is practically the same
as the percentage a week before (6*2u), and compares with
a percentage of 3'34 a year ago. In engineering, construc-
tion of vehicles, and saw milling there is an actual decline
of unemployment. The present unemployment percentage
of 6*24 is well below the estimated average unemployment
of the insured trades over a period of good and bad years.

The secretary of the Manufacturers* Agents’ Association
announces that the Treasury has agreed to receive a
deputation from the association to discuss the present
situation as affecting agents.

On Thursday the “Trading with the Enemy Bill ” was
ead a second time, and passed through committe with
amendments. The Attorney-General, replying to several
speakers, said there was a great advantage from some points
of view in treating enterprise in this country, even though
it had a considerable enemy element in its composition,
Referring to a question about business profits accruing
to enemy shareholders, he said he would be slow to say it
would be right to do anything in the nature of confiscation
of the private property of subjects of an enemy state. Such
a policy would be capable of provoking considerable
reprisals.

In connection with the Government war risk insurance,
it is a condition that all interests must first be insured for
ordinary marine risks, and the values for both insurances
must be the same, which prevents the scheme being laid

open to speculative transactions. It is provided by
clause 67 of the Government scheme that marine.insurance
policies will only be accepted as evidence of values if issued
by members of Lloyd’s, British insurance companies, and
other approved insurance companies and underwriters. In
order to furnish an answer to many enquiries made of them
in this connection, the advisory committee of the War Risks
Insurance Office have passed the following resolutions :—

“ (1) That all policies, whether enemy or other, issued
previous to the outbreak of war, that is, bearing date up to
and including August 4, be approved.

“ (2) That no enemy policies issued on or after the out-
break of the war—that is, dated on or after August 5—be
approved.

“ (3) That all policies of recognised alien companies or
underwriters—other than enemy policies—issued on or after
the outbreak of war be approved.

“ (4) That policies, whether British or alien—other than
enemy policies—issued by trading or other firms or societies
not coming within the general scope of established under-
writing associations, issued on or after the outbreak of war,
be not approved.

“ (5) That, notwithstanding these general provisions, the
Claims Committee be requested to submit, for the special
consideration of this committee, any cases in which the
suitability of a particular policy for approval may appear
open to question.

“ (6) That theseiprovisions be made public, and that a
warning be attached that persons holding policies of which
the approval may seem open to doubt should obtain the
approval of this committee, expressed-by endorsement on
the policy when submitting their insurance for acceptance
by this committee. As the committee understand that a
report is current that payment of claims on cargo by the
committee will be deferred, they think it well to call
attention to Clause 73 of the Government scheme, in which
it is provided that payments of claims, when admitted, will
be made at once in cash.”

Frustrated in their efforts to secure British ships to
carry on their business during the war, the German
shipping lines are falling back on Norwegian vessels. It is
announced from New York that German firms have
organised a new service to Brazil under the Norwegian flag
to take the place of the German line, which is unable to
continue its sailings. Nearer home, too, there are abundant
signs that German traders are making the fullest use of
Holland, Denmark, and Sweden to carry on trade, if not
also to obtain imports of foodstuffs. If Germany is
successful in thus utilising neutral shipping to carry on
her import and export trade, it becomes a fine point to what
extent such neutral shipping is infringing the neutrality of
its flag. The matter is engaging the attention of the
Board of Trade, and special enquiries are understood to
have been instituted, particularly in Rotterdam.

In the House of Commons on Wednesday the Attorney-
General introduced a Bill to make provision “ with respect
to penalties for trading with the enemy, and other purposes
connected therewith.” Trading with the enemy was, by the
common law of this realm, a crime, but it had been thought
convenient to issue a Proclamation stating more in detail
what were the transactions which were prohibited and what
transactions were permitted. The experience of the last
few weeks had shown that it was necessary to revise this
Proclamation and issue a new one. This would state more
clearly the rules which must be observed. It would prohibit
the making of any payment to an enemy, even though it
arose oat of a contract made before the war began. In this
connection, he pointed out, trading with the enemy meant
a person, firm, or company resident or carrying on business
in hostile territory, and the test in this connection was not
the nationality of the person with whom they were dealing.
It was proposed to make the offence a misdemeanour punish-
able either summarily or on indictment. For a summary
conviction the maximum punishment would be imprison-
ment for 12 months or a fine of <£500. For a conviction on
indictment the punishment would be penal servitude for
seven years as a maximum penalty. There were two other
things which were provided for in this Bill. It was proposed
to confer upon the Board of Trade, or a Secretary of State,
power to apply to a magistrate for what, in effect, was a
search warrant or leave to inspect the books and documents
of a firm which there was reasonable ground for suspecting
was committing the offence of trading with the enemy,
and in certain special cases—for example, where the
persons interested in a firm or company were substan-
tially subjects of a State now at war with this
country, and there was reasonable ground for suspecting
that an offence was being committed—this power of
inspection was conferred upon the public department
without the necessity of an application to a magistrate.
The remaining provision empowered the Board of Trade in
certain special cases—for example, where a business was
one which in the public interest should be continued, but
which was in danger of being discontinued owing to
difficulties of management connected with the war—to
apply to the Court for the appointment of a receiver of the
business, so as to enable it to be carried on.

In the course of replies to various questions, Sir John
Simon said they had reserved power to modify the Pro-
clamation from time to time. There was a committee
sitting—a Trading with the Enemy Committee—of which
he was chairman, and in the course of two or three hours
every day it passed in review hundreds of applications.
As regards the position of companies registered as English
companies but which were, in substance, enemy’s concerns,
of course it was to be observed that, even although the
shareholders of a company might be enemies, if they took
proper steps to prevent the profits of such a concern being
distributed to the enemy, it might be that such an
enterprise was a very useful way of employing labour in
this country. The Bill did not profess to deal with such
companies, except to confer on the proper department of
State power to investigate the books of any such country
in order to ascertain the facts, and, having ascertained
the facts, the Board of Trade, in a Bill which it was
proposed to introduce, would suggest a proper way of
dealing with such a company. He added that dividends
were not to be transmitted to the enemy’s country. They
should be duly secured and paid into a bank here, where
they could be safely earmarked for their true owners. As
regards payments which English merchants or others
wished to make in discharge of their just debts to agents
in this country of firms established in the enemy’s country,
he thought there was very grave doubt whether a man who

acted in this country as the agent of a German or Austrian
firm could really and truly be said to have any agency
once the war had broken out. He hoped, however, it
might be possible to make arrangements in these cases.
There, again, some plan by which they might be able
to collect such money and hold it on account of those to
whom it would belong if the war were not proceeding might
be found to be the best and most practicable method. Any
suggestion that proceeds on the proposition of trade
exchange would be heartily welcomed. But there was
this little inconvenience, that, if they began paying the
debts which Germans owed to Englishmen in this way,
it remained to be seen whether a sufficient number of
Englishmen would come forward to announce that they
owed money to Germans. Again, if they could devise a
satisfactory scheme for holding the interest of the alien
enemy until the war was over, they might thereby do some-
thing to assist their own trade while making certain there
was no improper help offered to those with whom we were
at war. In the new Proclamation they had provided that
there was no objection to entering into transactions with a
branch in neutral territory of a house established in
Germany, so long as the contract was made with, and
the goods were delivered to, the branch, and, secondly, that
there was no direct contract made with the head office in
Germany or Austria, but that would not be permitted if the
branch was in neutral territory on the Continent of Europe.

Replying to further questions, Sir John Simon said they
certainly could not allow any new sales or purchases of
shares as between an alien enemy, say a person in Germany
or Austria and themselves. As regards contracts already
made, where all that remained to be done was for the com-
panies to write a new name in a book, there would not be
any objection to that being done so long as it was quite
clear that it arose under a contract which was made before
the war began.

On Wednesday, also, Sir John Simon introduced a Bill“ to
make provision in connection with the present war with
respect to bills of exchange payable outside the British
Islands.” In explanation, he said in the ordinary way the
holder of a bill of exchange who wanted to have recourse
for payment to the drawer of it or the endorser of it—the
persons who were only sureties—had first of all to present
it for payment to the acceptor who is primarily liable. A
good deal of doubt existed as to whether the present law
would be sufficient to protect the holders of bills who were
anxious to present them to acceptors abroad who could not
as a matter of practice present them, either because the
acceptor is in an enemy country, or because of the diffi-
culties involved in transmitting them by post. They
proposed to introduce this Bill to make it clear that our
Courts would enforce the remedy against persons
secondarily liable provided that reasonable steps had been
taken to present a bill to the person who was primarily
liable.

A supplement to the ' ondon Gazette was published on
Wednesday night containing the Proclamation in relation
to trading with the enemy referred to by Sir John Simon.
The Proclamation of August 5, together with any official
announcement, is revoked, and from this date persons are
warned

1.	Not to pay any sum of money to or for the benefit of
an enemy.

2.	Not to compromise or give security for the payment
of any debt or other sum of money with or for the benefit
of an enemy.

3.	Not to act on behalf of an enemy in drawing,
accepting, paying, presenting for acceptance or payment,
negotiating or otherwise dealing with any negotiable
instrument.

4.	Not to accept, pay, or otherwise deal with any
negotiable instrument which is held by or on behalf of an
enemy, provided that this prohibition shall not be deemed
to be infringed by any person who has no reasonable
ground for believing that the instrument is held by or on
behalf of an enemy.

5.	Not to enter into any new transaction, or complete
any transaction already entered into with an enemy in
any stocks, shares, or other securities.

6.	Not to make or enter into any new marine, life, fire
or other policy or contract of insurance with or for the
benefit of an enemy ; nor to accept, or give effect to any
insurance of, any risk arising under policy or contract of
insurance (including re-insurance) made or entered into
with or for the benefit of an enemy before the outbreak
of war (11 p.m. August 4).

7.	Not directly or indirectly to supply to or for the
use or benefit of, or obtain from, an enemy country or an
enemy, any goods, wares or merchandise, nor directly or
indirectly to supply to or for the use or benefit of, or
obtain from any person any goods, wares or merchandise,
for or by way of transmission to or from an enemy
country or an enemy, nor directly or indirectly to trade
in or carry any goods, wares or merchandise destined for
or coming from an enemy country or an enemy.

8.	Not to permit any British ship to leave for, enter or
communicate with, any port or place in an enemy country.

9.	Not to enter into any commercial, financial or other
contract or obligation with or for the benefit of an enemy.

10.	Not to enter into any transactions with an enemy
if and when they are prohibited by an Order of Council
made and published on the recommendation of a Secre-
tary of State, even though they would otherwise be
permitted by law or by this or any other Proclamation.
Contravention of the law will render persons liable to
punishment and penalties.

It is provided that where an enemy has a branch locally
situated in British, allied or neutral territory, not being
neutral territory in Europe, transactions by or with such
branch shall not be treated as transactions by or with an
enemy.

Nothing in this Proclamation shall be deemed to prohibit
payments by or on account of enemies to persons resident,
carrying on business or being in Our Dominions, if such
payments arise out of transactions entered into before the
outbreak of war or otherwise permitted.

Nothing in this Proclamation shall be taken to prohibit
anything which shall be expressly permitted by the license
given by a Secretary of State, or the Board of Trade,
whether such licenses be especially granted to individuals
or be announced as applying to classes of persons.

In connection with the Board of Trade scheme for
assisting British traders further information has been
received by cable from H.M. Commercial Attache in Japan.
He says : “ Business is being very seriously hampered by