That New York will be greatly strengthened by the war, which has brought masses of American securities back to the country of origin and has put into the hands of American bankers and investors large blocks of European promises to pay, is as clear as noonday; but whether when the war is over New York will care to be bothered much with problems of international finance remains to be seen.  In the first place, the claims of her own country upon her financial resources will be insatiable and imperative, In the second place, the business of international finance is carried out on very finely cut terms; and the Americans being accustomed to the fat rates of profit which business at home has given them may not care to devote much attention to the international market, in which the risks are big, the turnover is enormous and the profits very finely cut.  It has been remarked by a shrewd observer that the Americans will never do business for a thirty-second.

In the third place, it must be remembered that the geographical position of London is more favourable than that of New York as a world centre, as the world is at present constituted.  England, anchored off the coast of Europe, is clearly marked as the depot for the entrepot trade of the Old and New Worlds.  New York is clearly marked as the centre for the trade of the Western hemisphere, and it is likely enough that New York and London, acting together as the financial chiefs of the two hemispheres, may be gradually united into what is practically one market by the growing ties of mutual interest.

With regard to the position of other possible rivals to London’s position, it need only be said that they have certainly been weakened much more rapidly than has London during the course of the war.  Paris, threatened by the near approach of an invading foe, has inevitably suffered much more severely than London, and is likely to take longer in recovering the great position as a provider of capital which was given to her by the thrift of the average French citizen.  Every one expects with confidence to see, when the war is over, a miraculous recovery in France produced by the same spirit which worked miracles after the war of 1871, aided and abetted by the subsequent improvement in man’s control over the forces of nature, and also by the deep and world-wide sympathy which all will feel for France as the champion of freedom who has suffered most severely in its cause during the war.  But it is impossible to expect, after what France has suffered, that she will be, for some time, in a position seriously to challenge London as a financial rival.  All Englishmen will hope that the day when she will be in a position to challenge us again will come quickly.