When the war broke out, $600,000,000 of these gold promises to pay were of German and Austrian origin.

The big London bankers who had their names on the back of such acceptances could not in honor underwrite any more commercial bills.

They knew their capital was involved in collection of those already out.
But Britain said the commerce of England must go on as well as the war.
The people who held these acceptances were promptly invited to turn them into the Bank of England, which held the guaranty of Great Britain behind it, and receive the money therefor; the discount rate after maturity to have 2 per cent added thereto, 1 per cent to go to the Bank for expenses and 1 per cent to the government for reserve fund to cover any losses.

Of such bills $600,000,000 were promptly discounted.
I hear that two banks, the London City & Midland with its $525,000,000 of deposits, and Lloyds' Bank, both refused to rediscount.

They believed the investments in commercial paper they had made were perfectly good, and that they were as well able as the Bank to wait for payment until one year after the war if necessary.
But to date more than half of these rediscounted bills have been paid.
It may be of financial interest to narrate how payments could be accomplished when by the King's orders there could not be any "dealings with the enemy" and payment to either side was forbidden by both.