Yet the Dresdner Bank and other big German and Austrian banks have to date met fully one half their London obligations.
They were enabled to do this because their London branches were independent institutions whose independence was recognized by the British government.

The London branches were thus liquidated, collecting in and meeting their obligations at maturity, so far as possible.
Liquidation in acceptances is one of the keys to the success of the English loan.

While England had the ability before the war to discount $2,500,000,000 of acceptances, and with the present expanded base of the Bank would, without war, have the ability to discount $3,000,000,000, or three times our national debt, there is now no large business offering.

The discount credits can therefore be measurably turned to the war-loan account.

One of the biggest acceptance houses in London told me that the post-moratorium bills, or the new acceptances made after the moratorium, could not amount to more than 80,000,000 pounds, or $400,000,000.
With the liquidation on account of pre-moratorium bills and the absence of new business I should estimate that the London money market was able to take care of the 350,000,000 pounds loan put forth in November by the government without much regard to the investing community.
With expanding trade and confidence, English investment interests can absorb the major part of this huge loan before next summer, when another loan of about equal size must be put forth, according to present calculations.