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 on the nation's life blood. In fact the capitalists were quite good and tame, as was shown in the following January when Mr. Bonar Law renounced this expensive delusion in a speech at the Guildhall, calling for support for his great 5 per cent. loan offered at 95, and so yielding 5¼ per cent.; he said that "the terms offered were as good as the Government was justified in giving; that as long as there was money in the country the conduct of the war would not be hindered for lack of it; that if the loan failed, which it would not, the resources of civilization would not be exhausted; and that if other measures were taken, the rate would certainly not be 5¼ per cent. The enthusiasm with which this frank threat of financial compulsion was received by the Guildhall audience was remarkable evidence of the readiness of the City to suffer all things for victory." (Economist, January 13, 1917).

On this occasion the banks were not bullied into subscribing to the loan themselves but, as was done whenever a loan was offered, everybody was urged to borrow from his bank in order to apply. Clearly this had to be done in order to secure the great success of the loan, which brought in over £1,000,000,000 in cash. But unless the advances were repaid as fast