From the observer's point of view the second half of 1914 was the most interesting period through which the City has passed. Other times had seemed difficult when the country was in the midst of labour crises, when foreign politics threatened, and when the prices of securities drifted steadily downwards; but the City has never before had to cope with so vast an upheaval as has been caused by the present conflagration in Europe. The City, at any rate, had not been organised to meet the consequences of the clash of arms, and when the blow fell not a market was unmoved. The machinery and functions of the money market and the banks, the Stock Exchange, Lloyd's and the insurance companies, the Baltic and the shipping lines, the Corn Exchange and the Commercial Sales Rooms had all to be adjusted to meet the unprecedented conditions. Just as the fighting forces had to be mobilised, so had the industrial organisations to be cleared for action, for finance and commerce have been and are destined to play a great part in the mighty struggle. All the British leaders of industry were animated by two objects only: how best to assist the nation to withstand the shock of war, and how to emerge victorious. It will be interesting to consider briefly how the different sections rose to the occasion. The eventful year opened with money becoming easy and before the end of January the Bank of England minimum rate was 3 per cent. The decline in Bank rate was accompanied by a fall in the open discount market and early in February rates dropped to 1-11/16. Then began a renewal of a demand for gold from the Continent, and the discount rate rose to 2-15/16. In March the position was again easier and with the payments of the dividends in April the rate was as low as 1-3/4. In May the absorptions by Continental countries were on an abnormally large scale (though their significance was not fully appreciated) and the discount rate rose to 2-15/16 per cent. After the end of the half-year the rate was easier again, but it soon advanced steadily on the reports of strained relations between Austria and Serbia. On July 28 the fear of war involving this country became definite, and on July 30 the Bank rate was raised from 3 to 4 per cent.; on July 31 it was advanced further to 8 per cent., and on the following day again to 10 per cent. The market discount rates were nominal at from 5-1/4 to 5-1/2 per cent.