The question of maintaining oversea commerce received the prompt attention of the Government. Many people connected with the shipping industry had fully expected that the outbreak of war would find a large number of fast German cruisers at large and ready to prey upon British commerce. Shipowners had themselves made certain provisions, but only of very limited scope. They had formed certain mutual clubs in which ships were to be insured against war risks only until their arrival in safety in British or neutral ports. This arrangement would obviously not have had the effect of keeping ships at sea and maintaining oversea commerce as in peace times, which, in the Chancellor's opinion, was a vital necessity. The recommendations of the sub-Committee of the Committee of Imperial Defence were therefore put into operation at once. The proposals dealt separately with hulls and with cargoes. The State undertook to accept re-insurances from the clubs on ships up to 80 per cent. of the values, receiving in exchange 80 per cent. of the premiums. At first rates of 1-1/4 and 2-1/2 per cent. were quoted for the single and double voyages respectively, but these after a few weeks were reduced to 1 and 2 per cent. Similarly a premium for a three months' time policy was reduced from 40_s._ to 30_s._ per cent. The recommendation of the sub-committee respecting cargoes was, briefly, that the State should undertake to insure merchandise in British vessels at premiums which should not be below 1 guinea per cent. and should not rise above 5 guineas per cent. A special office was established at the Cannon Street Hotel and began to transact business on the afternoon of Wednesday, August 5. At first the maximum rate of 5 guineas per cent. was quoted; three days later the rate was reduced to 4 guineas per cent., and it was again reduced within short periods, until on September 1 it stood at 2 guineas per cent. At that level the rate remained until the last day of the year, when it was reduced to 1 guinea per cent.