Renewed Importance 0f The London Money Market.

The article emphasizes the importance of the money market of London, England. Nowhere in the world does there exist a short money market as sensitive and as closely integrated as in London. Closely controlled during the Second World War, it has since 1951 come back into its old importance for both domestic and international short funds. While the structure of the short money market has changed from generation to generation, its essential function of providing continuous employment for short marginal funds remains the same. In the performance of this function, four closely related institutions have emerged: the acceptance houses, the discount market, the joint stock banks and Bank of England. The stock-in-trade of the acceptance house is the bill of exchange. Originally a merchant due to his reputation for integrity and financial sagacity became so established that, for a fee, he could undertake to become the acceptor, thus guaranteeing the payment of a bill. Many early merchant bankers chose their customers so wisely that they were able to give up their original business in favor of doing nothing but accepting.