The War and Our Financial Fabric

A historical and economic analysis written in the early 20th century. This book examines the impact of a major war—clearly referencing the First World War—on the financial systems and banking operations of Britain, focusing particularly on issues such as banking, credit, currency, and national financial confidence. It is aimed at readers interested in monetary theory and the mechanics of banking during times of national crisis, offering insights derived from recent and unprecedented financial challenges. The opening of the book, which includes the preface and first several chapters, sets out Wall's fundamental argument that the British financial system, often criticized for resting on a supposed fragile ''superstructure of credit,'' is in fact far more robust, being grounded in the nation's wealth and sound banking practices. Wall discusses the evolution of money from barter to legal tender, distinguishes between types of currency and deposits, and explores how banks really operate—not by creating credit out of nothing, but by transforming existing wealth into liquid capital. He challenges prevailing anxieties about gold reserves and bank runs, stressing that public confidence in sound management, rather than mathematical ratios of reserves, is key to stability. Throughout, Wall uses simple analogies and balance-sheet analysis to demystify the functions of banks, making the complex structures and controversies of wartime finance accessible to lay readers.