We have so far dealt with only a few of the results of the war.
There were various others of great moment, to some of which a
passing allusion has been made.

On July 30th, for the first time in history, the stock markets of
the world were all closed at the same time. Heretofore when the
European markets have been closed those on this side of the ocean
remained open. The New York Exchange was the last big stock
market to announce temporary suspension of business. The New York
Cotton Exchange closed, following the announcement of the failure
of several brokerage firms. Stock Exchanges throughout the United
States followed the example set by New York. The Stock Exchanges
in London and the big provincial cities, as well as those on the
Continent, ceased business, owing to the breakdown of the credit
system, which was made complete by the postponement of the Paris
settlement.

Depositors stormed every bank in London for gold, and the runs
continued for a couple of days. In order to protect its dwindling
gold supply the Bank of England raised its discount rate to 8 per
cent. Leading bankers of London requested Premier Asquith to
suspend the bank act, and he promised to lay the matter before
the Chancellor of the Exchequer. In all the capitals of Europe
financial transactions virtually came to a standstill. The slump
in the market value of securities within the first week of the
war flurry was estimated at $2,000,000,000, and radical measures
were necessary to prevent hasty action while the condition of
panic prevailed.