THIS VOLUME

IS DEDICATED TO THE MEMORY OF

THE OBSCURE BANK CLERK

TO WHOSE CONVIVIAL HABITS

THE NATION OWES THE

INCEPTION OF ITS GREATEST FINANCIAL REFORM,

THE BANKERS' CLEARING HOUSE,

WHICH GAVE BIRTH TO THE CONCEPTION

OF

THE GOODS CLEARING HOUSE

360676

INTRODUCTION

It is hardly possible to overestimate the importance of the subject which is so carefully and clearly dealt with in the following pages. Having been asked to write a few lines by way of introduction I will preface my remarks by expressing the firm belief that now is the time to start putting our house in order, and to lay plans for the carrying out of every conceivable economic improvement to take effect at the conclusion of the war. The more dreadful the upheaval, the more necessary to look well ahead; the greater the losses the more urgent the necessity for preparations to replace those losses. So it comes about that we see schemes of varying magnitude already on foot, such as the new Falmouth Harbour, the Channel Tunnel, and the Goods Clearing House system-the last-named being by far the most important, as being a universal remedy for the existing evils which afflict distribution.

It is very well known that the inland transport rates in Great Britain are much higher than those in any other country in the world. This is a condition of affairs which should not be allowed to continue, and most business men will recognise that, as we are now enduring a gigantic financial drain, we should welcome most cordially and examine most carefully any scheme by means of which savings on a similar vast scale may be effected. I have been very much impressed, not only by the marvellous mechanical and electrical machinery, but by the great ingenuity which has been shown in adapting that machinery to the requirements of the case; and engineers far better qualified than I

am myself have spoken with enthusiasm of the enormous advantages which would accrue to the nation if the system were adopted. Its establishment would add to the prosperity of the country, enable us to send our merchandise around with greater freedom, and add very largely to the amount of land under cultivation. I am told that only about 25 per cent. of the available land in this country is actually under cultivation, and if by the system proposed for the cheapening of railway rates anything can be done to bring in a large proportion of the remaining 75 per cent. the scheme should be looked into with the greatest care. It is estimated that this Railway Clearing House system would, if established, save the country considerably more than £1,000,000 a day. The whole matter has been brought before the Chancellor of the Exchequer and the Board of Trade, but without any very satisfactory results. The last letter I received from Mr. McKenna referred me to Mr. Runciman's reply, on October 14, 1915, to Mr. Chancellor. This reply was as follows:

"Before effect could be given to the scheme for a Central Goods Clearing House in London, extensive statutory powers would have to be obtained by the promoters; and until the scheme has taken the form of a Bill seeking such powers, I think that no useful purpose would be served in reporting on it to Parlia

ment."

It is quite easy to understand that the railway companies do not like criticism, and it is also clear that the Board of Trade does not like it either: but public servants must not mind listening to those who pay them. The Board of Trade is in the position of our trusted agent, and it is the duty of an agent to look after the interests of the client; and I cannot yet make out why this important Government office does not make a point of closely investigating the remarkably cleverly-worked-out scheme, which has been brought to