ABSTRACT
Historically, the City has always sought to operate in the money, goods and capital markets with as little external regulation by the state as possible. Geoffrey Ingham points out that, in spite of the obvious changes brought about by the 1931 crisis, there was no fundamental restructuring of the banking and commercial system. Innovations were introduced cautiously, in order to avoid disturbing orthodox practices, and relations between the City, the Bank of England and the Treasury remained as close as ever. The evidence suggests that an embargo on new credit, official or unofficial, amounted to no more than a vague idea and that the policy of restraint was so insubstantial that it could easily be ignored. There was nothing to impede Hambros Bank and Schroders from becoming involved in other attempts to stimulate Anglo-German business. The American and the French creditors, on the other hand, continued along the road of liquidation.
