British War Finance 1914 15

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000, and it was probable that the insurances had cost at least £11, 100, 000, so that the consumer had had to pay in advanced prices very much more than the cost of the actual losses incurred, and probably more than the total amount charged for insurance by the State and by the open market. The Association held it to be essential, in order to obtain the full advantages of the State scheme, that the premiums should be maintained at rates sufficient to cover, but no more than eover, the probable ...losses. " When Mr. Booth thus spoke, the Kaiser's infamous submarine outrages were not yet foreseen, otherwise the Governmenfs war risk rates might not have seemed ex- cessive. As the day approached for the threatened running amok of German mines and submarines among neutral ship- ping in the bogus war zone, the rush for insurances became exciting. Lloyd's had the busiest week in its history, and the risks underwritten were believed to exceed £15. 000, 000. In face of this commotion the Government rates remained unclianged.

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