(Siehe  S.  75).  The  latter  licence  was  issued  to
dehne  more  clearly  the  liabilities  of  the  banks  which
would  rank  for  payment  out  of  the  assets  in  London.
23.  Under  clause  3  of  the  licence,  the  Treasury
have  appointed  a  Controller  to  supervise  the  Operation»
of  the  banks,  and  he,  in  turn,  has  appointed  an
offlcial  Supervisor  to  act  on  his  behalf  at  each  of  the
banks.  The  supervision  is  intended  not  to  interfere
the  management  of  the  banks’  business,  which  has
remained  in  the  Lands  of  the  managers,  but  is  intended
to  ensure  that  the  terms  of  the  licence  shall  be
carried  out.  No  members  of  the  staffs  of  the  banks
have  been  dismissed.
24.  The  business  to  be  undertaken  by  the  banks
is  limited  to  the  completion  of  transactions  entered
into  before  the  outhreak  of  war  and  to  the  payment
(other  than  to  enemies)  of  liabilities  incurred  as  a
result  of  such  transactions,  which  would  ordinarily
be  discharged  by  the  London  establishments  of  the  banks.
25.  Both  the  Oesterreichische  Länderbank  and  the
Anglo-Austrian  Bank  suspended  payment  of  their
liabilities  during  the  currency  of  the  Moratorium,  and
the  latter  has,  with  the  assistance  of  the  Bank  of
England  (which  extend  ed  to  the  Austrian  banks  the
facilities  granted  to  accepting  houses  in  September
last  under  an  arrangement  made  between  the  Bank
of  England  and  the  Treasury),  been  enabled  to  resume
payment  of  its  liabilities  in  full.
26.  The  available  cash  resources  of  the  Oesterreichische ­
  Länderbank  have  not  permitted  of  a  similar
course  being  adopted,  but  it  is,  with  the  assistance
of  the  Bank  of  England  above  referred  to,  discharging
its  liabilities  upon  acceptances.
27.  Payments,  totalling  4,920.000  £.  have  been
made  by  these  banks  to  their  creditors,  and  at  present
sums  amounting  to  upwards  of  3,750.000  £  ave  due
to  the  Bank  of  England  in  respect  of  advances  made
under  the  Treasury  arrangement  referred  to.  These
advances  are  repayable  as  and  when  cover  is  received
from  Clients,  but  the  Bank  of  England  has  undertaken
not  to  Claim  repayment  from  the  Austrian  banks  of
any  amounts  not  so  recovered  until  the  expiration  of
one  year  al'ter  the  dose  of  the  war.  It  is  extremely
unlikely  that  there  will  be  any  surplus  to  pay  to  the
Bank  of  England  under  clause  4  of  the  licence.
28.  Particulars  of  securities  held  by  the  banks  for
account  of  enemies  have  been  furnished  to  the  custodian
appointed  under  „The  Trading  with  the  Enemy
Amendment  Act,  1914“,  but  the  securities  themselves
at  present  remain  in  the  possession  of  the  banks.
Foreign  Office,  April  19,  1915.
Annex  I.
Licence  to  German  Banks  of  August  10,  1914.
In  pursuance  of  the  powers  conferred  on  me  by
„The  Aliens  Bestriction  (No.  2)  Order  in  Council,  1914“,
made  this  day  under  „The  Aliens  BestrictionsAct,  1914“,
I  hereby  permit  —

The  Deutsche  Bank
The  Dresdner  Bank,
The  Disconto-Gesellschaft,
to  carry  on  banking  business  in  the  United  Kingdom
Subject  to  the  following  limitations,  conditions,  supervision,
  and  requirement  as  to  the  deposits  of  money
and  securities:
1.  That  the  permission  shall  extend  only  to  the
completion  of  the  transactions  of  a  banking  character
entered  into  before  the  5th  day  of  August,  1914,  and
that  no  new  transaction  of  any  kind  save  such  as  may
be  necessary  or  desirable  for  the  purpose  of  the
completion  of  the  flrst-mentioned  transactions  shall  be
entered  into  by  or  on  behalf  of  the  British  establishments ­
  of  the  banks.
2.  That  the  business  to  be  transacted  under  this
permission  shall  be  limited  to  such  Operation»  as  may
be  necessary  for  making  the  realisable  assets  of  the
banks  available  for  meeting  their  liabilities,  and  for
discharging  these  liabilities  as  far  as  may  he  practicable.
3.  That  all  transactions  carried  out  under  this
permission  shall  be  subject  to  the  supervision  and
control  of  a  person  to  be  appointed  for  the  purpose
by  the  Treasury,  who  shall  have  absolute  discretion:
a)  To  refuse  to  permit  any  payment  that  may
appear  to  him  to  be  contrary  to  the  Interest  of
the  nation.
b)  To  permit  any  such  new  transactions  as  are,  in
his  opinion,  necessary  or  desirable  for  the  purpose
of  the  completion  of  the  transactions  first  mentioned
  in  paragraph  I.
c)  To  permit,  or  refuse  to  permit,  the  completion  of
any  particular  transaction  whatsoever.
4.  That  any  assets  of  the  banks  which  may  remain ­
  undistributed  after  their  liabilities  have,  j  so  far
as  possible  in  the  circumstances,  been  discharged,
shall  be  deposited  with  the  Bank  of  England  to  the
Order  of  the  Treasury.
E.  McKENNA,
One  of  His  Majesty’s  Principal  Secretaries  of  State.
Home  Office,  Whitehall,  August  10,  1914.
Annex  II.
Amended  Licence  to  German  Banks  of  September  19,
1914.
In  pursuance  of  the  powers  conferred  on  me  by
„The  Aliens  Bestriction  (No.  2)  Order  in  Council
1914,“  made  on  the  10th  of  August,  under  „The
Aliens  Bestriction  Act,  1914,“  I  hereby  permit  —
The  Deutsche  Bank,
The  Dresdner  Bank,
The  Disconto  Gesellschaft,
to  carry  on  banking  business  in  the  United  Kingdom
subject  to  the  following  limitations,  conditions,  supervision, ­
  and  requirement  as  to  the  deposit  of  money
and  securities:  —
1.  The  permission  shall  extend  only  to  the  completion ­
  of  the  transactions  of  a  banking  character  entered
into  before  the  5th  day  of  August,  1914,  so  far  as