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Because of England’s loss of her colonial empire after the Second 

World War, it seemed that her influence as a world political power was 

waning. Essentially, this was true. The England of 1980 is not the 

England of 1880. She no longer rules the waves; she is a second rate, 

perhaps third rate, military power, but paradoxically, as her political 

and military power waned, her financial power grew. In Capital City 

we find, "On almost any measure you care to take, London is the 

world’s leading financial centre . . . In the 1960s London dominance 

increased . . ."56

A partial explanation of this fact is given:

"Daniel Davison, head of London’s Morgan Grenfell, said, ‘The 

American banks have brought the necessary money, customers, 

capital

__________________________

55 Coningsby, by Disraeli, Longmans Co., London, 1881, p. 252

56 McRae and Cairncross, Capital City, Eyre Methuen, London, 1963, 

p. 1

63

and skills which have established London in its present preeminence . . 

. . only the American 

 

banks have a lender of last resort. The Federal 

Reserve Board of the United States can, and does, create dollars when 

necessary. Without the Americans, the big dollar deals cannot be put 

together.

Without them, London would not be credible as an international 

financial centre.’"57