In summer 1914, the world went to war.

Now 110 years later, we go back to those figures, to those debates, to those questions,

in the greatest failure in the history of diplomacy.

I am Dr. Zach Twomley. You're listening to When Diplomacy Fails, and this is the July

Crisis. The German government is throwing dust into our eyes

for the purpose of delaying, if not hindering, those British preparations,

which alone would enable us to take apart in the struggle

should we eventually recognise the fact that we have no choice.

Air Crow fumes in the minutes of a telegram, 31st of July 1914.

Although the only war that had been declared was between Austria and Serbia, and although Russia

had gone to some lengths to keep its mobilisation secret, a sense of panic

was spreading across Europe. Nowhere was this more apparent than in the continental stock

markets. Were you to travel to London's financial district on the 31st of July, you could be

forgiven for thinking that war was as good as declared.

At 10.15 a.m., financiers were aghast to see a closure notice on the doors of the London Stock Exchange.

It was the first outright closure since 1773.

The run on the banks was equally dramatic.

A line had formed outside the Bank of England, since it was said this was the only institution willing to convert pound notes into gold coins. Such a panic was bad for business and it clearly threatened the vested financial interests of London's elite, which included many MPs. The Prime Minister noted that,

the general opinion at present is to keep out at almost all costs.

Thanks to Churchill's preemptive naval mobilisation, the fleet was ready, but that was about it.

The army had not been touched, no expeditionary force had been developed,

and the divided cabinet was unsure of what to do. All this cabinet did know was that, in the main,

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