CHEERING NEWS.

Dominion, Volume 6, Issue 1728, 19 April 1913, Page 4

CHEERING NEWS.

. — o i The Bank of England rate of discount has been reduced from 5 to ii per cent-., and, although the reduced rate is 1 per cent, above that at the corresponding date of last year, the movement is one that will bo hailed with satisfaction by business men the world over and by.all classes of borrowers. The 5 per cent, rate was imposed on October 17 when the Balkan trouble, took an ugly turn, and it has been in force for just 182 days, or exactly 2G weeks. This is a very long period for so high a rate, and that trade has not suffered very much goes to prove that the prosperity of the world rests on a_ solid foundation. The reduction in the rate is very small, but it shows that the monetary posi- | tion is becoming easier, in any case it indicates that the political tension which was, in a large measure, responsible for the stringency, is at an end. Hoarding of gold has been resorted to in France, Germany, and other Continental countries, and now that the outlook has improved no doubt the hoarded gold will be brought out and put into circulaticra. If the outlook continues to improve a further reduction in the bank rate may be expected in the course of two or three weeks, but it is not likely that the rate will go below 4 per cent, for a little while.