BANK OF ENGLAND AND THE GOVERNMENT

Dominion, Volume 9, Issue 2608, 2 November 1915, Page 5

BANK OF ENGLAND AND THE GOVERNMENT

HOW A GREAT CRISIS WAS j FACED. By Telegraph—Fr<ss Association—CopyrieM London, October 30. A White Paper has been published snowing the correspondence which passed between tho Bank of England and the Treasury on August 1, 1914. The Bank announced that during the previous five days it- had advanced twenty-seven millions to bankers, billbrokers, and merchants upon Government stocks, bills of exchange, etc. It had commenced business that morning with a reserve of £17,420,000, which was so largely drawn upon that it could not calculate to have £11,000,000 in the evening, so that unless tho Bank was permitted to issue notes against securities in excess of the amount permitted by law, it would ba necessary to curtail the facilities essential to trade and commerce. Messrs. Asquith and Lloyd _ George replied that if the Bank found it necessary to extend discounts and advances so as to require tho issuo of notes, they would obtain Parliamentary sanction for ths step. RUSSIAN WAR LOAN SIXTY MILLIONS ' SUBSCRIBED BY THE BANKS. Petrograd, October 31. The banks of Petrograd and Moscow are taking up sixty millions sterling of the forthcoming war loan. OUR FINANCIAL DEAL WITH AMERICA K REPRESENTATIVE APPOINTED. London, October 31. Sir Henry Harvey, K.C.M.G. (chief auditor of the National Health Insurance), has been appointed to represent the Treasury in the United States.