**TSE IN THE BANK OF ENGLAND RATE

Dominion, Volume 9, Issue 2824, 15 July 1916, Page 9

RISE IN THE BANK OF ENGLAND RATE

CONSOLS ERRATIC CAUSES EXPLAINED By Telegraph-Press Assooiation-Oapyrislit (Rec. July 11/ 8.25 p.m.) ; London, July 18. .The . Bank of- England latßi has been advanced from 5 to "U per cent. . . •Consols' opened'at <£6U" 15s. (a. drop of 6s. ■ from last week), touched X6O after the announcement, and closed at .£6o.' 2s. 6d., the mean. price being £60 10s. :. Tho-rise iu the Bank rato is due entirely to a sharp rise in money value in New.xork since the ond-of last week, probably the outcome of America's loan operations, including loans to the. Allies, and also the expansion of trade activity. - ■ .■ • • The rise in New .York came as a surprise- in London, as-itwas believed that thero was considerable loanable capital still available- in America. The possibility of a rise in the London Bank rate was only tieriously. envisaged last evening. ' Financial circles generally approve tho step as a precautionary ' 'measure, designed to promptly allay any feeling of .unrest. The future' will depend chiefly on American developments. It is,hoped, that the' increased-rato : will only be temporary, but it is regrettod, as ic may indefinitely, postpone, - the - .big . long-dated war loan which is anticipated in many .quarters. - ! ' : ' BIG LOAN OPERATIONS IN WALL ' STREET. . (Bee. July 11, 8.25 p.m.)New York, July 14.. Official.—A 'ono hundred million dollar, loan has beon successfully negotiated bere. . ■