AMERICAN FINANCE

Evening Star, Issue 19783, 6 February 1928, Page 5

AMERICAN FINANCE

ADVANCE IH DISCOUNT RATE Press Association —By Telegraph Copyright. LONDON, February 3. The advance in the New York rate of discount to 4 per cent, removes the last hope of an early reduction in the Bank of England rate. Financiers consider that any movement by the latter is unlikely before April* SAN FRANCISCO, February 4. The Federal Reserve Bank has raised the re-discount rate from per cent, to 4 per cent.—A. and N.Z. Cable. .NEW YORK STOCK MARKET. NEW YORK, February 3. The stock market gave an impressive demonstration of its inherent strength in recovering part of the heavy losses of opening dealings which were made as the result of a rise in the re-dis-count rate. Some pressure, which wns apparent towards the close, was due to nervousness over a report of excessive brokerace loans. Sterling dropped sharply on the theoiy that the higher bank rate would attract funds from London, but it recovered, closing at 4.86 5-8 cents— A. and N.Z. Cable. [A message from New York on the 2nd inst. stated: The New York Federal Reserve Bank has raised the rediscount rate to 4 per cent. The change is expected to have an instant effect upon the stock market, which lately has been unduly speculative. The Federal Reserve Board is regarded as definitely committed to a policy of tighter, money. The other ten Federal centres will probably follow the lead of New York, Chicago, and Richmond, all three of which are now charging 4 per cent.]