THE BANK RATE

Hokitika Guardian, 1 August 1931, Page 5

THE BANK RATE

Dinted Press Association. —Vj Klectru leiegiapn.—copyrigni.j LONDON, July 31. Though the increase in the Bank rate was expected, its aaucuuci. ineiit caused a drop in British funds c*t one to two pointsi This drop will necessarily postpone for a long time Mr Snowden’s conversion plans, Indian stocks, and Australian stink practically are not affected. Thu “Evening Standard is” City Editor says: “Though the increase in the Bank rate was necessary to, prevent funds from goiiig abroad, the new rate will inure industry and commerce, which will have to pay at least o.) per cent, for Bank loans' as the Bank, will not give industry the full benefit of cheap money. They should not pass on the increased rates immediately. MORE GOLD FOR FRANCE. PARIS. July 31. Simultaneously with the increase iv the Bank rate in England, the Bank of France has announced that its gold holdings have increased by ten millions sterling to £463,250,000, thus representing 56£ of the Bank’s note issue. HELP FROM FRANCE. TO SUSTAIN THE £l. LONDON, July 30. It is understood that France has not granted an actual £20,000,000 loan, or credits to Britain, but agreed to a private arrangement whereby a consortium of leading French banks agreed to provide £-20.000 for purchasing sterling bil’s re-discountable at the Bank of France. Thus France has agreed to make no further inroads on sterling, which has already strained its resources to the utmost. LONDON, July 30. The Foreign Exchange rate on Montreal is 4 dollars 87 5-8 cents per £l.