CREDIT FOR ENGLAND

Hokitika Guardian, 3 August 1931, Page 5

CREDIT FOR ENGLAND

FROM FRANCE TO U.S.A. (United Pre oo Association—By Electrn leiegrapn.—Copyright i LONDON, August 1. The Bank of France and the Federal Reserve Bank of New York are granting the Bank of England credits amounting to twenty-five million sterling apiece. GRATIFICATION AT GRANTS. PARIS, August 1. Sir Robert Inderslev. after the announcement of the bank eiedits, said: “This arrangement has given me great satisfaction, because it constitutes a guarantee that in a time of crisis, there will he solidarity and complete co-operation by the Central Banks of Paris and New York with the Bank of England. Sudden, unreasonable movements of gold tend to disturb confidence. They are also embarrassing to the loser and the recipient. These steps that have now been taken will obviate such movements, but the basic necessity for the establishment of confidence and prosperity is r. real, lasting Franco-German understanding, which it is everybody’s duty to assist.” BERLIN, August I. An emergency Decree has been issued, which restores full hanking facilities on August sth. GERMAN BANK RATE. BERLIN, July 31. The bank rate here lias been raised to fifteen per cent. The Lombard Street rate will be twenty nor cent, to-mor-row. CREDITS ARRANGED. LONDON. ■ August 2. The credits announcement ’ means that an agreement lias been reached for financial co-operation between France, Great Britain and United States, whereunder the dollar, franc, and pound are placed on a more cooperative basis than ever. London having granted large credits to Germany requires an assurance of freedom from the strain of the continual withdrawal of foreign credits. It may not he necessary for London to draw upon these credits. They ore arranged solely as a precaution. Moreover, as the credit arranged is triangular, ally one of the three banks can call for assistance on the others if necessary. PRESS COMMENT. ON CREDIT transaction. (Received this day at 9.25 n.m) LONDON, August 2. The “Observer” comments Unit the credit transaction is bigger than ft looks. Co-operation is assured between London, New York and Paris henceforward, till the crisis of international credit is overcome. Herr Bruening’s Government can now maintain itself against the suicidal parties, either Hitlerite or Bolshevik. America’s participation removes objection to the action with France alone. The British Treasury authorised an increase of fifteen millions of the fiduciary note issue for three weeks. The hanks application for such a course was made during the severe drain of heavy calls for the August holiday. Other journals stress that the arrangement enables France, - under the shelter of British security, to lend a hand indirectly to help Germany through the economic blizzard.