CHEAPER MONEY

Hokitika Guardian, 20 February 1932, Page 5

CHEAPER MONEY

LOWER BANK RATE

RISE IN VALUE OF STOCKS. i United press Association—By Electric Telegraph.—Copyright.)

LONDON, Feb. 18. The bank rate has been reduced t-o live per cent. The reduction is hailed with widespread satisfaction, and is considered in conjunction with the repayment of the -French a.nd\ American credits as an indication of a welcome improvement in the international financial position. The -reduction of the bank rate from six to five per cent has had a stimulating effect in the city, and on the 'Stock -Exchange. It is the first reduction .since England left the gold standard live .months ago.

The change came as a pleasant surprise, and business received an immediate stimulus, and stock prices generally were marked up. An outstanding feature at the close was -tha,t substantial gains were registered by all the. loading guilt- edged specialities. These included:— Wat loan, five per cent, a rise of three-quart-ers to ninety-nine and three-quarters; -Funding"' Loan, four per cent, a rise of one and five-eights to eighty-e’ght and five-eights; 'Consolidated, four her ceflt, •a rise of one and three-eights to -eightysix and three-eights.

The Rt. Hon, Runciman (President of the Board of Trade) speaking at; tbs; Chamber of Shipping dinner, said that he had heard of the reduction in the bank rate, which would afford relief far exceeding the one per -cent of the drop. It would especially help with regard to industry and it avould liejp those income tax payers who had borrowed to pay the tax.