THE MONEY MARKET

King Country Chronicle, Volume VIII, Issue 694, 15 August 1914, Page 5

THE MONEY MARKET

DEADLOCK TO BE TERMINATED GOVERNMENT GUARANTEE London, Thursday Arrangements have been completed with the Bank of England by Mr Lloyd George Chancellor of the Exchequer, to terminate the present deadlock in the money market, and to enable trade and commerce ti» re sume The Government has agreed to guarantee the Bank of England against any loss incurred in discounting bills 'of exchange either on a Home or a foreign bank, or a3 the result of trade accepted prior to August 4t£, the day on which war broke out The Bank of of England announces that it is prepared upon applicaton uy the holder of any approved bill of exchange,accepted before August 4th, to discount the bill at the bank rate without recourse to such holder, and upon maturity the bank will give the acceptor opporUnity until further notice of postponing payment, interest being payable at the rate of 2 per cent, over the bank rate The Bank of England id prepared to approve such bills of exchange aa it customarily discounts, and also good trade bills and acceptances of such foreign and colonial firms and bank agencies a 8 are established in Great Britain The Australian Associated Banks are resuming, at discretion, the buying of bills on Australasia at the following rates: On sight, 2J per cent, discount; 30 days, 3 per cent.; 60 days 31 par cent , and 90 days, 4 per cent