BANK RATE DOWN AGAIN

Sun (Auckland), Volume III, Issue 845, 13 December 1929, Page 9

BANK RATE DOWN AGAIN

REDUCTION TO FIVE PER CENT. BUSINESS MEN SURPRISED United P.A.—By Telegraph—Copyright Reed 10.50 a.m. LONDON, Thurs. The Bank of England's discount rate has,ben reduced from per cent, to 5 per cent. The reduction of the bank rate completely surprised city businessmen. Financial circles express the opinion, that the reduction will sooth the market’s nerves, after the recent series of shocks, and give a much needed fillip to trade. The Wall Street slump, has eased the world money position and improved the bank’s chances of improving its gold holdings. Nothing but the shipwreck of a couple of steamers, with 100,000 cases of gold each aboard can prevent the market from further collapsing. GOLD FROM AMERICA SHIPMENT OF £2,200,000 ARRANGED Reed. 10.50 a.m. NEW YORK, Thurs. A shipment of 11,000,000 dollars in gold bars to London, lias been arranged by the Irving Trust Company, to the Midland Bank. BEARS GET BUSY SHARE MARKET HAMMERED Reed. 12.3 S p.m. NEW YORK, Thurs. News of large shipments of gold from the United States to England, following the reduction in the British bank rate, served the professional bears as an excuse to hit the stockmarket. Prices were hammered down one to ten dollars a share. The volume of business was not particularly heavy, though an outburst of selling shortly after noon affected the principal trading stocks. United States steel common stock was offered for sale in large blocks and struck a new low level.