SHORTAGE OF GOLD.

Taranaki Daily News, Volume XLVII, Issue 81871, 22 October 1906, Page 3

SHORTAGE OF GOLD.

LATESi" CABLE NEWS.

CJTITID MKSS ASSOC lATIOS —Br KLKCTBIC TELBGIi vi: -. 'GFYBIGHT.

CHECKING WITHDRAWALS FROM LONDON. PROTECTING BRITAIN'S GOLD RESERVES. BANK INTEREST RAISED TO 6 PER CENT. DIRECTORS ACTION APPLAUDED. SLUMP IN SPECULATIVE STOCKS. COLONIAL STOCK NOT AFFECTED. PANIC ON FOREIGN EXCHANGES.

Received 21st, 4.;; p.m. London, October 20. The bank rate of interest is 6 per eent.

The rise in the bank rate is entirely due to the demand for gold.

It is understood the directors were aware that nine hundred thousand would probably be required to-dpy for Egypt and elsewhere, but it wa s learnt yesterdafy that further larg? lums were likely to be required for Egypt, America, and Canada next week. While the American Exchange is moving adversely, it is hoped six per cent will not only check withdrawals, but attract gold. The newspapers applaud the directors for protecting our small reserves.

The announcement quite demoralised the Stock Exchange, and a general slump set in on all speculative Stocks. Consols fell to 853. but afterwards recovered and at Friday's close stood at 85 5-i6ths. Colonials are practically unaffected. A semi-panic occurred on Wall Street (New York). All Stocks dropped two to eight points. Foreign Bourses are also depressed.