BANK DISCOUNT RATE.

Taranaki Daily News, Volume XLVII, Issue 81893, 23 November 1906, Page 4

BANK DISCOUNT RATE.

#. THE RECENT INCREASE. San Francisco, October 25. The following despatch from Lon--1 don, dated iQth October, caused 1 great excitement in financial circles in the United Spates:— The Bank of England rai-ed its discouqt rate to six per cent this ■ morning. Changes in the rate of . discount on any day except Thursday have been fe»' and far between. Not since 1890, just before the Bariag failure, has the rate been put up to six per cent. The relapse in Ameri- : can exchange, indicating a renewal of demand- for gold, and the probability of large withdrawals from Egypt seemed to have contributed o fhe action taken by the Bank nf England to-day. Financial circles expect Urge purchases on behalf of the United States. Reports are also current tha't the Imperial Bank ■ f Germany is conducting a large bullion movement for Russia's acount, while the Argentine is in the market as purchaser for gold. The Bauk's report yesterday showed the outflow had slightly abated. the reserve standing a little over ninety-four million dollar^—a gain of I nearly two and a half millions during the past week. However, this I was no{ deemed a safe margin, as . the reserve lost forty-five nJillions during the past six week', The Board of Trade returns show r the extent to which United States absorbed this gold, American shipments ' being nearly sixty million dollars for ' >hs fir«t nine months of this year, ?s ' agiinst less than five millions each 1 of the preceding yc.;rs.