RISE IN THE VALUE OF MONEY.

Auckland Star, Volume XXX, Issue 293, 11 December 1899, Page 4

RISE IN THE VALUE OF MONEY.

The recent announcement that the Bank of England has advanced its discount: rate to six per cent, marks an important upward movement inr the value of money. The immediate, cause of this rise, is the closing- of! the Transvaal mines and the simultaneous demand fur mouey made by the British Government. But a hardening tendency has been noticeable for some time past, owing1 to the activity of trade in' Europe and America, affording" more profitable forms of investment. It is also pointed out that the adoption of a gold standard by Russia, Japan, ami Austria, and a similar movement in India, hove placed au additional strain upon the supplies of the yellow metal. But for the Trans* vaul- war this strain would not have ■been felt, .tveause thr world's output of gold is 'now double what it was ten years ng'O, without taking the Transvaal into account, and when the Boor war is over, and. the extraordinary resources of the Transvaal are once more placed, iinder contribution, we may expect a return to the former level. In the -meanwhile, however, it is a very bad time for carrying on any colonial loan operation. This rise in gold shows how closely allied the world's interests are, the disturbances in this little Boer KepubKc being- sufficient to disarrange the money markets of the great European States, and to affect materially industrial operations and Government finance even in these distant countries.