BANK RATE RAISED

Evening Star, Issue 23354, 25 August 1939, Page 10

BANK RATE RAISED

DISCOURAGING WITHDRAWALS OF FOREIGN BALANCES MONEY MARKET UNDER BANK OF ENGLAND CONTROL LONDON, August 24. (Received! August 25, at 8 a.m.) The bank rate was fixed at 4 per cent. It had remained unchanged at 2 per cent, since June 30, 1932. The decision will result.in a heavy call for money on the banks, and is tantamount to placing the money market under the control of the Bank of England. Financial circles are of the opinion that the raising of the bank rate is designed to discourage withdrawals of foreign balances. GILT-EDGED SECURITIES MINIMUM PRICES TO BE FIXED (Independent Cable Service.) LONDON, August 24. (Received August 25, at 8 a.m.) The committee of the Stock Exchange decided to fix minimum prices for gilt-edged securities. LONDON, August 24. (Received August 25, at 10.30 a.m.) The Stock Exchange Committee has fixed the minimum prices of gilt-edged securities as follows: 2£ per cent. Consols, £62 10s; and War Loan, £BB 10s. DEALINGS IN BRITISH FUNDS BANNED DOMINION SECURITIES DOWN LONDON, August 24. (Received August 25, at 10. a.m.) The Stock Exchange Committee has banned dealings in all British funds. Dominion, and colonial securities are at a less price than the lower of the prices quoted in the official list on June 23. The banks decided that the rate of interest on deposits, subject to seven days’ notice, will be 2 per cent, until further notice.

NEW YORK MARKETS FOREIGN BONDS SLUMP NEW YORK, August 24. (Received August 25, at 2 p.m.) Foreign bonds slumped as much as five points. Nine United States Government issues reached new low levels. Selling is heavy in Austrian, Belgian, and Polish issues, which are off one to three points. New York banks heard that unless there is a sudden improvement in London the foreign exchange market will close to-morrow or restrict business to normal proportions. Sterling futures sank to 35.8 cents below the spot rate, which the equalisation account held firm at 4.68}. Selling waves swept the Montreal and Toronto exchanges. Wheat closed 1} higher at Winnipeg. NEW ZEALAND FORCE ALL LEAVE STOPPED [Per United Press Association.] WELLINGTON, August 25. All leave in the New Zealand Army, Navy, and Air Force has been stopped. Making this announcement to-day, the Minister of Defence, Mr Jones, said it was merely a normal and obvious measure of precaution. FILLIP TO RECRUITING The effect of the tension in Europe war. reflected in the enrolments for the National Military Reserve yesterday, the number enrolled being nearly double the daily enrolments during the past week The average of enrolments recently has been about 70 daily; yesterday it was 130. The state of the reserve is: Class 1, 2,258; class 2, 7,063; class 3, 5,287. In addition 2,953 men who are not eligible for service have enrolled, making a total of 1.7,561 V 14,608 effective reservists* «