LONDON FINANCE

Greymouth Evening Star, 28 September 1929, Page 7

LONDON FINANCE

BANK RATE INCREASE EFFECT ON INDUSTRIES (Australian Press Association.) (By Cable—Press Assn.—Copyright.) LONDON, September 27. “The Times” says: The rise in the bank rate was inevitable and unavoidable, in consequence of the unprecedentedly large gold withdrawals. The object of the Bank of England is to stop the export of capital, which has threatened to deprive our trades and industries of the credit supplies which they at present enjoy. The ‘‘Daily Telegraph” learns that plain speaking was heard at a meeting of bankers, at which, it is understood, the Governor of the Bank of England laid the onus of the < Hatry trouble upon the banking and money circles, and also intimated that the financial authorities would need to realise their responsibilities. He reminded the bankers of the well-known views held by many members of the Labour Government regarding the nationalisation of banks.

The “Daily Telegraph’s” Parliamentary writer says: “No doubt the Government deeply regrets the necessity for the increase in the bank rate on account of the restrictive effect it will have on productive work generally, as well as on the financing of the floating debt, which will substantially affect tho Budget, and the financing of schemes for the relief of unemployment that are being undertaken by the local authorities.”

The “Daily Telegraph,” in an editorial, says that the higher bank rate is unwelcome in both commercial and financial circles. “It goes without saying,” it states, “that dear money impedes enterprise of every kind, and is not calculated to assist the revival which has become manifest of recent months. Yet it would be unwise to exaggerate the consequence of Germany’s revival, which has been achieved despite a far higher bank rate. It must further be remembered that there is no sound alternative.” The “Daily Herald” recalls that the Turner-Mond Committee last year declared it was not convinced that it was either practicable or desirable that the credit policy of Britain should be determined more or less automatically by gold movements.

The paper expresses the opinion that the raising of the bank rate strengthens the Turner-Mond Committee’s demand for an inquiry into the best form of credit policy. HATRY IN COURT ISSUE OF FALSE CERTIFICATES LONDON, Sept. 27. The four Hatry principals were remanded to October 4. Sir George Truscott was on the Bench. The defendants were seated immediately in front of the dock, which was not used. Mrs. Hatry was not present. A friend stated that she is resting in the country. Hatry looked composed and almost cheerful. The defendants chatted animatedly with their counsel, the whole scene resembling an informal company meeting, rather than a drama to which this was a prelude.

Mr Roome, representing the Public Prosecutor, said that six months after the Wakefield loan had been issued, defendants coflimitted a shocking fraud. On July 15 Daniels ordered Blades, East and Blades, who had printed the Wakefield loan scrip certificates, to print a further eighty Wakefield certificates for £5OOO and deliver them to Dixon, not to Page, chief clerk of the Issue Department of the Corporation and General Securities Ltd., who had ordered tlie previous printing for the Wakefield loan. Defendants desired to conceal what they were doing from Page, thus certificates amounting to £400,000 . were fabricated. Defendants were hard pressed for ready money. These four gentlemen, directors of an issuing house of the City of London, stooped so low as to issue worthless scrip. Russell was completely deceived. The printers had no reason for knowing these supplementary issues were in any way spurious, and accordingly they printed and delivered them to Page, whom Dixon told they would be exchanged for original scrip, which would be cancelled, if the exchange were not made. Page asked Daniels if he realised that they had issued more scrip than the amount of loans, Daniels said: “Technically we have; I am seeing to it.” Mr Roome continued: These spurious issues would be subject to further charges. There are men being ruined by the action .of. these defendants, whose uttering of spurious securities has rendered them liable to fourteen years’ penal servitude. The hearing was adjourned.