BRITISH CREDIT

Grey River Argus, 1 August 1931, Page 5

BRITISH CREDIT

FURTHER DROP In Gilt Edged Stocks | BANK RATE RAISED HIGHER. LONDON, July 30. , The Bank rate has been raised to ' four and a-half per cent. Overdrafts, long s'ationary at 5 per I cent, as the result of the rise in the | bank rate, which also depressed gilt- [ edged stocks. i( i (Aus. & N.Z. Cable Assn.) ! (Received- July 51 at 9.50 p.m.) I LONDON, July 31. Though the increase in the Bank i rate expected, its announcement caused a drop in British funds of one to two points. This drop will necessarily postpone for a long- time Mr Snowden’s conversion plans. ; Indian stocks, and Australian stocks I practically are nor affected. The “Evening Standard’s” City Editor says: “Though the increase in the Bank rate was necessary .to prevent funds from going abroad, the new rate will injure industry and commerce, which will have to pay at least 54 per | cent, for Bank loans, as the Banks . will not. give industry the full benefit iof cheap money. They should not pass on the increased rates immediately. More Gold for France ! BANK’S STRONG POSITION. ( J (Aus. & N.Z. Cable Assn.) | I (Received July 31 at 10 p.m.) j PARIS, July 31. < I Simultaneously with the increase in I i the Bank rate in England, the Bank of France has announced that its gold holdings have increased by ’en millions sterling to £463.250,000, thus re- ' presenting 56J of .the Bank’s note issue. , HELP FROM FRANCE. TO SUSTAIN THE £l. LONDON, July 30. It is understood that France has not granted an actual £20,000,000 loan, or credits to Britain, but agreed to a private arrangement whereby a consortium of leading French hanks, agreed to provide £20.000 for purchasing sterling bills re-discountable at the Bank of France. Thus France has agreed to make no further inroads o n sterling, which has already strained its resources to the utmost. LONDON July 30. The Foreign Exchange rate on Montreal i s 4 dollars 87 5-8 cents per £l.