A SLUMP IN MONEY.

Hastings Standard, Issue 324, 17 May 1897, Page 2

A SLUMP IN MONEY.

Once more the Bank of England discount rate has come down to the traditional minimum of 2 per cent, and the reign of cheap money begins again. From February 1894 until the 10th September 1896 the London market was suffering from a slump in the price of money. Then came the troubles in the United States over the Presidential election, and the disturbance in the world's money market was most marked The bank's discount rate rose rapidly from 2 to 4 per cent, and when the American crisis passed away the political horizon became clouded and the Bank was obliged to continue its high rate. In Jauuarv the first downward movement was witnessed, and since then the rate has deen gradually lowered to the old standard rate of 2 per cent. The effect of this we shall know presently ; indeed we are beginning to feel it already. There is a revival of business on the London Stock Exchange, which is at once reflected in all Colonial Exchanges. To those who have an interest in the gold fields of the colony, the movement in the Bank rate and the consequent cheapening of money is of special importance. Speculation in mining scrip will revive, indeed has revived, and the shares of mining companies that have been as dead as the proverbial door nail will again be quoted on 'change. From Auckland there comes the pleasant intelligence that buyers are operating more freely. The news from London is a strong point for the bulls, and if they do not make the best use of it there will be considerable surprise. Mining speculators, it is to be hoped, have profited by the recent depression. Of course w r e mean in experience, for we know too well that few if any have been able to make any other profit. We shall probably see the mining boom, which has been the prediction of the optimistic for a long time, in full swing, and the speculators devoured by the goldfever.