THE BANK RATE

Hokitika Guardian, 28 September 1929, Page 5

THE BANK RATE

• INCREASE IN INTEREST. NOT WELCOME IN LONDON. (United Press Association.—By ElectricTelegraph .—Copyright.) . LONDON, Sept. 3.7: ; ' . Tho “Daily Telegraph,” 'in an editorial, says chat 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 in recent months. Yet it would "be unwise to exaggerate the • consequence of Germany’s revival, ‘-which • has been achieved despite a ■i " far higher bank rate. It must further be remembered that;tliere is no sound alternative.’’ OBJECT OF THE RISE. 1..•'• ‘ , , % . LONDON, Sept. 27. * “The Times” says- 'The rise in the .. . bank rate was inevitable and -unavoidable, .in consequence of the unprece- '' dentedly large gold withdrawals. Tlio object of tlie 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. BRITISH CREDIT POLICY. •Vtrtr - LONDON, Sent. 27. v. Regarding the bank: rate, the LaboHir -“Daily Herald” recalls that ' the Tnrner-Mond Committee lost year .V declared that 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-Morid Commitee’s demand for an inquiry into ■' i ’ the best form of credit policy. WARNING TO BANKERS. ' • • ’ ■ , LONDON, B?pt. 26; 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 cif the Hatry trouble upon-the banking and money circles, and 'also intimated that the ' financial authorities would need to realise their responsibilities. The Bank of England Governor.re- ' minded the’bankers of the well-known ‘ views held by many members of the Labour Government regarding the nationalisation of banks.