BANK RATE

Hokitika Guardian, 5 October 1929, Page 5

BANK RATE

RISE DEFENDED. (United Press Association—By Electric Telegraph—Copyright). LONDON, October 3. An outstanding feature of the. Labour Party’s Conference at Brighton was the speech of the Rt. Hon. Philip Snowden (Chancellor of the Exchequer). In detailing the effects of the bank rate upon the labour market, he boldly proclaimed that it was no use railing at the Bank of England' for the rise in the hank rate.

‘(The rise,” he said, “was the only means in the existing conditions to restore exchange. It was delayed ns long as possible. A time of the greatest strain on our exchanges was approaching, when it was necessary to pay for ffood, cotton, and other materials. If these payments were met in sterling at a discount, the cost of the raw materials would be considerably increased. The rise in the Bank rate has now turned the American exchange in our favour, with the same result in every country in Europe, except France and even (there a movement in Britain’s favour has begun.” Tlie effect of the rise on British funds, he said, was negligible. It also would be folly to attribute a growth of' unemployment and a decline of exports to a single cause. Referring 'to the Hatry case, the Chancellor said that he must await the faT.s before deciding on the necessity for amendments to the company law. He said: “I hope that the Committee will he. able to lirow light on our darkness.”

The effect of Mr Snowden’s speech was a Scottish motion in favour of bringing the currency' and banking finance under national control, which was withdrawn.