NATIONS’ FINANCE

Manawatu Standard, Volume LI, Issue 207, 3 August 1931, Page 7

NATIONS’ FINANCE

AGREEMENT FOR CO-OPERATION. BRITAIN, FRANCE, UNITED ' STATES. ... . CREDIT FOR BANK OF ENGLAND; (United Press Association —By Electric Telegraph.—Copyright.). LONDON, Aug. 1. The Bank of France and the Federal Reserve Bank of New York are granting the Bank of England credits amounting to £25,000,000 apiece. This announcement means that an agreement has been reached for financial cooperation between France, Great Britain and the United States whereunder the dollar, franc and the pound have been placed on a more co-operative basis than ever.

London, having granted large credits to Germany, requires an assurance of freedom from strain of the continual withdrawal of foreign credits. It may not be- necessary for London to draw upon these credits; they have been arranged solely as a precaution., Moreover, as the credit arranged is triangular, any one of the three banks can call on the assistance of the others if necessary. Interviewed in Paris after the announcement regarding the bank credits, Sir Robert Kindersley said: “The arrangement has given me great satisfaction because it constitutes a guarantee in time of crisis of the solidarity and complete co-operation of the central banks of, Paris and New York. Sudden and unreasonable movements of gold tend to disturb confidence; they are' also embarrassing to the loser and to the recipient. Ihese steps have been takefi to obviate such movements, but the basic necessity for the establishment of confidence and prosperity is a real and lasting understanding between France and Germany, which it is everybody’s dutv to assist.” GERMAN BANKING FACILITIES. BERLIN, Aug. 1. •An emergency decree restores full banking facilities on August 5. The bank rate has been raised to 15 per cent. In Lombard the rate will be 20 per cent, to-morrow. GOLD MOVEMENTS. (British Official Wireless.) RUGBY, July 31. The Secretary of the Treasury, Mr Pethick Jjawrence, replying to a question in the House of Commons, said that he understood the Gold Delegation of the League of Nations was meeting again next month with a view to considering its final report on the whole subject of gold movements.