UP GOES BANK RATE
[By Electric Cable—Copyright.] [Aust. and N.Z. Cable Association.} (Received Friday 7 p.m.) LONDON December 3.
The increase in the bank rate is due to heavy withdrawals of gold from London, amounting to nineteen millions sterling since August -6, also the prospect of further withdrawals, owing to the rubber boom. In addition, Anglo-American monetary stringency is reflected in the weakness of tho dollar exchange. Industrialists condemned the increase, believing it will check the revival of trade. The “Standard” expresses the opinion that the -increase is a precautionary measure, necessitated by the Government's heavy borrowing to pay dividends instead of selling Treasury Bonds, in which there is a possibility of inflation, which is anathema to supportora of the gold standard.
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Bibliographic details
Manawatu Times, Volume XLIX, Issue 2314, 5 December 1925, Page 9
Word Count
122UP GOES BANK RATE Manawatu Times, Volume XLIX, Issue 2314, 5 December 1925, Page 9
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