INCREASED BANK RATE

Otago Daily Times, Issue 20642, 14 February 1929, Page 9

INCREASED BANK RATE

STATEMENT BY MR CHURCHILL. NO POLITICAL INTERFERENCE. (United Press Association.) <By Electric Telegraph—Copyright.) LONDON, February 12. In the House of Commons Mr F. Pethick-Lawrence (Lab.) inquired if, prior to the increase in the bank rate, representations were made to the Treasury to increase the fiduciary issue. Mr Churchill said; “ No! The only effect of such an increase would be a stimulation of the transfer of funds from Britain to New York.” Mr Petbwick-Lawrence: “Have you in mind any remedy to prevent the country’s industry being at the mercy of the speculators of a foreign country?” Mr Churchill: “ No. remedy could be more ill-judged .than political interference with the banking system.” Replying to Commander Kenworrhy, Mr Churchill said that he certainly had knowledge of the intention' to increase the bank rate. Sir R. J. Thomas: “ Isn’t it due to the premature return to the gold standard?” Mr Churchill: “ No. Many things, good, bad, and indifferent, followed the decision of ‘which the House approved, but you have no right to say any particular movement in the bank rate is due thereto.” —Australian Press Association —United Service.