CAUSE OF THE INCREASE.

Colonist, Volume LVII, Issue 14139, 15 July 1916, Page 5

CAUSE OF THE INCREASE.

SHARP RISE OF AMERICAN MONEY;

(Australian a»d N.Z. Cable Association)

(Received July 14, 8.50 p.m.) London, July 14, The rise of the bank rate is duo to tli-3 sharp jrise of money value in New York since the end or last week, probably the outcome oF America's loan "operations, including the loans to the Allies, and also expansion of-trade activity. The rise in JSfow York c&mo as a surprise to London, as it- was believed that considerable loanable capital was still a/vailafele in America. The possibility of a-rise in the London bank rate was only seriously envisaged last evening. Financial, circles generally approve of the step as a precautionary measure designed to promptly allay the feeling of unrest. Tho future depends chiefly on American developments. It is hoped that the increased rate will be only temporary, but it is to be regretted th.t it may indefinitely postpone the 1 Vlg long-dated war loaji -which was aviHripated in many quoters.