INCREASE IN BANK RATE

Taranaki Daily News, 5 October 1929, Page 9

INCREASE IN BANK RATE

VIEWS OF THE CHANCELLOR RESTORING OF EXCHANGES MOVE IN BRITAIN’S FAVOUR By Telegra.ph—Press Assn.—Copyright. Australian Press Association. Received Oct. 4, 7 p.m. 4 London, Oct. 3. The outstanding feature of the Labour conference at Brighton to-day was the speech of Mr. Philip Snowden (Chancellor of the Exchequer) in detailing the effects of the bank rate upon the labour market. He boldly proclaimed it was of no use railing at the Bank of England's raising the bank rate. It was the only means in the existing conditions to restore unfavourable exchanges and as a corrective to the drain on British gold. The rise had been delayed as long as possible. A time of greatest strain on British exchanges was approaching when it was necessary to pay for food, cotton and other raw materials. If the payments were not in sterling at a discount the cost of raw materials would be considerably increased. ’ The rise in the bank rate had turned American exchange in Britain's favour, with the same result in every country in Europe except France, and even there a movement in Britain’s favour had begun. The effect of the rise on British funds was negligible. It was also folly to attribute the growth of unemployment and the decline of exports to a single cause. Referring to the Hatry financial crash the Chancellor said he must await the facts before ■ deciding on the necessity for amendments of the company law “I hope the committee will be able to throw’ light on our darkness,’’ he said. 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speech was a Scottish motion in favour of bringing the currency and banking finance under national control, which was withdrawn.