BANK DISCOUNT RATE.

Wairarapa Age, Volume XXIX, Issue 8292, 21 November 1906, Page 7

BANK DISCOUNT RATE.

THE RECENT INCREASE. By Telegraph—Press Ansooiaton. (Per Mail Steamer at Auckland). SAN FRANCISCO, Oot. 25 The following despaioh from London, datefl Ootober 19th, caused great excitement iu finanoial oirbles in the United States:The Bank of England raised its discount to'. six per cent this morning. Changes in the rate of discount on any day except Thursday ■have neen few and far between. Not since 1890, just before the Baring failure, has the rate been put to sis per cent. The relapse in American exohange, indicating a renewal of demands for gold, an-J the probability of large withdrawals for Egypt seemed to have contributed to the action taken by the Bank of England to i!ay. Financial circles e>pect large purobusea on behalf of United States. Reports are also current that the Imperial Bank of Germany is conducting a large bullion movement for Russia's account, while the Argentine is in the market as purohaser for gold. The bank's report yesterday showed the outflow had slightly abated, the reserve standing a little over ninety-four million dollars—a gain of nearly two and a half million dollars during the week. However, this was not deemed a safe margin, as the reserve lost forty-five millions durine the past ■six W3eks. The Board of Ttade return* show the extent to which the United States absorbed this gold, Arnerioan flhipmen: being nearly sixty dollars for the first nine months of this year, as against less than five millions each of the preceding years.