BANK RATE

Wanganui Chronicle, Volume 83, Issue 255, 28 October 1939, Page 7

BANK RATE

DOWN TO 2 PER CENT. WAR AND FINANCE Received Oct. 27. 6.5 p.m. LONDON, Oct. 26. I The Bank of England discount rate i is reduced from 3 per cent, to 2 per I cent. The rate was raised from 2 per i cent, (at which it had stood since June. 1932), to 4 per cent, on August 24. 1939, and reduced to 3 per cent, on September 28, 1939, since when there had been no change until that announced yesterday. The principal reason given for the raising of the rate from 2 per cent, to 4 per cent, in August last was the heavy demand made on withdrawals of foreign balances in London and relief of the pressure made on the British banks by such withdrawals. The influence on the Bank of England rate of events arising out of the 1914-18 war can be traced in the | changes made during that period — also that of the present war. The Bank of England rate on January 8, • 1914, was 4* per cent. It was reduced Ito 4 per cent, on January 22, and to j 3 per cent, on January 29. When, as | at the end of July, 1914, international i affairs in Europe appeared likely to I culminate in war. the rate was raised | on July 30 to 4 per cent, and next day to 8 per cent., and on August 1 to 10 i per cent. England and Germany were , i at war as on August 4, 1914. The rate, i however, was reduced on August 6 to 1 ■G per cent., and on August 8 to 5 per ! cent. i During 1915 there was no change in the rate. Not until July 13, 1916, was any alteration made, when the rate ■ was raised to 6 per cent., and so it remained until January 18, 1917, when it was reduced to per cent, and on April sto 5 per cent. That rate stood until November 6. 1919, when it was I raised to 6 per cent. The next change was made on April J 15. 1920. and the rate was then raised to 7 per cent. Changes in the bank rate after the 7 per cent, above referred to wVe made from time to time, and varied from per cent. (April 28. 1921). to 3 per cent. (July 13. 1922>. BRITAIN’S INDIAN POLICY ■ REMOVAL OF DIFFICULTIES !l Receiv'd Oct. 27. 5.5 p.m. LONDON, Oct. 26. j Sir Samuel Hoare in the House of Commons, emphasised the sincerity of j the Government’s Indian policy dur- = ing the debate on the Vice-roy’s state- : ment, and declared that any difficul- ; ties preventing Dominion status had 7 not emanated from Britain, They - were inherent in the many divisions, I classes and communities of the great ■ sub-continent, and Indians should aim o at their removal, for which reason it s was impossible that Britain should 1 give up her responsibilities to the min--0 orities. If the issue became one of non-co-operation the Government’s policy would be carried out with efficiency, strength and justice, giving i, the Viceroy the fullest support. - BETRAYED MILITARY SECRETS ? * DEATH SENTENCE IMPOSED Received Oct. 27, 6.5 p.m. PARIS, Oct. 26. c Dr. Phillippe Ross, the notorious Z pro-Nazi autonomist municipal counr cillor of Strasbourg, has been seng fenced: to death for betraying miliP tary secrets to Germany. A 20-year-d old student was similarly sentenced ». and three other members of a spy - ring were given five years' hard labour each.