BANK DISCOUNT RATE.

Wairarapa Daily Times, Volume LV, Issue 8612, 20 November 1906, Page 6

BANK DISCOUNT RATE.

The Recent Increase

(By Telegraph—Press Association.) (Per Mail Steamer at Auckland.

Sak Francisco, 25th October

The following despatch from London, dated 19th October, caused great excitement in financial circles in United States : -

The Bank of England raised its discount rate to six per cent, this moraing. Changes in the rate of discount on any day except Thursday have been few and far between. Not since IS9O, just before the Baring failure, has the rate been put to six per cent. The relapse in American exchange, indicating a renewal ff demands for gold, and the probability of large withdrawals for Egypt seemed to have contributed to the action taken by the Bank of England to-day. Financial circles expect large purchases 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 purchaser 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 millions during the past week. However, this was not deemed a safe margin., as the reserve lost forty-five during the past six weeks. The Board of Trade returns show the extent to which United States absorbed this gold, American shipments nearly

sixty million dollar for the first nine months of this year, as against less than live millions each of the preceding years.