BRITISH FINANCE.

Wairarapa Daily Times, Volume 46, Issue 14100, 19 April 1920, Page 5

BRITISH FINANCE.

DEARER MONEY POLICY. RISE IN BANK RATE. (By Electric Telegraph.—Copyright.) (Imperial News Service.) LONDON, Saturday. In connection with the advance in the bank rate, the policy of dearer money lias been adopted in co-operation, with the Treasury, wiiich has raised the rates on Treasury bills. It is thus hoped to curtail credit expansion and speculation, and to encourage the holders of Treasury bills to renew them as they fall due, thus generally strengthening the country’s financial position. Opinion in the city is divided as to the wisdom of the policy, but it is agreed that the rise emphasises the necessity for dealing with the enormous floating debt in such a way as to remove its disturbing influence on the

money market. The rise in the bank rate is also connected with the exports of gold to Americt for the purpose of repaying the erica for the purpose of repaying the maturing in the United States in October. The stoppage of the export of specie is not contemplated, but it is hoped that the rise will prevent other inroads on the bank reserves. (An earlier cable message stated: — There is a fairly steady tone prevailing on the -Stock Exchange as the results of the raising of the Bank of England rate to 7 per cent became appareut. The weakness in the prices of Colonial securities has been"accentuated by the joint stock banks raising their deposit rates to 5 ‘per cent. It was also announced that the rate for Treasury bills had been raised to 61 per cent.)