RISE IN THE BANK RATE.

Wanganui Herald, Volume XXXX, Issue 12003, 22 October 1906, Page 5

RISE IN THE BANK RATE.

Causes Depression on Stock Exchange. Preaa Association.— Telegraph— Copyright. Received October 21, 5.16 p.m. LONDON. October 20. Tho rise in the bank rate to six per cent, is ?nt iroly due to a demand for gold. It it, understood that the directors were, aware that .£900,000 will probably be required today for Egypt and elsewhere, but learnt yesterday that further large sums were likely to be required by Egypt, America, and Canada next week. While the American Exchange is moving adversely, it is hoped that six per cent, will not only check the withdrawals, but attract gold. The newspapers apuland the directors for protecting our small reserves. The announcement quite demoralised tho Stock Exchange, and caused a general slnrip in all speculative stocks. Consols fell to 85;;. but afterwards recovered, and on Friday closed at 85 5-16. Colonials are practically unaffected. A occurred in Wall Street, and -ill stocks dropped from two to eight point ->. The foreign bourses are depressed.