New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-27
TIE MOVEMENT or MONEY.

| The Bank of England advances its rate of
discount from 3 to per cent. This step has
peen thought not improbable, though the adj
vance would probably have been not more
| than half OF per cent if the loss of specie nv
| the Bank had not been unusually Iarge last
week. With 100000 going out in one week.
| and the specie reserve reduced already to
| E23,761 $50 the directors evidently iud,od
that gradual advance in rate would fail 70
protect the reserve with sufficient promnt-
ness The meaning of this step, however
| is likely to be misunderstood nv MANY
1t is commonly supposed to be an effort to
| prevent specie from going out to this country
| but the bank directors know that if the money
is due to this country, and is needed here if
VIII he moved In spite of a much greater adj
vance III rate at London The real aim is tn
| cause money to gravitate to England from the
Continent, so that, If the outflow to this country
continues, Great Britain may collect money from,
other countries which owe her as ranidv 40
money that is due to this country is paid. I'm
doubleday, subordinate effect of the advance
was also considered and intended namely
that the higher rate of interest in Jondon
may lessen the amount which this country will
demand But if the need for money here 10
greater than in England, the rate of interest
here will also advance, if that should be me-
cessary in order to bring the money In that
case, England must look to other countries
where the need for money is less than # is
there, and draw from such countries the sun
Plies required by New-York. At present tba
current rate OF interest here is about Der
cent' against per cent at London, so that
considerable further advance in Jondon
might be made without any effect unon Tho
shipments OF specie to this country. The oues-
ton for England is whether 4 Der cent will
suffice to draw money from the Continent.
The Continental banks understand the mat.
ter, and propose to defend their reserves If
they can. The advance to per cent by the
Bank OF France on Thursday followed by an
advance to per cent by the Bank of Ger
many on Friday, does not indicate to The Inn
don Times that money will cease to 90 tn
America IN TACT, 1t expresses the opinion that
more gold VIII be drawn for shipment immed-
a'ey' Inc continental banks have large re-
serves OF specie behind them in the vast
amount Oh com distributed among private hold
ers' ana are able at all times to draw largely
from that source by raising their rates.
or to compel those who would exnort
gold to pick it up by private purchase. This
has been done already, to some extent. and IL
is said that 100000 francs in gold was I!
sold by the Bank of Russia recently, of which !
two-thirds, or about $6,OOO,OOO, was taken
In Paris for shipment to this country. Large
sums will be drawn from private boards in |
all the Continental countries, and especially
In France, whenever the rate of interest ut |
the banks is unusually high, so that any drain
TO this country will fall less heavily upon the |
great banks, and will be supplied in a large
degree by Withdrawals from private holdipes
There is said to be about So, ZOO. 600 Al. |
ready on the way hther from Europe. This |
movement of course. it 10 too late to prevent