The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-11-08
BRITISH pISCOUNr +, PER CENT.
Bank of England sets Highest Figure
since nS5S-ScOldlnE America.
Special Clbic Dispatches 10 THE sUN.

= Spsciai cable Dispatches 10 THE SUS.
LONDON, Nov. THE Rank OF England.
which raisel its minimum rate Of discount
last Thursday from ~ TO So and last
Monday from 50 to e. raised II to-day TO
2 per cent.
A Bank ~ England rate "a high IA 7 has
not been known since the autumn Of 1873.
when the rate touched q The conditions
that ruled then were much the same as they
are now. There had been a period of seven
or eight years during which
amounts Of capital had been wasted in
wars. There wGs n crisis in the United
States and there vas one in Germany. and
these had caused Inconvenience in the
worlds markets
The Pan uGH ia cHc. commenting On the
probable consequences Of the high rate.
says: 1T is "A dear price Ia pay for American
financial madness"
In the stock mar,;e' American securities,
which had o. cncN aboge rarity, declined
below parity ON the receipt Of the banks
decision, whi'il, how ever. meets with the
fullest approved .: the great ciJy b%tnscrs,
who thoroughly recognize the neel of The
protective Mc1S,ire. The view he:c il
that the Ani.3.ciu GoNcrancIt OuEA' 10
take 81 ecil! Ne = - allIy The desire O.
hoard in the Iuitol state and ~ there is
no indicI,ipY 'hl' t'is il b'iu : Il me by the
Government EurJ e - hDuui - act Sc
verely on The defensive a, rrStriI il gold
reserve
Lord Aycb'uy. formerly Sir John lub-
book. who il chairman of ;hr Central AS
sociation Of Enalish Bankers. was inter-
viewed to-day and said he Thought the
present Park OF Fng'end rate would hr
sufficient and that 10 advance il any further
would he Ibiud,cIOUs. He helieN ed that
business in { raat Pyitain was thoroughly
sound and that the manufacturers were
on the Who'll" doing well lie said further
that he thought 10 would have been wiser
20 have raised the rate sooner. bat he did
not want L. question the decision of the
bank directors
When he WAS asked his views On the
financial situation to-day Lord Nathan
R%othschIld replied u have really not a
word 10 say on the situation II is, ia fact,
a case Of the less sTid the better"
The Bank of France advanced its rate Of
discount one-haif OF per cent. to I per cent
to-day
LONDON. Nov. =. Editorials Ivy financial
writers in this mornings rapers again in
sist upon the necessity for drastic action by
the United States in order to restore conf
dence and improve the currency system
The Morning Past infers that conditions
In the United States are far worse than the
news reaching here indicates and con-
tends that fhe longer action ia postponed
the worse the position will become. II
adds that America may have to swallow
the bitter pin of q forced paper currency.
The Chronicle SAYS The American Govern
ment hasadopipd an attitude Of Indifference
which fits badly with the crisis. h policy
of waiting is a good one when the disease
is durable by patience. but when immediate
action is needed waiiing is u vice. not a
virtue. =
The DciIi Mail ie,Iores that by he law
under which th" innocent are oblig- -
suffer with the guilty English business
is heavily Ieaalizei for transatlantic Of
fences. II insists upon the necessity for
increasing the British gold reserve aad
asks whetheg il is 10 the real interest," Of
the nation that London, with its present
ANAL reserve. should lee the only free gold
market.
The situation "vokes from the FiHdHcidl
.NeWs sympathy with ID" character in a
play who derl5rrd that Columbus did rot
discover America. htt the previous dis
coverers had the -"nsr Ia bold their tongues
about it.
The Financial Times, despairing Of
America ceasing t. import gold even IL
the rat : is raised - 10 per cant, insists
that European centres must De compelled
To share the len To- Keeping up the
rate.
IL is rumpr"i HAT a large f1rt Of the
recent ngagc ,nts Of gpll for the United
States were cancelled yesterday
IL is believed that the Imperial Bank
Of Germany will raise its discount rate
to-day. which j. now Ga per cent. to "a
or even y per cent The banks in Belgium.
Bengal and Bombay raised their rates
yesterday