New-York tribune., 1907-11-08
FOREIGN BANK RATES UP.
1duances IN London, Paris and
Brussels Berlin to FOLLO1c.

BruSSeLS-BerlIn to F0tLOtc.
London. Nov. The directors OF the Bank Of
England put I'D the minimum discount rate this
morning from to per cent.
The only thing which could have averted this
heavy rate would have been assurances from
responsible quarters in New York that the situa-
tion there, which il is recognized is due to the
exceptional demands upon capital in conse-
quence OF the great commercial activity IN
America is sufficiently well in hand 10 warrant
the expectation that there would be an early
cessation of the gold drain on this market. In
The absence of such an assurance the Bank of
England utilized the only weapon at hand to
protect its reserves
L is realized however. that even this high
rate may not prevent shipments Of gold 70 New
York. but it is hoped that II may attract the
metal from abroad in sufficient quantities to
restore the equilibrium. The step was doubly
necessary. as the bank must nurse its supple;
just at present. for the autumn country cash
requirements have TO be met well the
usual Egyptian demands. ana there is a posi-
bity Of demands for gold from Argentina.
The last occasion when a per cent rate was
enforced by the Bank of England In 1873
and was due to financial troubles on the Con-
tinent and in America On that occasion the
rate eventually reached 9 per cent, but it quickly
fell 10 AZ
The local business community is bound to feel
the pinch. and the flnanciers anticipate that the
drastic rate viii cause even greater squeeze
in Germany, with a consequent increase OF the
discount rate of the Imperial Bank and selling
orders from Berlin.
The announcement OF the Increase of the Bank
iOf Englands rate by full point had a strong
EFFECT on the Stock Exchange here. Consuls
which opened 3-16 higher, owing TO the settle
tEJaeN ne
half q point. Home rails started one to four
points dearer, but lost most of the advance
within few minutes. American rails had sim
l1iar experiences. The opening prices ruled
laround parity, but drop OF a point followed
Immediately after the publication of the bank
rate and selling brought quotations at noon
down TO one TO three points lower than yester-
0ay.
IL was not until the bank statement was
issued that the markets fully realized how heavy
had been the drain the gold reserve The
figures showed the weeks decrease 10 be ga
1Ss.S07. the total reserve being a176s4795.
against 20,S33,602 last week and Gl9.076 3eb at
1his time last year
Lord Avebury. chairman Of the Central Asso-
citation Of English Bankers. said he thought the
present bank rate would prove sufficient and
that it would be injudicious 10 raise it further
He expressed the opinion that it was the pros
perity of the United States which gave rise to
the temporary financial difficulty there Lord
Rothschild declined to discuss the situation
but the general opinion in Lombard Street
seemed to be that the root of the trouble would
remain until the American Congress adopted
measures to secure fTeer currency
The bank Of England bought Il ,1O1 900 IN
American eagles to-day and sold f237,O in
American eagles for shipment to the United
states. With 100000 in gold received from tho
Continent the Bank of England's reserve was
increased to-day by the net total Of 1913 900
There were inquiries in the market this morn
ing for another E1,250O0O in gold for America
Paris, Nov. THE Bank of France raised its
discount rate from 312 TO per cent to-day. and
advanced the rate on loans from to Az per
cent The directors considered the increase in
the discount rate 10 be imperative in order to
protect the Paris money market from the drain
TO which it has been subjected by the high rates
prevailing in other markets as wei! as the high
exchange rates. The decision TO relieve tbe
London market OF its excessive demands is
shown by The large increase in the Bank Of
Frances rate on loans the unusual step OF rails
ing the rate on loans above the discount rate
being taken for the special purpose of discour-
aging the foreign demand
The increase in the discount rates of the Ranl,
of England and ;he Bank Of France adversely
affected business on the Bourse to-day, and the
EeaT,iness was increased at the close by a fail
fn Portuguese government securities, caused by
the high premium on gold at Lisbon, which rose
yesterday from 81 To per cent
BolIoas, Nov. THE rate of discount Of the
Bank q Bombay was raised to-day from TO D
per cent.
Perrin, Nov. IA meeting Of the central com.
F:!;tee cf the Imperial Bank of Germany has