New Britain herald., 1914-07-30
|ORE|CN. BANKS RAISE
 | RATES OF DISCOUNT
lank Of England Adds Entire Point as Protective Measure.

London, July 30.-As had been an- icipated, the Bank of England today |aiSed it's minimum rate of discount Tn entire point, making it four per lent. The step was taken as a protec- I've measure in view of the chaotic fnancial conditions on the continent IOllowing the outbreak of war bel tween Austria Hungary and Servia Ind the almost general advance of the fank rates in continental centers. By discounting bills freely during he past few days while ordinary ources for discounting were prac- fcally suspended and by arranging redits in connection with gold com ng from New York while American Exchanges were so difficult to obtain, he Bank of England, considerably re- Eeved the financial world. Now, how aer, that raid is being made on Is gold supply by the continent of Europe the Bank of England has pund it necessary to take protective leasures.
 5000, 900 Went Out Yesterday.
 Something like $5,Oo0,000 in gold .ent out yesterday France secured ractically the whole of the $5,0O0,OO0 mich arrived from South Africa on uesday, and although $15,00O,00O is ulning from New York to pay for se- urities sold recently this sum can ardly arrive in time to offset any X-~- k1,- The Bank of England return is ex- -ccted to show a large increase in the ban business, a smaller gold stock nd a sharp shrinkage in the propor- on of reserve to liabilities which the fgher bank rate and the expected old arrivals will partly restore.
 Action Is Essential.
 The continental financial and politi- hl situation, however, is so acute Bat it is essential for the chief finan-. al institution in London to take easures of protection. The open scount market will be able to work ore freely now that uncertainty has zen removed with the establishment
 a higher official minimum bank tte.
 Absolute gloom prevailed today on Rc stock exchange. Yesterdays crop failures and the fact that there was b improvement in the European isis had a most depressing effect rQkers stood. about in groups wait kg for something to turn up but they eclined to do any business. Quota pms were somewhat under yester- iy's figures but were purely nominal, hd what little business was done was matter of prolonged negotiations.
 British Consols Low.
 British consols opened at yester- by's low record of 69 1-2, which was 1-2 below yesterdays closing price. hey quickly recovered half a point, pwever, to the price at which the pyernment broker was buying.
 The only other transactions heard
 were in Canadian Pacifics, which eened at 167 and then fell to 165 1-2,
 half below parity.
 The haHnmer whose tapping on the esk announces failures on the stock kchange was heard early today when bother firm with large continental bnnections,l announced that it was hable to meet it's obligations. All ke failures thus faf announced have ben of firmsswhich do continental lsiness.
 The change tin the bank rates had b effect on the market as it had been hticipated.
 The failure on the Stock Exchange bis morning was that of the Derep- urG company.
 naised to Five Per Cent.
 uaels. July s0.-ThrsJ rate of dis
 cfthe Bank. of Belgium was