Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-06-16
bank OF ENGLAND CUTS
DISCOUNT RATE To 8 IL
New Figure Just Announced
Is Lowest Since Janu.
airy, 1914.
40 REDUCTION ~ L. :. NOW
Wall street bankers Rcportcd 10 he
Afraid of the bonus Bill-Ship
subsidy and Tariff called "Nicious"
NIcasurcN.
40 REDUCTION ~ l. :. NOW
BY Il. L.. HnrniIn,.


y NEW YORK. June l5.--Poo!s and
large holders Of stocks anxious 10
take profits made the most OF early
strength in todays market, with the
result that in the second hour there
was extreme weakness. This weak
ness continued until the narke; was
sicllcf than at any Kline since last
Monday The best judges here do
not believe that The selling move
mont has run its course.
Todays most interesting news was
tho UNEXPECTED cables from London
announcing that the Bank OF Eng
land had reduced its discoun; rates
from ( 10 ; - per cent. This makes
IN. rate a iul, ! per cent below our
rate and compares with 10 per cent
In Angus, OF 1914 In January OF
lsli the rate was 3i-2 per cent.
The nov rate just announced IS the
lowest since that time. The per
cent rate has been In effect since
april Is.
Easier Money Ahead.
Later cables announced that me
Bank OF Bombay and the Bank OF
Bengal both had reduced their rates
20 ; per cent.
Since the Bank Of England made
IS last rediscount rate reduction it
has been obvious from -umors heard
here and abroad that the officials OF
that institution saw easier money
ahead and wanted 20 adjust the
credit siiua tion so that il would he
IN line with changed industrial and
economic conditions, hut heSi;atei
10 make = further reduction until
our Federal reserve hanks had re-
duced their rates Evidsn:ly they
grew tired OF waiting. and from
what was heard here and from
Washington there wer. good reasons
for taking Independent action. Sec.
rotary Mellon admitted that the
Bank o: San Francisco had applied
10 the Federal Reserve Board for
permission TO reduce Us redlscouut
rate from 4l-2 per cent to : bu,
he said that he expected no lower
Ing OF rcd!scount rates in the. near
future. X is understood that other
interior Federal reserve banks are
also strongly in favor of reducing
their rates.
From what can be learned here,
Secretary Mellon and other govern
mont officials long since adopted the
policy OF making no further rcduc-
ton in the rcdiscount rates until
definite action has been taken one
-way or another on the soldiers bonus
= tiil. 1t is feared that If rates ar.
reduced those IN Congress tavoring
soldier bonus Will say. See, money
is cheap and there - plenty az il 10
be had Why can't We get some OF
u Tor tho soldiers"
Afraid OF Honux mn.
Bankers here in Wall Street
ore afraid OF the bonu, bill They
are also afraid OF two other So
ca lied vicious" bills-,hc ship sub
stay ana the iariT. Then they are
u 81 n H.
oency OF commodity prices and
wages in View OF the s3l7o.0oo. 600
gold supply now held by this coun-
'!N' which is 80 per cen, of the
worlds monetary supply In bricf
.heF are afraid OF Imitation And
linen they want TO keep money rates
up BEYOND doubt. strone-arm
nc, mods are being used TO maintain
NIGh rates FOR call and time money.
. ,hnt IN View OF easier money the
world over such methods must ran
There IL no doubt hu, that n -
only question OF short time un,u
We 'oHow the Lead OF the Bank o,
Eng -anc. Win our recOrd-bteakinu
foi' supply We could have been
i ,e%ders INSTEAD Of having TO fan in
rr-sld-n, M~-lon Of ;ne u,ino,.
'"n tral Railroad ;ook tn. stand 10.
go a 'f'' hearings before he lu..r-.
-Stalt Nomm-rc" Commission ON tho
'1nsoi dai!on of an OF the railroads
Of the country into some twenty
systems These hearings VIII be
'ioSely followed by Wall street
"day.s London cables report ina,
an appointment has been made far
y J. Morgan 10 call at 10 Dowuinr,
s,reet Lloyd George wishing to AK
49, Hofeh" franhly wha: can be
viewpoint. 70 restore economic co,-
Hitions in Europe. IT is Indcrs,al3
ron bankers here in close toneh
wan what Went on at the p,rjs
conference that Mr.. Morgan i, bo"r.
ny IN favor ~ making Germany nat
rance. But he believes thc pa,is
Ion'eFsnce was premature and TIA.
-4ioHean nations must agree anon.
themselves regarding tho Gnr,,.,
pa'a' IONS payments ana o,hrr
nnancia! problems before ihe, ",.,
lnlerfSt American investors B., =
German loan D." :"