OCR Text |
Show BANK OP ENGLAND RAISES DISCOUNT RATE LONDON. March 17. The directors of the Hank of England at their weekly meeting today raised tho minimum rate of discount from 3 to 4 per cent. This action was caused by tho continued foreign for-eign demnnd for gold, which considerably depleted the bank's reserves. These are now nearly 825.000.000 lower than at the same time last year, and prospective further withdrawals of the metal necessitated necessi-tated measures to Increase the banks holdings. For some time India has been drawing draw-ing heavily on the available supplies of gold and considerable sums arc still wanted to move the large crops. In addition ad-dition to this demnnd. there is a large number of foreign Issues, including a big delivery of American bonds In exchango for British gold, to be provided for. Forthcoming Internal monetary requirements require-ments also demand the building up or the reserve- It Is quite unusual for the bank rate to be advanced at this time of the year. No doubt one of tho chief causes therefor there-for Is tho government s failure lo collect col-lect taxes. This made money so plentiful plenti-ful that it weakened continental ' exchange ex-change on London and made it easier for foreign markets to lake gold from this center. |