| Show LONDON LOWERS CREDIT PRICE PRIE Moderate Inflation Has Help ful Influence on British Business LONDON Feb 18 The A The Bank Bak of England extended a helping hand had to the commercial community and a financial gesture of confidence to t the world today by reducing the bank rate from 6 to 5 per cent cent The 6 per percent percent percent cent rate was Imposed on September 21 1931 when the the- country went off country the gold standard Soon after the announcement In street word came from irons Stockholm and from Oslo that the bank bak rate in both Sweden and Norway Norway Norway Nor Nor- te way had been reduced from tom 6 per percent percent percent cent to 5 2 1 per cent cent The improvement in the international international inter inter- iter national outlook and the result resul of preliminary preliminary pre pre- conversations regarding the Lausanne Lusanne conference were taken to tobe tobe tobe be one of of the guiding factors in the bank bak rate reduction but the chief chie reason is cheaper money and the fact that market marke discounts discount have fallen falen to such a low level as to make a 6 per percent percent percent cent rate Ineffective Retaining the higher rate it i was decided is no longer required as a steadying influence on the pound poud sterling and large gold shipments from om India Idia in recent weeks week were also given as a helping factor It I is very unusual for the authorities ties tes to lower the official minimum by 1 per per cent but with wih trade slowly recovering and with the advantage derived from the depreciated deprecated pound sterling they decided to give commerce com corn merce and trade a further fillip and they expected the reduction would woud assist export industries There will wf be a corresponding lowering of bank deposit rates which were expected to release money for industrial purposes purposes purposes pur pur- poses which heretofore had been de deposited deposited de de- posited in order to get the high in interest interest in- in terest rate No one professed to know whether the action acton of the bank was influenced by the United States The Bank of ot of England has an American adviser and md collaboration on such matters maters suc sometimes occurs occur but the deliberations delibera delibera- tons were held In i the parlor of the bank carefully guarded so that the mone money market and ad the world word generally generally gen gen- might be l left t to make their own deductions mae Coming at a time when the far eastern east east- eat em ern situation was considered delicate commentators in the maket market said they considered the reduction more In Interesting In- In i- i than tha usual and that the measure indicated the advisers of the bank bak who have special facilities for testing world affairs have confidence con con- in the immediate future The stock had been honin a reduction f for r weeks weck but tY the dr drop p of a full ful 1 per cent came as a surprise surprise surprise sur sur- prise and the values of gilt edge edge gi-edge offerings offerings of of- were marked up immediately Other sections followed with a hardening t tendency and it i was was was' wih expected ex ex- that with wih bank deposits deposit being be be- i ing g withdrawn for investment because because be be- cause cue of the lower interest rate business business bui- bui busi busi- ness nes should show an increase increase The Te move toward cheaper money also will wi allow alow the treasury to borrow borrow bor bore row at a lower rate and the way is also being cleared for a war wa loan conversion conversion con can version verion plan pla which authorities have had under consideration for tor some time Norse Bank Rate Cut One Half Per Cent OSLO Norway Feb 18 The I-The The The Norwegian bank bak rate was w reduced today toay from 6 per cent to 5 2 1 per percent percent percent cent cent Sweden Lowers Price of Money STOCKHOLM Feb 18 iP P Reduction ton tion ot of the Swedish bank rate from 6 3 to 5 2 1 per pe cent was authorized today oday tomorrow the reduction to take effect |
