Abstract

Finance

The somewhat unexpected advance in the Bank of England's official discount rate, last Thursday, the first advance since 1907, came with a rise in the Imperial German Bank's official rate from 3 and half to 4 per cent, and was followed, on Monday, by a further advance at the German bank to 5 per cent. In the week before the London, England bank rate rose, surplus reserves of the New York Associated Banks were reported at $1,600,000, the lowest figure reached at the opening of October in exactly twenty years. When the German bank rate advanced last month, the president of the bank publicly stated that the marking-up of money was intended to curb the excesses of stock speculation at Berlin, Germany. The rise in the Bank of England rate was as clearly recognized as a warning to speculative Wall Street.