The New Zealand Railways Magazine, Volume 6, Issue 3 (August 1, 1931)
Bank Rate and Gold
Bank Rate and Gold.
Under pressure France did, concede something, but “Paris political circles,” on 23rd July, referring to the just concluded Seven Powers' Conference, claimed that she had conceded little, that the Conference results were relatively unimportant, and that France had secured “a diplomatic triumph over Mr. Snowden.” Whether or not there is any truth in the report of the Laval-Henderson incident, appearing in the Daily Telegraph, the fact remains that London gold again began to drift to France. At first London cabled that “the city was unperturbed” over this recrudescence of the gold drift, but the tune soon changed. On 23rd July the Bank of England discount rate, unusually low at 2 1/2 per cent., was raised to 3 1/2 per cent. Meanwhile, experts of all countries are engaged in implementing those Conference decisions that Secretary of State Stimson says will meet any new line of development the financial drama may precipitate.