London, July 27.
The drain of gold from the Bank of England to France is ending and sterling is holding its ground. Both the franc and the dollar exchanges, are now at a level where it is un-Profitable to ship gold abroad. Over thirty millions sterling left the Bank of England in the past fortnight.
Suly 27.
The cessation of the flow of gold }from: London to Paris yesterday is Jascribed to the ce-operation of leading British and French bankers, Reuter message from New York says that Wall Street is elated at the stoppage of these gold exports, as banking circles recently threaten the gold standard as a vehicle for international trade and ead to an unsettling agitation in mulation of gold stocks in Paris and New York with increasing apprehension, Some financial authorities feared "that these stocks would favour of hi-metallism.—Reuter.
London, Aug. 1.
The conclusion of the agreement, for @ grant of credits to the Bank jof England is regarded in London Jas the. most important step itf the progress of international banking ce-operation since the War.
The three banks concerned are luuable to call upon one another for assistance when needing Bank of England can thus avoid further disturbance of conditions which might result from the usual methods of supporting sterling, such as a further rise in the bank ate.
Aug. 2.
The Treasury yesterday authorised ithe Bank of England to increase its fiduciary note issue by £15,000,000, making the total £275,000,000. This increase is authorised for three weeks. It is a purely precau measure, for which the Bank ai few days ay very severe drain on the Bank's gold stocks, coupled with the prospect lof the usual withdrawals of cash by ithe public around August bank holiday While the present reserve of the Bank of England should be adequate {for all nom.nal requirements, it was Jconsidored prudent to arrange for Jan increase of the fiduciary note sue.
Meanwhile, it is pointed out that the Franco'American credit arrange-iment with the Bank of England is fa purely temporary measure to tide lover the difficult period between now lund the re-opening of Parliament lat the end of October, when responsible banking authorities hope, the (Government will prove conclusively that the budget will be balanced by means of economy.—Reuter, Paris, Aug. 1.
An agreement has been definitely reached between Sir Robert Kin-Wdersley, the Bank of France and ithe Federal Reserve Bank of New! york for a grant to the Bank of [England of credits amounting to} $50,000,000, the Bank of France lard' the Federal Reserve Bank New York each putting up £25,-
Sir Robert Kindersley, one of rectors, represented the Bank lof England ' in the negotiations Tending to this agreement, Aug. 1.
Official announcement that the Bank of France and the Federal Reserve Bank of New York have [jointly arranged a credit of £50,- 000,000 to the Bank of England iwas made here to-day, in Paris and jin New York. Simultaneously the British Treasury issued a minute authorising the Bank of England to weeks.
It is understood that Great Britain's " August currency demands make necessary a further issue of
aspects that the gold reserve wi notes, and since there are no, pro-strengthened in the immediate fature it was. necessary for the Treasury to grant to the Bank of England power to increase its fiduciary issue.
The oficial announcement made lat the same time that the Treasury issued its minute declared that the Bank of France aiid the New York Federal Reserve Bank have each granted to the Bank of England credit of 25,000,000 at an interest rate of Si per cent.
The announcement of the £50,- 000,000 credit to the Bank of England followed the conclusion of negotiations between. Sir Robert Kindersley and M. Moret in Paris this morning. Sir Robert, who is a director of the Bank of England, Jend M. Moret, the governor of the Bank "of France, conversed by radiophone from Paris with officials fof the New York Federal Reserve Bank in New York.
The arrangements made in Paris have done much to alleviate the situation created by the recent heavy withdrawals of gold from [London and which caused the Bank lof England on successive Thursdays to increase its discount rate first to 84 per cent, and then to 4 per During their conversations in Paris Sit Robert Kindersley and M, Moret agreed that the Banks of Prance und England will provide mutual support in the event of abnormal gold movements in the {future and they will work together [to equalise the distribution of gold throughout the world, financial circles labraad there is grat Banks of England and France and with the Federal Reserve Bank of New York have been abl four an arrangement which i restore confidence in the mi la highly disturbed international situation.
M. Moret is one of the leading financiers of France while Sir Robert Kindersley, as the chairman lof Lazard Brothers and other great [British firms, is one of the world's most able financial experts.—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.