12 AUGUST 1966, Page 8

be Zpectator

Aukust 11, 1866

'10 per cent.' which a few weeks ago was only a nuisance. is becoming a calamity, checking not only speculation, but ordinary trade. No one will do anything he can help while he has 10 per cent. to deduct from his receipts and to pay for his loans, the country bankers think it necessary to hoard, and the Continent refuses to believe that England has not suspended cash payments. Exchange was on Friday a little less unfavourable to Great Britain, but the Bank still considers it unsafe to reduce its rate, and the Government is still Unwilling to sanction a suspension of the Act without the restriction fixed by Mr. Gladstone.