A FATEFUL CONFERENCE.
In the very early summer a Conference was held in New York between the Governor of the Federal Reserve Bank in that city, the Deputy Governor of the Bank of France and the GoN;erncirs of the' Bank of Eli4land and the Reichsbank, and there is little doubt that at the tonference in question a policy of co-operation was decided upon in order to prevent these unnecessary disturbances in the international Money Markets. Shortly after-the Conference the'official rate ofdiscount in America was lowered, and the effect for the remainder of the year was to make the London money rate slightly above New York, a circumstance which had a powerful effect upon international monetary developments for the remainder of the year. The hoped-for reduction in our Bank Rate to 4 per cent. did not materialize, but, on the other hand, any advance over 4i per cent, was prevented, and the average Bank Rate for the year was slightly below the level of 1928. Moreover, steadiness was imparted also to other financial centres, and confidence with regard to the course of money rates had a stimulating influence upon the Stock Exchange.
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