WRY THE RATE ROSE.
• Ostensibly the prime cause of the rise in the Bank Rate was the fact:that within a period of five months the Bank • of England has lost nearly £27,000,000 in gold, and for that reason alone there was need for raising the official rate of interest. What, however, it will be asked, was the cause of the Bank losing this large amount of gold ? The cause was due to certain of the Foreign Exchanges, and notably the German and the United States rates, having moved so greatly against this country as to make it more profitable for those who had to remit to New York or Germany to make such remittances in the form of gold. ' Quite rightly, however, the further question will be 'asked, what caused the Foreign Exchanges thus to move against us ? And it is when we begin to probe the matter a little more deeply that we get at the fundamental reasons for the rise in Bank Rate.
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