5 OCTOBER 1929, Page 3

The Bank Rate On Thursday, September 26th, the Bank Rate

was raised from 51- per cent to 61 per cent. As was expected there was some outcry from industrialists who said that all their schemes for developing business would be thwarted by dearer money. A rise in the Bank Rate inevitably causes a considerable dislocation for a time, but it must have been foreseen by anyone who had watched the conditions carefully that a rise could not be long delayed. Most people were surprised that it had been delayed so long. A rise in the rate is the only proved remedy for a steady outflow of gold. The remedy has never failed ; capital rushes into London to earn the better hiring-price, and the desired adjustment comes automatically in due course.