The Bank of England on Thursday raised its rate to
3 per cent. There is a demand for gold to be sent to Australia, where the end of the banking trouble is not yet reached, and where one Government (Sydney) has made local bank-notes legal tender for a time ; but the directors have also been. influenced by the American position. The Washington Treasury is getting close to a deficiency of gold ; and the President is said to be determined not to borrow till the public see the result—a silver currency—which the silver purchases must produce. In the event of a panic, however, he would issue a gold loan; and as this would draw gold instantly both from England and the Continent, bankers think it well to begin preparations. The President's policy is bold, and as the consequences, if they are bad, will fall on. foreigners, it will probably be applauded at first. The Union can of course borrow any amount it likes at short notice ; but a disturbance in the world's currency is pretty sure not to remain for long unfelt in New York.
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