THE Directors of the Bank of England on Thursday lowered their rate of discount to 2 per cent; but they are still as much out of the market as they were previously. The discount rate in the open market, in fact, has fallen to 3/4 per cent. To all intents and purposes, therefore, the step they have taken will leave these as much without business as before, though it is hardly likely, perhaps, that they will reduce the rate still farther. The accumulation of unemployed capital at home and abroad has become almost unprecedented. The Bank of England holds over 23 ¾ millions sterling of gold, the Bank of France holds over 43 1/2 millions, and the New York Associated Banks nearly 23 millions; in London, Paris, and New York, that is, the gold held amounts to about 93 3/4 millions sterling, and as trade continues depressed and speculation dormant, the accumulation is likely to go on. Under these circumstances, it is evident that the value of money must fall everywhere. For a while capitalists may consent to keep their money idle; but as soon as it is seen that peace is assured in Europe, there must be a revival in business. Already there are some faint signs of improvement, and these signs are likely to increase. The near approach of the holidays renders unlikely an outburst of activity just yet, and here at home, with a General Election to come off in the autumn, it is possible that the revival may be postponed till the end of the year; bat it is scarcely possible that so immense an accumulation of unemployed capital can continue very long. The liquidation of bad business has proceeded far enough to allow of new enterprises. At the same time, prices are so exceedingly low, and production has been so much restricted, that apart altogether from other reasons, one would rather look for improvement even from these causes alone.
Statist, June 2, 1885
England and America
Two Per Cent
Table of Contents
Miracles of healing - Christian Miracles or Healing
History of Russia: Christian Versus Barbarian
History of Japan: Early Christian Martyrs
The Jesus of History
The Assyrian Origin of Devil Worshippers
The Christ Of Dogma
The early history of Constantinople
