The Bank of England raises its discount rate as financial disruption in the United States effects Europe

The Bank of England, Britain's central bank, raised the discount rate, or the rate of interest it charged smaller banks for loans of reserves from six to seven percent. The Bank cited the large recent transfers of gold to the United States, as well as the precarious position of the Bank of France which was under pressure from the current American financial panic over the political situation there.  Stress on the Bank was not helped by the £3,000,000 rush of British investors to take advantage of falling American stock prices.  (By John Osborne)