FINANCIAL.

Hokitika Guardian, 12 July 1920, Page 2

FINANCIAL.

AUSTItALIAN N.Z JAB EE- ASSOCIATION J (Received this day at 8 a.m.) LONDON, July 10." The turn of the half year saw the usual abundance of funds in the money market supply at the week-end. After repayments to the Bank of England and purchases of new Treasury Bills there remained sufficient to keep the races tor short lo;yis lower thin at the eiuf of June, though there is no perceptible improvement in longer dated advances. The market is less apprehensive regarding the future than a fortnight ago, when it was feared there would be an eight per cent bank rate, owing to the Fiduciary issue of currency notes approaching the maximum limit. Ail increase in the bank rate is now believed to be unlikely, excepting for abnormal developments, a doubt ml factor being the monetary situation in New York. The request is generally made that the Government should declare its intention regarding the so-called dear money policy, in order to inspire the business community with greater confidence. Foreign exchanges continue to be dominated by the Spa Conference, especially French, Belgian and Italian. Halfyearly dividends of leading banks - equal January. If is generally understood the gross earnings will probably establish new records, but growing expenses and depreciation of investments and slackening of industrial demands are considered to render a cautious policy necessary. The Stock Exchange show more cheerfulness, steadiness, though there is no great recovery, with certain exceptions, mostly some investment shares, but the market unquestionably is more confident, dealers believing a better basis lias been reached. The foreign on llook and hope that concessions will yet be made in excess profits duty, has also contributed to better conditions. At the same time investors apparently consider the abnormal industrial profits has reached the limit, consequently there is an awakening interest in gilt-edged stocks. Shipping shares show an improved tone on the prospect of complete de-control, but the drop in foreign freights is a disturbing factor.