BANK SHARES DROP

Hokitika Guardian, 13 July 1931, Page 6

BANK SHARES DROP

(Australian Press Association.)

SYDNEY, July 12

As the result of the New South Wales political crisis and heavy increase in Federal taxation, business on the Stock Exchanges is practically at a standstill. Bank shares are easier. The Union Bank's reduced dividend gave the market a shock. Moreover, rather a marked recession has occurred in the Bank of Australasia shares. Sales were recorded during the week down to £ll 15s, and New Zealand selling orders are now on the Sydney market.

Commonwealth bond values are ir ; regulaf.

LONDON MONEY MARKET

GOLD SUPPLY GOES UP

LONDON. July 11

.Regarding the commercial situation, the confident hopes* that were entertained a. fortnight ago of an early reduction in the bank rate hav« not been fulfilled, for, although the French Chamber of Deputies has agreed to President Hoovers moratorium proposal, Germany’s financial troubles have become so acute that the Bank of ’England has had no option but to act cautiously, and to postpone the much-desired reduction until the situation in Germany improves. -

The Bank of England’s position is extraordinarily strong, its gold reserve being now nearly. 166 millions, and there are further sums in sigh’ which are likely to raise it to the high record total of 175 millions before the autumn.

The failure to reduce the bank rate has had a depressing effect on the Stock Exchange, and has counteracted the good impression caused by the mo fa to r i urn ar ran gem ent.

The depression has been accentuated by the German financial crisis, and also by alarmist reports that it might seriously affect some of the London and Continental finance houses.

.Consequently gilf-edged securities here have maintained their position v on the continued progress made towards financial reconstruction, as “The Statist” puts it.

Dominions’ stocks generally showed a firm market. .

GERM NAY’S LOSS OF CAPITAL

BERLIN, July 10

To-day was described as another “Black Friday’.’ for Germany. Dr Luther spent the day in a series of conferences in Paris, but it is understood that both there and at London he came away empty-handed from his search for eighty millions sterling credits lor the Reichsbank.

. '’■'THL r outflow—-of- ■ foreign exchange continues at the- rate ol two to three millions daily.

UNION BANK

LONDON, July 11

The Union Bank of Australia report for the past year shows the available profits as £370,011, including £76,992 brought in. The sum of £1,500,000 from the Reserve Fund has been allocated to a special reserve fund against ' the depreciation lof and Non Zealand currencies. The sum . brought forward is £90,100.