MONEY MARKET.

Taranaki Daily News, 12 July 1920, Page 5

MONEY MARKET.

A BRIGHTER OUTLOOK. BRITISH CONDITIONS REVIEWED. By Telegraph.—Press Asm.—Copyrltfi^ Received Julft 11, US p.m. t, London, July 10. The turn of the half year saw the usual abundance of funds in the money market, and the supply at the week-end, after repayments ,to the Bank of England , and purchases of new Treasury bills, remained sufficient to keep the 'rate* for shert loans lower than at the 'end of June, though there was no pereeptible improvement in longer dated advances. The market is less apprehensive regarding the future than a fortnight ago, when it feared the eight per cent, bank rate, owing to the fiduciary issue of ciir- ' rency notes approaching the maximum Jjnrit, An increase in the bank rate.ii now believed to be unlikely,. ex»pofg abnormal developments, a doubtful fac- , tor being the monetary situation in New ; York. The request is generally made that the Government Bhould deeUre\H* intention regarding the so-called defr money policy in order to inspire the. business community with great confidence. Foreign exchanges continue to be dominated by the Spa Conference, especially' th£ French, Belgian and Italian. Tte half-yearly dividends of the leading banks equal January. It is generally I understood the gross earnings will probably establish new records, but tke growing expenses, depreciation, investments, and the slackening of industriee demands will, it is considered, render a cautious policy necessary. The Sto«k Exchange shows more cheerfulness, activity, and steadiness, though there is $> great recovery, with certain exceptions) mostly sound investment shares, but tjte -. market is unquestionably more confident. -"'' Dealers believe that a better basis has been reached in the foreign outlook, a*d their 1 'hope that concessions Will yet be made in the excess profits duty has also contributed to better conditions. At to* . same time the investor apparently considers that abnormal industrial profits have reached their limit, and consequently there is awakening interest in gilt- ; ; edged stocks. Shipping shares show an ? improved tone on the prospect of com* plete decontrol, but a drop in foreign freights is a disturbing factor.—-Aus *, N.Z. Cable Assn. ■ '.\