BRITISH MONEY MARKET

Evening Post, Volume CIV, Issue 8, 10 July 1922, Page 7

BRITISH MONEY MARKET

INFLUENCE OF BERLIN CRISIS.

(Received July 10, 9 a.m.)

LONDON, Bth July. The present state of the Berlin exchange has virtually brought about a, standstill of any attempts by Germany to meet cash payments, accounts, and reparations, and is affecting hei similarly regarding the external payments which must be made for raw materials.

An encouraging feature in the exchange position lies in the fact that New York values have strengthened during the week, probably due to Tenewed expectation of developments regarding the British loan in America. In this regard the city evinced the greatest interest in the withdrawal of £500,000 in gold from the Bank of England.

A similar decline occurred in the holding of q;old by the Currency Department against the. issue of currency notes. Thus £1,000,000 has been withdrawn, and the money market concludes that this is beinff done for shipment to the United States as payment of interest on the loan, the first instalment of which is due in October.

The Spectator points ont that among the influences which have produced the recent improvement in eilt-edged securities, insufficient attention was paid to the national accounts, which may be regarded as encouraging, owing to both thf unexpectedly large revenue and the shrinkage in expenditure.