MONEY MARKET

Evening Post, Volume CIX, Issue 139, 16 June 1930, Page 12

MONEY MARKET

FOREIGN EXCHANGES

ADVERSE TO LONDON

Putted Prns Association—Hy ' CJecirk Tele- . graph—Copyright. . . ■.'■■■; LONDON, . 1-ith June. It lion" appeal's likely tliat stringent conditions -will prevail in the money market •11 this mouth, and this expectation lias caused renewed dullness on the Stock Exchange, especially/in gilt-edged securities. The market depression haa'spread to other sections. Tin; slump i» Wall street last ■week-end, and the renewed weakness tliciv, I hare caused a .serious depression in industrial stocks, and these influences have becu accentuated'by the poor results shown in the reports of many trading companies. The high hopes entertained a fortnight ago of an early reduction of the bank rate to IV2 per cent, have been dashed to the ground by adverse movements on foreign exchanges and heavy demands for gold from foreign countries, especially France. Among those declaring lower dividends are several connected with Australian trade. For instance, Lovell and Christmas, ■who are large importers of Australian and New Zealand butter, state that "owing to a decrease in. profits resulting from the fall in the value of the commodities dealt in," they are not paying a final dividend on ordinary shares, the only distribution being the interim 2 per cent, paid in January. This company has been paying a JO per cent, dividend for some years past. The only satisfactory event of the -week has been the success of the German Government Reparations Loan of roughly sixty'millions sterling, both here and on the Continent. Our share of this amounted to twenty millions in 5% per cent, bonds at 80. The lists opened yesterday morning and closed three hours later, the amount having been heavily over-suli-ncribed. The French, Swedish, and Italian portions of the loan also were over-sub-scribed. ■

The movements in the metallic holdings of the Bank of England during the past-two and a-half months will be seen 5n the returns hereiinder:— .Coin and , bullion. Bank rate. £ Pc 3rd April ...... 157,725,000 V/z 10th April 160.781,000 3% 17th April 160,788,000 3% 24th April 163.843,000 3V 2 Ist May 164.283,000 3 Stir May 16-1.502.000 3 15th May 163,347,000 3 22nd May ....... 158,443,000 3 29th May 158.116,000 3 sth June ...... 356,879,000 3 12th June 157,180,000 3 On 13th June, 1929, the holding was returned at £108,502,391.