MONETARY SITUATION.
REMARKABLE IMPROVEMENT. BY CABLE—PRESu ASSOCIATION—COPYRIGHT LONDON, July 20. The Morning Post’s financial editor says the outstanding fact in the money market is the remarkable change in the monetary situation and the improved tone of the market for highclass investments, due to the unexpectedly extensive and persistent character of the gold influx. This has added so much to bank reserves and floating credits in the market that it is impossible to maintain the 5 per cent bank rate. Naturally the market for gilt-edged stocks was sympathetically affected, and especially the knowledge that large colonial borrowings were being shared with the United States had a stimulating influence. The English portion of the Australian loan appears to he rather cheaper than the American market. While glad to be relieved of the task of absorbing the full amount, London is glad that the Australian Government is not turning to New York instead of. London and that the entire operations are in the hands of the firm responsible for earlier Australian flotations. There is every likelihood of more gold arriving in the near future, which is a favourable point for the gilt-edged market.
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Hawera Star, Volume XLV, 21 July 1925, Page 5
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190MONETARY SITUATION. Hawera Star, Volume XLV, 21 July 1925, Page 5
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