MONEY MARKET

Hawera Star, Volume XLVII, 4 June 1928, Page 5

MONEY MARKET

EASIER CONDITIONS.

NO REDUCTION IN .BANK RATE,

BUSY TIME IN MAY. .UNITED PRESS ASSOCIATION-BY ELECTRIC TELEGRAPH—COPYRIGHT.). (AUSTRALIAN PRESS ASSOCIATION.) Received 10.15 a.in. to-day. LONDON, June 2. j Although business on the Stock Exchange has been on a small scale during tne past fortnight, as is usually the case in the Whitsuntide holiday period, the tone throughout has been linn. Gilt-edges have • shown a pronounced strength, these benefiting by ease of monetary conditions and the shipment of four millions of gold to London from the United States and the payment, of £50,000,000 in interest on rive per cent, war loan, of which some portion is expected to be used for reinvestment. In this state of affairs there has naturally been , some talk of a. possible reduction in the bank rate, but the best-informed people do not expect a reduction, as they are doubtful whether four per cent, could be maintained over September. Under these favourable monetary conditions, numerous new capital flotations are expected and one already appears in the shape of a Tanganyka •If per,.cent, .loan at 96J; guaranteed by the* British Government. May. was a very busy month as regards capital ‘ issued. Flotations, according to Midland Bank’s statistics, exceeding £39,■OOO,OOO. which is easily a record, for May. The total for the twelve months amounted to £336,229,000, the highest A since 1920 when the amount was £387,738,000. The figures exclude all direct borrowings by British Government.