LONDON MONEY MARKET
(By PENLOO.) The London money market does not show any signs of easing; on the contrary, there is a tightness which may easily result in rates advancing. At the close of 1925 the amount of gold held by the Bank of England was £144,556,000 and last week the amount stood at £142,157,000, a decrease of £2,399,000, and “other deposits.” that is, deposits apart from Government deposits, fell from £100,682,000 to £109,148,000, while short loans were quoted at 4 per cent, or 1 per cent below bank rate. Much will depend on the volume of foreign borrowing and the prospective demands on the gold reserve, whethe rthe bank rate is advanced or remains at 5 percent. Britain has very little money to lend, particularly at low rates of interest, and this was shown by the failure of the Queensland and South Australian State loans. It is interesting to note that sterling exchange on New York has improved since the beginning of the year, arid at 4.86 13-16 dollars to the £ is a shade above the mint part of exchange.
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Bibliographic details
Northern Advocate, 5 February 1926, Page 6
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181LONDON MONEY MARKET Northern Advocate, 5 February 1926, Page 6
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