MONEY MARKET.

Rangitikei Advocate and Manawatu Argus, Volume XLV, Issue 12102, 12 July 1920, Page 5

MONEY MARKET.

AN IMPROVED OUTLOOK,

United Press Association.— By Elec trie Telegraph—Copyright.

LONDON, July 10

The turn of half the year saw a usual abundance of funds in the money-market. The supply at the week-end, after repayments to tne Bank- of England and the purchases of new Treasury bills, remained sufficient to keep the rates for short loans lower than at the end of June, though there is no perceptible improvement in the longer-dated advances. Lt re market is less apprehensive regarding the future than a fortnight ago, when it feared an eight per cent, bank rate, owing to the Fiduciary issue of currency notes approaching the maximum limit of increase in bank rate. This is now believed 'unlikely, excepting for abnormal developments, the doubtful factor being the monetary situation in New York. A re <l u ® s * generally has been made that the Government should declare its tion regarding the so-called dear money policy, in order to inspire the business c«mmunity with great confidence The foreign exchanges continue to be dominated by the Spa Conference, especially the French, Belgian, and Italian. ■ The half-yearly dividends of ,the leading banks arc equal to January, and it is generally understood that the o-ross earnings probably will establish new records, but growing expenses depreciation of investments . and ti slackening of industrial demands is considered to render a cautious policy ne The a stock Exchange shows more cheerfulness, activity and steadiness, though there is no groat recovery with certain exceptions, mostly m sound investment shares, but the mai - ket unquestionably is more confident dealers believing that a better basis has been reached on the foreign o look, and a hope that concessions vill yet be made in the excess Profits * which has also contributed to better conditions. At the same time, the - vector apparently considers that ah normal, industrial profits have reached their limit, consequently awakening S nterest in gilt-eteed Mocks. Sh.pShores show an improved ton£ of complete decmitrbq but the drop in foreign freights is a disturbing factor.