GOLD WITHDRAWALS.

Waikato Times, Volume 105, Issue 17751, 1 July 1929, Page 7

GOLD WITHDRAWALS.

AN ANXIOUS WEEK.

ON LONDON STOCK EXCHANGE. A WELCOME CHANGE. (By Telegraph—Press Assn.—Copyright.) (Australian Press Association).

(Received July 1, 9.30 a.m.) LONDON, June 29

The Commercial Summary says that the money market and Stock Exchange have gone through an anxious week owing to the heavy gold withdrawals to Germany and the subsequent fear that the bank rate might be raised, and until yesterday depression reigned on the stock markets, most of all in giltedged securities, but yesterday came as a welcome change. The recovery of the sterling rate on New York to 4 dollars 85 cents, and the improvement of the German rate had a rapid effect on the gilt-edged section. Operators who had sold stock became anxious to cover, and in many cases prices recovered practically to the extent of (he previous decline. The market was also helped by the prospect of easier money after the turn of the half-year.

Discussing bank rate possibilities, the Investors' Chronicle writes that large amounts of gold are on the way here from South Africa and Argentina, and the Bank of England may be able to replenish its stock of gold in the near future. Relatively the bank is in a very strong position, and gold stocks can even be depleted by a further large sum before causing real anxiety. The money market men seem lo he inclined to think that a further rise in the hank rate will he avoided unless conditions continue to be adverse at the turn of the half-year, but the position needs careful watching, as at this period of the year sterling exchange is usually tending to improve, and we are approaching the autumn when an adverse movement is generally expected.