LONDON EXCHANGE.

Waikato Times, Volume 107, Issue 18047, 16 June 1930, Page 7

LONDON EXCHANGE.

HOPES NOT REALISED.

REDUCTION OF BANK RATE,

STRINGENT CONDITIONS EXPECTED

United Press Assn.—Elec. Tol. Copyright,

LONDON, June 14

The high hopes entertained a fortnight ago of an early reduction of the bank rate to 24 per cent., have been dashed to the ground by’ adverse movements on foreign exchanges, and heavy demands for gold from foreign countries, especially France. It now appears likely that stringent conditions will prevail in the money market all , this month, and this expectation has' caused renewed dullness on the Stock Exchange, especially in the giltedged market. The depression spread t,o other sections. The slump in Wall Street last week-end and the renewed weakness there have caused serious depression in industrial stocks, which has been accentuated by the poor results shown in the reports of many trading companies. Among those that have declared lower dividends are several connected with the Australian trade. For instance, Lovell and Christmas, who are large importers of Australian and New Zealand hutter, state that “owing to a decrease in profits resulting from the fall in the value of commodities dealt in," they will not pay a final dividend on the ordinary shares, the only distribution being an interim dividend of 2 per cent, paid in January. This company has been paying 10 per cent, dividend for some years past., The only satisfactory event of the week has been the success of the German reparation loan.