13 JULY 1929, Page 28

Financial Notes

BANKING AND DISCOUNT DIVIDENDS.

As anticipated,_ interim banking and discount dividends for the past half year have been in all cases maintained at the level of a year ago. So far as the banks are concerned, I should think it is probable that profit earning power has

been rather greater, but the Discount Market has probably had a more difficult time to face, for the Discount Market is believed to deal pretty freely in short-term Treasury Bonds, and movements in them during the past six months have not been favourable to the market. On the other hand, thanks to the fact that the Bank Rate has been so completely effective,- there has been a better margin for the Discount Market between the Loan and Bill rate.