FINANCIAL NOTES.
The influences affecting the Stock Markets during the week have been of a conflicting nature. Having recovered from the effect of the resignation of Mr. Bonar Law—which was regretted nowhere more than in the City—markets have been steadied by the successful re-formation of the Cabinet by Mr. Baldwin, and not least by the prospective inclusion of Mr. McKenna. A further circumstance which has tended to strengthen the Investment Markets has been the expectation of the reinvestment of some portion of the £50,000,000 in War Loan dividends dis:. bursed on June 1st, while the good response given to new isx.zes of capital has been a helpful factor. On the other band, the developments in the Ruhr crisis, and the further slump in the mark, have occasioned considerable anxiety in financial circles, and a careful consideration of market conditions at the moment suggests that some part of the strength of investment stocks must be attributed to a recrudescence of uneasiness with regard to international politics. This impression is rather strength- ened by the fact that in some other directions, and notably in English RUilways, some dulness has been evi- dent, due in part to uncertainty as to the effect upon railway earnings of reduced freight charges, but also in part to indications of the slight revival in trade having received a moderate check.
I referred last week to the likelihood of Americap banking interests being concerned in the Austrian Loan, and the definite announcement is now made that a banking group, headed by Messrs. Morgans, will be handling the equivalent of about five millions. The total Loan—the full particulars of which' seem likely to be available a iconlimed on page 9334 week hence—will be for about f29,000,000, distributed over various centres, and it seems to 'be generally under.: stood that there will be a " flat " interest yield on the bolids of about 7f per cent., with a slightly higher yield when redemption is taken into account. The 'extent to which the Loan is secured by guarantees by various Powers is already a matter of common knowledge, but I fancy that when the full prospectus is carefully considered there will be a disposition to lay almost equal stress upon the actual revenues hypothecated by Austria. Even beforq the Austrian Loan makes its appearance I expect one or two other interesting Loans to be issued, and at the moment of writing the prospectus has appeared of a Port of Buenos Aires Loan for £2,500,000, guaranteed by the Argentine Government and sponsored guaranteed Messrs.
Baring Brothers.
* - * Not the least interesting point in the address of Sir Edward Hambro at the recent meeting of the share- holders of Hambros Bank, Limited, was his reassuring remarks concerning the banking difficulties in Denmark and Norway, to which I have previously referred in these notes. There is probably no banker in London who can speak with the same authority concerning financial affairs in Scandinavia as Sir Edward Hambro, and it is, therefore, satisfactory to note that in referring to the recent banking difficulties he was able to express the view that they had been met wisely, and with success, and that there were grounds for expecting " a steady improvement in the position with a return to the normal
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