The New York herald., 1921-06-20

Special Gable to THE NEW YORK HERALp.
Copyright, 1921, by THE New YoEk HmAl.D.
n New York Herald Bureau,
London, June 10.
The London financial market was
strangely analogous to that of New York
last week. with the exception that the
Bank of England did not follow the ex-
ample of the Federal Reserve Bank In
reducing the discount rate. Otherwise
industrials, showed severe depression
with dulness of business on the ex-
change following dullness in the COM
modify markets, due to the coal strike
and the threatened stoppage in the tex
tile and engineering trades.
Promise Of settlement in the textile
and engineering disputes gave some
buoyancy and some activity to the mar
ket, particularly In the gilt edged group
toward the end Of the week, but Satur-
days developments, with the miners CALI
ing for general strike gave promise
of continued uncertainty Monday.
1t is not believed in financial circles
that the miners will succeed in their
call. In fact, those bankers and brokers
who could be induced to talk business,
with the Ascot races and the interna-
tional polo matches occupying the serious
side of their minds this week, say they
believe the call for general strike
marks the beginning Of the end of Great
Britain's industrial troubles. They say
they believe the mine strike is cracking
and its finish will be assured when the
leaders find how few other trade union
lists agree with their position.
The violent fluctuations in Wall
Street were reflected here. principally
in the movements in Japanese secui-
ties. Otherwise business was so dull
that the jolt in Wall Street hardly af-
fected 1t.
The assertion Of United States Sena-
tor Phelan of California that salt water
was again invading a serious portion
Of the Mexican oil fields had the effect
Of dampening enthusiasm for oil shares
despite the phenomenal annual reports Of
the Shell. Mexican Eagles and Royal
Dutch groups during the week.
Senator Phelan's statement is now ac-
cepted as poor authority. however, and
attention is being directed to the fact
that neither the Bureau OF Mines nor
the Geological Survey confirms It, while
growing attention is turned to the divi-
dend Of the Royal Dutch, which Is
equivalent to 60 per cent. of last years
issues and nearly doubling the Shell
profits during the year.
AS might be expected. in view Of the
strike threats. little or nothing was done
in the Industrial market, that section
going begging. 1t Is known that impor-
tant new industrial issues were held up
because OF that dulness.
Boost for British Rails.
There was a growing interest In Brit
fish rails on account Of two favorable
decisions during the week regarding de-
naturalization of the railways. Scottish
railroads will now be permitted to group
with their natural partners. the British
railways. and an important precedent
was made in settling the claims Of the
North British railway against the Gov
ernment.
The currency and credit situation was
much improved. For the week ended
Wednesday the currency notes were re-
duced by f2,400.000, while the Bank OF
Englands circulation was contracted by
$500, 900. Despite these contractions.
which were largely due to the reduction
In the demand for currency for the pay
ment Of wages in the present depression.
credit showed Improvement and most OF
the prophets asserted that the bank rate
would be reduced as soon as the coal
strike was settled. and that there was
chance Of business resuming. with q
lower wage scale to meet.
Commercial credits were easier. The
Excheuuers determination against .ur-
ther Governmental expenditures also
helped toward an optimistic view OF the
fufura