Review of Business Month Conditions for the of July By courtesy of Wang & Ca, outstanding bor-During the month of July, the
tive attack upon Jehol by Japan and the statement issued by' the Finance Minister, Mx. T, V. Soong, announcing a deficit of Tls. 3,700,- 000 sustained by* the customs revenues in relation to charges upon for the service of loan obliga-Considering these two very important facts, the appended table cannot be regarded as the sum total of the effects upon the bond ket. These facts produced con: quences which are not mirrored in the table because the figures closed three days before.
Up to July 26, the last day on which July contracts were negotiate the event which most seriously affected Government bond prices was the Jehol incident which oct red in the third week. Up to that. time the market for a fortnight had been making consistent advances, the first week showing vances between.70 and 1.90, the second with further fractional gains ranging from.10 to.90 of a int, For two days' following the ported invasion of Jehol, the market slumped maximum of 1.80 and. 2.40 points, but regained about half of these losses during the fe sive adventure, less clear that reports from. the north were not reassuring, the market again weakened wweek's final session, and showed a Uecline that amounted to as much fas. 280, thus practically nullifying the gains of) the previous "two weeks.
These losses were added to on the opening of the final week's busi ness. "A decline as much as 1.80, points was recorded on Monday as a wi Fesult of the reports that Japanese Iand and air forces were manceuvering along the borders of Jehol, Although results on the following day showed slight fractional recoveries these. were not effected by arum: provement of confidence so much as by the covering operation of short traders who were taking profits. However, that was the last day for Suly: transactions, On Wednesday, two days before settlement, Mr, Soong's statement was, published." 'This' brought the market down an average of a halt point. On the next day an equal average decline was recorded. Following the monthly settlement which was made on Friday, a report in the press stated that the Japanese legation in Peking was evasive in a press interview, but stated that Japan was watching the movement of Chang Hsueh-liang's troops. The market interpretation of this report was that hostilities in Jehol again were imminent, Prices Geclined an average of over 1.50 points. This two and a half point downward movement is not included Jong, to the "open ste but are nevertheless part of the July record of Transactions for the month totaled a little over $73,500,000 as compared with the $93,000,000 for June, The conduct of the market was such as to suit traders, and for that rea. son the decline in the volume of business is somewhat disappointing, 'The record of July follows: euigate Wan' hak coy' Some Fie Zea 27.00 27.50 2080
Text read from the printed page and cleaned; old type leaves the occasional error.