It is quite possible that the long cycle of excessively
cheap money through which we have been passing is over. America is withdrawing gold from London in rather large sums, the banks there being determined to support the Treasury in making its payments in gold, and there is a demand also for Russia where the Finance Minister desires to establish a gold standard. The Bank of England apprehends further demands, and on Thursday, therefore, raised its rate, which has stood at 2 per cent. ever since February 22nd, 1894, to 2i per cent. All the best securities sunk a little, Consols in particular receding 1, and a general feeling was expressed on 'Change that the rise of secure investments which has been so steady for months past would at last receive a check. The change is not to be regretted, for a moderate decline in prices would diminish the severity of the fall and the consequent panic which would attend any European disturbance. Such dis- turbance, with the East visibly dying of gangrene, is more than merely possible.
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