THE OUTLOOK.
At the same time I am bound to add that this view is based upon expectations of a continuance of cheap money, and in that connexion arises the important consideration of whether the sudden boom which has taken place on the other side of the Atlantic, and the moderate rally which has taken place in prices of leading commodities, mark a turn in the trade and monetary situation. Frankly, I am afraid that it does not so far as any important early recovery in trade activity is concerned, though if specu- lation in Wall Street should become unwieldy in the near future that event in itself would present a menace not altogether to be disregarded by the money market here. For the moment, it is really quite impossible to determine whether the more cheerful tone noticeable on the other side of the Atlantic will be the precursor of more healthy conditions in trade, but the possibility has to be borne in mind. If, therefore, I were to sum up the position in a few sentences I should be inclined to say that, whereas a few weeks ago everyone seemed to be confident of the abnormal ease in money continuing for an almost indefinite period, the events of the past fortnight have, at all events, suggested the possibility of some change a little later on, especially if the forthcoming World Economic Conference should lead to a greater amount of international co-operation with the Object Of stimulating international trade. So far, however, as the present relapse in gilt-edged stocks is concerned investors should understand that it is largely the result of realizations by speculators, who had bought in advance of the conversion operation and who are now busily engaged taking profits.
(Continued on page 220.)
Finance—Public and Private
(Continued from page 218.) Moreover, their sales have probably had all the greater effect coming in the holiday season when the markets are thinly attended and the volume of business is restricted. On any further important reaction—if it occurs—I think that long-dated Government securities should be bought.
ARTHUR W. KIDDY.
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