FINANCIAL NOTES
FAVOURABLE FACTORS.
THERE have been two factors operating upon the Stock Markets during the past week. The first was the somewhat unexpected reduction last week in the New York Bank Rate. This is a most important point because, among other things, it means that our own Bank Rate now is 1/ per cent. above the level of New York while presumably it also signifies that the speculation in Wall Street has been reduced to more manage- able dimensions. Indeed, but for the situation in the coal industry, the market would be reckoning pretty confidently upon an early reduction in the Bank Rate, notwithstanding the fact _that we are ingathering gold- slowly. The other favourable factor, of course, is the Budget, to which I have already made full reference and, as a result of the combined effect of these influences, the tendency of high-class investment stocks during the week has been decidedly good, in spite of the comparative slackness of business. If only the coal crisis should be satisfactorily solved, there is .little .doubt that we should see considerable iniPrOvement_ in many departments of the Stock Exchange.
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