Financial Notes
A FURTHER REACTION.
As compared with a week ago, Most securities on the Stock Exchange have suffered a further reaction, and although at the time of writing prices in some directions, and notably in high- class investment stocks, have rallied, the general condition of markets can only be described as most unsettled, with a commendable disposition on the part of dealers to restrict speculative cominitments pending a clearer outlook in the New York money market: -For it cannot be too clearly understood that it is the gamble in Wall Street, with its effect in producing dearer money rates in New York, which is mainly responsible
(Continued on page ix.) for the present unsettlement in_znarkets. I dealt with the general situation last week, in my article on Bank Rate, so fully that I do not propose to go again at all deeply into the matter. Stated in a few_ words, it may be said that, so far as can be gathered from the New York cables, the Federal Reserve banking authorities on the other side of the Atlantic are anxious to restrain, if not actually to break, the speculative movement in Wall Street, having regard to its effect on the general monetary situation, but -their efforts are being rather successfully withstood owing to the fact that those engineering the upward movement have colossal liquid resources of their own more or less outside the control of the banks. If, therefore, the speculator should gain the day in the struggle, it looks as though still higher interest rates may have to be imposed in New York; in which case there is the fear that such high rates may react upon Europe and occasion an increase of stringency here, which would be quite unnecessary but for the demands upon loanable capital made by Wall Street ;peculators.
* * * *
Previous page
