CAUSE AND EFFECT.
This view was based on nothing more nor less than a consideration of probable political and monetary develop= ments. Following upon the adoption of the DaweS Report, the outlook for international politics at the end of .1924 was somewhat more hopeful, and, assuming the hopes to be justified, one or two developinents seemed likely -to follow. One of these was the probable growth in international confidence, and following upon it an increase Inl internatidnal -financial • and' commercial 'activities. These possibilities, however, in their turn made it unlikely that monetary conditions could become very much cheaper.. On the contrary, -the possibilities rather favoured increasing demands for capital from many parts of the world, and, inasmuch as many of them were likely to be of an investment character, competition with existing investment securities was threatened, in addition to which monetary conditions themselves suggested the unlikelihood of any important rise in the investment groups. On the other hand, there was much to suggest that in view of the unlikelihood of any immediate big trade revival here the better feeling might take the form of a stimulus to more speculative activities and even towards the end of last year there were not wanting indi- cations of a shifting of the attention of the. public front the gilt-edged to the more 'speculative departMehts.'•
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