FINANCIAL NOTES.
In one direction,, at all events, there has been a real slump during the past week, namely, in what were known as " election majorities." I think there must have been few occasions on which the Stock Exchange has been proved to be more hopelessly wrong in its estimates than in the case of the present election results. With remark- able steadiness the price of Conservative majorities was maintained in the House during the election at quotations genetally ranging. from 80 to 40, and unfortunately it is now known that dealings were on a very large scale and the " differences " which have to be met this week are quite extraordinarily large. Of course, the matter really resolves itself into little more or less than betting trans- actions, yet not only are the aggregate losses large, but in many individual cases those who bought failed to recognise the precise character of the operation, so that they have become liable for an infinitely larger amount than they had anticipated, even allowing for the actual difference between election results and those which had been predicted.
* * * Although we know that the financial problems of a country cannot be cured by the mere appointment of commissions or committees of experts, has Brazilian effect h certainly been produced so far upon ian credit and exchange by the recent announcement that a really influential deputation of practical banking arid exchange experts has accepted a friendly invitation by the Brazilian Government to visit that country. The richness of the natural resources of Brazil is beyond question, but the depreciation in the milreis, which is probably not entirely unconnected with what would be described here as artificial, if not inflationary, measures, has done much to embarrass the task of making sterling remittances, and has interfered with the free development of Brazil's resources. The standing of. the deputation is such as to afford in itself some testimony of Brazil's desire to deal with the
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