Financial Notes
MARKETS STILL CHEERFUL.
MOST of the factors operating upon the Stock Markets during the past week have been of a satisfactory character, and among them—so far, at all events, as the first effect is con- cerned—must be included the return of the Saar to Germany. Not unnaturally, the first effect has been to occasion a con- siderable rise in German Bonds, for the acquisition of the Saar adds materially to the strength of Germany's economic position. All the same, the markets rather incline to regard the event as furnishing a searching test of the Hitler policy in the immediate future. British Government securities, after a further display of strength, with the establishment of fresh record prices in several British Government stocks, have reacted a little ; the chief influences have been the talk of stabilization of currencies and the possibility of a General Election in this country before the end of the year. Both events are probably farther off than the market anticipates, but the large speculative buying of some securities has made the market sensitive to selling orders. Home Railways, too, have been adversely affected by fears of an increase in working expenses, but the market for industrial shares has
shown considerable strength. * * * *
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