Financial Notes
MONETARY UNCERTAINTIES.
In considering the monetary situation and Bank rate pws- fleets, it is evidently necessary at the present moment to takc carefully into account international, as well as local, monetary conditions. The persistent weakness of the Ameriean Exchange, the rapid fluctuations of the German Exchange, to say nothing of the movements in the Italian lira, are all suggestive of influences which have their origin in conditions abroad, rather than at home, though they have to be taken into account by any great monetary and gold centre. Easier money in Germany seems to have been more productive of an orgy speculation on the Berlin Bourse than of a revival in industry and the recent fall in the exchange value of the Reiclismari, followed by an equally sharp rally, was suggestive first of possible gold withdrawals from Germany, and later of remedial measures applied, which produced a sharp rally in the exchange. A severe slump on the Bourse was caused by a sharp contract ion of credit by the German Banks, obviously acting in accordance with the wishes of the Reichsbank, and while it is believed tint Dr. Schacht, the President of the Reichsbank, had given private warnings to the banks some time ago, the ordinary public seems to have had scant warning, with the result that there have been severe losses. To some extent the weakne,i of the German Bourse has even reacted on markets here during the past week.
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