FINANCIAL NOTES
IMPROVED MONETARY OUTLOOK.
' There is no feature of the financial situation which is more striking than the great change which has come over the monetary situation. Earlier in the year, when the question of the return to the Gold Standard was still under considera- tion, there were some who believed that our return to gold would quickly bring up the exchanges to the level of London, but the majority, and especially those who opposed the readoption of the Gold Standard, urged that inasmuch as the exchanges were still in a very unreliable position a big gold drain and a high Bank rate might be expected. It is not quite three months since we returned to gold, and, including the large arrival of sovereigns from South Africa on Monday, the -Bank has gained on balance just over £7,000,000 in gold. As a consequence, monetary conditions ih Lombard Street have become extremely easy and, so far from the market discussing the chances of a higher Bank rate, some are wondering whether there may not be a reduc- tion I
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