Finance—Public & Private
Reparations and War Debts
IT is seldom that the Stock Markets experienced such a sharp revulsion of sentiment as that which has been shown during the past week as a consequence of President Hoover's" statement with regard to Repara- tions and War Debts. A week ago the Stock Markets were plunged in the deepest gloom, but at the moment of writing something like a boom is proceeding in all sections of the Stock Exchange, and inasmuch as there is often a tendency to go to _extremes, both as regards pessimism and optimism, , it . may' be useful to summarize briefly the causes responsible for the previous depression and those which have occasioned the present sensational recovery.
For a long time past it might be said that almost all the factors operating upon markets have been of an unfavourable character. At home confidence has been gravely disturbed by various stages and phases of Socialistic legislation, while during the last week or two influences of that character have been emphasized by the grave situation of the Unemployment Insurance Fund and the scant regard which appears to have been paid by the Government to the urgent recommendations contained in the interim Report of the Royal Com- mission on Unemployment.
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