29 JUNE 1929, Page 36

LOOKING AHEAD. ` it would be an easy matter to

indulge in speculations as to the course of political developments during the next six months, and, of course, the first session of a new Government cannot fail to be other than interesting. As a matter of fact, however, I think that the question of domestic politics in its relation to stock markets movements only becomes of prime importance in the immediate future, in so far as it is related to the much greater factor represented by the international monetary situation. It looks as though during the next six months high money rates it some of the foreign centres would • in themselves constitute an attraction for 3ritish capital, and, therefore, it is of importance that there should be no other kind of influence tending to prompt exports of capital from this country. It is not merely that, owing to high money rates in New York and Berlin, holders of capital can obtain a higher rate of interest on what is known as short term loans, at both centres, hut sound long dated securities' can be obtained both in the United States and in Germany on terms giving a higher interest yield than is obtainable on most of our gilt-edged securities at home. Which, of course, in its turn suggests the question whether our high-class investment stocks, which already show a moderate fall'since the end of last year, may not have to fall further, unless, indeed, there should be a material decline in money rates abroad, of which at present, however, there are few signs.