MONETARY CONSIDERATIONS.
During the past week there has been a material setback in the American exchange on London, which has reached the lowest point since our return to the Gold Standard at the end -of April. This, however, is certainly no matter for surprise: In the first place, it was always recognized that the greatest strain on the exchange would come in the early autumn and the likelihood ot a weakening in sterling has, of course, been increased by the great trade depression and our adverse trade balance. It is not• at' all improbable that we may lose a moderate amount of gold for New York, especially if the upward tendency in money rates in that City should continue. It may be doubted, however, whether any very great change in monetary conditions is probable, for in many respects the financial as distinct from the com- mercial position is a fairly strong one. Supplies of credits in the market are large ; our holding of gold is substantial ; while the good character of the European harvests makes it less likely that any drain of gold to the States would assume very serious proportions, especially as America is still busily engaged in making loans to Europe.
* * * *
Previous page
