3 SEPTEMBER 1937, Page 36

FINANCE

STATE CONTROL By common consent, there is considerable trade activity both in this country and in the United States, while in both countries, too, there has been a considerable rise in public securities, the advance in the United States perhaps extend- ing over about two years, while here the rise covers a period of about four years. And yet the fact remains that in both countries there is evidence of a lack of confidence both in financial and business circles, and both in New York and London there has been latterly a considerable setback in market values of securities.

And if we were to search for an explanation of this lack of confidence and the consequent setback in securities, we should doubtless be told that the underlying factor was the unsettled political conditions in so many parts of the world. That, of course, is true, even though in this country, and certainly in the United States, there is no actual apprehension of being directly concerned in an international conflict. * * *