As a consequence of firmer money rates and also, no doubt, .as a result of the continued stream of new capital creations; a less confident tone has characterized the stock markets, and high-class investment securities, in particular, have suffered some reaction. I cannot help thinking, however, that there has been a tendency to overdo the concern about the monetary outlook, and this is perhaps the more regrettable because it may have occasioned holders of the Government's five-year bonds to exercise the option given to them to call for repayment on February 1st of next year. If, as is currently reported, this option has been very largely exercised it means that the Treasury may once again have rather an embarrassing total of maturing indebtedness to contend with in the spring of next year. For my own part, I cannot help thinking that the More carefully money rates are maintained during the coming months, and until we have secured more gold from abroad, the greater likelihood there is of easier conditions in 1929, and that, after all, is the point with which holders of these bonds are chiefly concerned. However, it can be admitted that many if not most of them are held by the banks, who from the outset intended to regard them as one-year bonds.
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