4 JANUARY 1930, Page 38


On the whole, the monetary prospects for January are fairly good, though whether they will lead to an early reduction in the Bank Rate remains to be seen. Much, no doubt, will depend upon the course of the French Exchange and whether there is a revival in French demands for gold. During the early part of the month, however, further arrivals of gold from the Cape, Argentina, and Australia are expected, while with the return of Notes from home circulation after the Christmas holiday, the Bank Reserve should be showing a strong position by or before the end of the month. On the Continent also a downward tendency in money rates is noticeable, and during the past week it has been announced that the Bank of Belgium has reduced its rate of discount from 41 to 31 per cent.