Financial Notes
LARGE GOLD EFFLUX.
MONETARY influences have again dominated the Stock Markets during the past week and British Funds and kindred securities have been adversely affected by the further heavy drain of gold abroad, chiefly to Germany. The stringency in Lombard Street at the end of the half-year was almost unprecedented in its severity and the borrowing at the Bank of England was very large. Moreover, even after the turn of the half-year there has been a renewal of gold exports and an unfavourable feature in the situation is the fact that, in spite of gold shipments abroad, the Foreign Exchanges continue to move adversely. Much of this is due to special causes such as German borrowing abroad and the fact that France has been taking pains to keep large balances in the United States in case she should be called upon to repay obligations to a total of about 280,000.000 maturing on August 1. Briefly, the matter turns upon whether the French Government ratifies during the next few weeks the Washington Debt Agreement, in which case there is a. provision enabling this August maturity to be deferred for a considerable period: Not unnaturally, the continued drain of gold from London has occasioned some talk as to the possibility of a further rise in the Bank Rate here to 61- per cent. and with that possibility looming ahead, it is, of course, not surprising that there should be little disposition to acquire gilt-edged securities.
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