MONETARY UNCERTAINTIES.
Moreover, while generally the financial outlook is by. no means unfavourable, there is a good, deal of uncertainty with regard to monetary developments. In some' respects the position here is unusually favourable, the Bank of England having gained something like £25,000,000 in the Reserve within a twelvemonth, but, on the other hand, the speculative activity in Wall Street continues to be such that the possibility of even higher money rates in New York, with their reflex action here, have to be borne in mind. Not only so, but an unexpected development of recent months has been the sudden fall in the Berlin exchange on London and a big demand on the part of Germany for gold. This fall in the exchange and the consequent pciwer to take gold has probably not been due to natural causes, such as a favourable trade balance, but to heavy dealings abroad by Germany and a rise in Berlin money market rates which has attracted short
loans from many quarters. Whatever the cause, however, its effect has been to add yet another to the many uncertainties affecting the monetary prospects for the autumn.
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