Financial Notes
16/011E CONFIDENT MARKETS.
Tut new account on the Stock Exchange began cheerfully on Monday in consequence of the strength displayed in Wall Street over the week-end, and a quite surpris- ing power of resistance was shown to the adverse happen- ings in the early part of the week such as the failure of an old-established firm of metal merchants, the revolution in Chile, and the political uncertainties in Germany. The changes in the German Cabinet, indeed, and the dissolution of the Reichstag seemed to be taken as a bull point for Europe on the ground that if it should result in a strong German Government, of whatever colour, the change must in the long run be for the best. There must, nevertheless, be a period of uncertainty and the early rise in German Bonds, based upon -sentimental rather than practical grounds, was not fully maintained. Chilean securities had already fallen to nominal quotations and the revolution made little difference to prices, despite the avowed Socialist character of the new Dictatorship. The strength -of the market for British Government securities has been maintained, however, upon the prospect of a continuance of easy money, which is enhanced by the uncer- tainties abroad and the consequent concentration of investment demand upon the relatively narrow circle of safety first" securities.
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