THE STOCK MARKETS.
For the 'first time since the crash last year Stock Market
activities have again recently had a prominent space on the front pages of newspapers. The rising prices and the increasing volume of sales provide further indications of the widespread revival of public interest in the markets. Last week's transac- tions on the New York Stock Exchange, aggregating more than twenty-six million shares, were the heaviest for any similar Period Since the collapse. Thus public optimism for the return of normal business prosperity confirms that of the business leaders who have been collaborating with President Hoover to ensure it. The question now arises whether the increase in Stock Market activity has not outrun a little too enthusiasti- cally 'the improvements in the industrial situation actually recorded Or in sight. -Believing that it has, many "authorities are disposed to advise caution in both investment azidbanking policies. In this 'connexion clearly the Federal Reserve Board once more faces - a difficult probleni. In reducing 'the rediscount rate to stimulate industry the- Board ' obviously RMS. the danger of stimulating simultaneously airother out- burst of injudicious speculation. The'Board is not unmindful of the danger, and is giving much thought to the means whereby it may be averted. Congress, which has recently appointed
a Committee to investigate the banking and credit posit ion, is also keeping a watchful eye upon developments.
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