THE WALL STREET SLUMP.
With regard to the recent slurnp in Wall -Street there is little which need be said in the way ofexplanation or comment, _for the main facts_ are simple. -Both in real estate and in securities there had been a prolonged specu- lation in Wall Street, checked slightly from time to time by increased charges for loans. Owing to the enormous expansion in banking resources, the actual proportion of loans to such resources may not have . seemed suffi-: ciently large to warrant such aslump as that which has recently occurred. It has., to. be remembered, however, that the controllers of American banking- resources are Very properly mindful of the much greater responsf- bilities devolving upon banking authorities in the States in these days when so far from looking to London for financial aid in emergency, as was the custom in the pre: War years, it is a case of remembering the extent to which European nations are now borrowing from the United States. Therefore, the banking authorities in New York are dispc,ed to check speculative activities before they get hopelessly out of hand, and one of the reasons why the London Money Market has not been greatly perturbed by the Slump in New York is because it is -hoped that it may lead to easier money rates in Wall Street, thus reacting favourably upon the sterling exchange. It is true that latterly there has been an appreciable rise in money rates- in London, but that has' been 'due to the simple fact that at the period of the year when gold usually flows in we have been gaining. little and. the Market has recognized that rates had been allowed to fall away unduly. . ,
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