Tun GOLD STANDARD.
Of course, in considering the outlook for investinent stocks, some allowance must be made for the possibility of the Government attempting some further conversion proposals even if such conversion was on quite a modest scale, and I ern not all suggesting that we are likely to see any really serious break in investment stocks. Un- doubtedly, however, the point which investors now have to scrutinize very carefully is, first,- the character of the decision to be reached with regard to our return to the Geld Standard, and, second, the probable effects of that decision. Despite the divergence of opinion which pre- vails, I am still inclined to the view that the Government is likely to readopt the Gold Standard and the free gold market. Not only so, but if that course is taken there is a good deal to be said for acting quickly, for until we are really on the Gold Standard the movements in the Bank Rate do not accomplish very much beyond the retention of foreign balances, and what, of course, is required is that in normal times we should be able to control the Foreign Exchanges by reason of the real trade balance in our favour, only resorting to the high money rates under exceptional circumstances.
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