FINANCE-PUBLIC AND PRIVATE CONFIDENCE in the Government, comparative steadiness on
the Stock Exchange and determination to co-operate in resisting the challenge to Constitutional Government, summarises the general conditions in the City during the strike. If the views of the City were to be surmised merely from the movements in money and securities, it might, indeed, almost be supposed that the City, if not indifferent, was at all events inclined to regard the strike lightly. Government Securities have fallen barely I per cent. in spite of the fact that National Expenditure will be enlarged as the result of the strike and that taxation is almost bound to be increased. Indeed, there has already been talk in some quarters as to the necessity for a Supplementary Budget. Home Railways, it is true, have fallen some two or three whole points during the week and a few of the speculative Industrials in which an account was opened have yielded a little on some realisations. On the whole, however, the effect so far upon Stock Exchange prices has been no greater than might have been produced, say, by unfavourable political rumours, a rise in the Bank Rate, or some solitary commercial failure. Similarly, in the Money Market, it has merely been a case of loans being in rather better demand, with an increased demand for currency and discounts rising from 4154- to 4;'z per cent. As for the position of the Bank itself, there has been improvement rather than otherwise, for, during the past fortnight, the Bank must have gained more than £2,000,000 in gold. In the Foreign Exchanges, too, there has been comparative steadiness and the American Exchange, after falling to 4.85} has rallied to about 4.851.
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