FINANCIAL NOTES
MONETARY AND OTHER FACTORS
BOTH the Money Market and the Stock Exchange may be said to have been dominated during the past week by two factors which are closely linked, namely, monetary considerations and foreign borrowings. Concern with regard to the former was quickened by the announcement on Friday of last week that the New York Federal Reserve Bank had raised its Re- discount Rate from 8i to 4 per cent., thus coming into line with the other American Federal Reserve Banks, which made a -simnel. advance during the autumn of last year. In some quar- ters this movement on the part of the New York Federal Reserve Bank was regarded as indicating the likelihood of an early rise in the Bank Rate here, though in other quarters the view was taken that the effect of the rise in the New York Rate would be to check speculation on the other side of the Atlantic and to bring down Money Rates there, in which case there should be little need for a rise in our own Bank Rate. Moreover, it was also felt that the period of the year is in our favour as regards foreign exchange movements and = that unless gold exports were heavy, the banking authorities here will be loth to impose a higher Rate
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