Financial Notes
DEPRESSED MARKETS.
Tirg depression chronicled in the first paragraph of these notes a week ago has been even more pronounced during the past week and the cause is the same, namely, anxiety with regard to the effect upon the general monetary situation of the boom in Wall Street and the consequent high money rate in New York. At the time of writing there is uncertainty as to whether gold will go to America or not during the next few days, but if it does in any Iiirge quantity, the feeling is strong that our Bank Rate here may have to be raised. Moreover, we seem to have reached one of those very difficult_ positions when it is not easy to see whether a higher Bank Rate would quickly become operative or not because it is not merely a contest between two Money Markets for the employment of balances, but a contest also between the New York Money Market and Wall Street which defies high money rates so long as there is a fair prospect of a big appreciation in the market value of securities. Still, the fact remains that during the last week or two the advanci in Wall Street has not been at all general or at all marked, and there is at least the possibility of the American public becoming a little tired of carrying stocks on borrowed money. Meantime, however, the general restriction of business and the dullness of tone here is empha- sized by the fact that the General Election, with all its uncertainties, is approaching.
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