Financial Notes
UNSETTLED MARKETS.
IN a previous column reference is made to the possible effect upon the stock markets of the result of the General Election. Needless to say, these remarks must necessarily be largely in the nature of conjecture. So far as the past week Is concerned, however, there is no question at all that the three outstanding factors which have been a predominant Influence for so long, namely, the General Election, the Reparations Conference, and the financial situation in the United States, have exerted a supreme influence, with the result that business has been severely curtailed, while on the Whole the tone has been dull owing to the feeling of nervous- ness prevailing. Each one of these influences, however, was easily discernible some months ago as a factor which must inevitably affect the situation during the first half of the year, and I am inclined to think that anything which tends to remove the element of uncertainty may not be without its ultimate favourable effect upon markets, always, of course, provided that in the event of a Labour victory at the polls, we do not get legislation directly detrimental to the financial interests of the country. At the moment of writing, there comes the (Continued on page 878.) news of quite a substantial slump in Wall Street, and this fal comes on the heels of some weeks of previous dullness in prices. If, therefore, the spirit of speculation as distinct from invest. ment should have been broken on the other side of the At. lantic, undoubtedly much would have been done to-bring about healthier financial conditions generally Of this, however, it is too early yet to decide, and inasmuch as what EUrope requires is that American nationals should change their present habit of speculating in Ordinary shares to that of acquit* first-class bonds, both domestic and foreign, it is obvious that a considerable time must elapse before any such change cati take place.
Previous page
