"HEDGING."
Nevertheless, I cannot help thinking that some of the other influences which have to be borne in mind are so • important as to constitute a considerable barrier to the hopes of a great and early appreciation in fixed interest stocks. In the first place, I do not believe there can be . any further great appreciation in our own national stocks until there has been drastic economy in the national expenditure, and of that there seem to be few signs, though one is glad to learn from the Press during the past week that the Governor of the Bank of England has been in conference with the Prime Minister. Again, there has to be borne in mind the enormous demands for capital from all parts of the world as well as the constant issues of high-class investment stocks by Oversea Dominions, British Corporations and English Railways. In addition, we have to remember that even with de- pressed trade in our key industries, Bank Rate is 4f per cent., while the advances of joint stock banks, traders and others stand at an almost unprecedentedly high level. -During the next year or eighteen months political develop- ments in the shape of elections here, in France, the United States and Germany also promise to be of an exceptionally interesting character, though to what extent political uncertainties will affect the gilt-edged market for good or for ill it is impossible to foresee. On the whole, therefore, and while the counsel may seem timid and halting, I fancy that not a few who may be large holders of the 5 per cent. War Loan will be inclined to "hedge" .a little, and while, perhaps, realizing some portion of their holdings at the current price, will not be afraid to retain a considerable portion.
ARTHUR W. KIDDY.
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