CONTINENTAL DEPRESSION.
Moreover, added to local influences, the world-wide depression of trade and finance has affected markets for a long period, and anxiety with regard to conditions on the Continent of Europe has been intensified during the last fortnight by the disclosure of the serious financial situation in Austria and the grave conditions in Germany. Last week, indeed, anxiety with regard to the financial situation in the latter country and its repercuisions upon the position of the German Government became really acute, as there were unmistakable signs of heavy Withdraivals of fOreigri balances from Germany and also of something like a real flight from the mark. The Exchange moved rapidly againit Geri-rimy, and although this movement led to large gold shipments to London, such shiPments were not really welcomed, having regard to the causes responsible for them. On Friday in 14.s t week markets closed in doleful fashion, for, although there were vague rumours of some developments arising out of the visit of Mr. Mellon (of the American Treasury) to this country, the markets were unprepared for the sudden dramatic action by President Hoover. There seems, indeed, some reason for believing that it was the _original intention of Washington to link vety closely = the question of any reconsideration of inter- national War ,Debts with a campaign for disarmament in Europe, but that (hiring last week the American Executive became at last convinced of the urgent need ' for immediate action if a financial crisis in Germany was to be averted. For, while such a crisis would, no doubt, in the first place have severely shaken the European markets, the repercussions in America would have been very serious owing to the conditions of financial and industrial depression prevailing in that country.
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