Financial Notes
FAVOURABLE MARKET FACTORS. WRITING
on the eve of a Budget which promises to be More than usually interesting, it would, .perhaps,' be rash to say that the financial barometer is. at, Set Fair: ' At the:- same time there are certain favourable: .po-inti in the situation which undoubtedly require adequate i'peagnition, Chief among these is the growing strength of the position of the Bank of England, where the stock of .gold must be approaching the highest point -e"iier. reached. In. that connexion, of course, it is necessary to remember,, first, that since the War there has been a great enlargement of credit generally, of which the expansion in the deposits of the banks is only one of the many indications. Moreover, if a Bill is shortly to be introduced for amalgamating the Treasury notes with the Bank of England issue, there is bound to be a great drop in the proportion of the Bank's gold to its notes, though that, in its turn, will matter less than formerly owing to the fact that gold is no longer in free circulation as currency. Another favourable point in the situation is the slight improvement in trade which, it may be hoped, will receive some further stimulus from the Budget if Mr. Churchill fulfils the prophecies of those who have suggested that one of the-primeleatures of The Budget is to be the encouragement of British:industries. =In another eolumii. we -.deal more fully with the' first impressions of Mr.: Churchill's. financial
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