MONETARY CONDITIONS.
The usual pressure at the end of the year for accommodation in 'connexion with annual balance sheets has been in evidence in the Money Market, but with the turn of the year will come at least temporary ease though the length of its continuance 'must depend somewhat upon the rapidity with which the taxes are collected. As a matter of fact, the real cue to monetary .conditions early in the new year will be given by the drift of gold movements. During the past week the American 'exchange has gone slightly in our favour, but some of the Continental exchanges, including the Dutch, are still showing an adverse tendency and the Bank of England has lost a little more gold on balance. Each week now, however, the arrivals of gold from South Africa are fairly large, and if it is found -that the Bank of England gains a fair proportion of such gold, hopes of rather easier monetary conditions can be entertained.
on the other hand, the metal is still absorbed in other directions, there is no gainsaying the fact that not only are very steady conditions in the Money Market likely, but there will be some apprehensions as to whether a higher Bank Rate will become necessary. At present the more general belief favours the continuance of the 5 per cent. minimum for a con- siderable period.
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