Financial Notes
GOLD AND INVESTMENT STOCKS.
• WHEN dealing last week with the investment outlook I expressed the opinion that while for certain reasons, mainly . connected with the situation in the United States, markets, were showing some hesitancy, the position in the investment markets was one where investors would probably do well to take advantage of any slight setback in prices. That opinion is certainly strengthened by the development which has taken place during the past week in the shape of some unexpectedly large gold engagements frees the United States to this country.
• About- £4,000,000 has been definitely engaged of which £1,000,000 will have arrived by the time this note appears in print, while at least £3,000,000 will be coming next week.
.-Reports, which ha!ve., been current, that the gold has been . specially ordered in connexion with the impending fusion later • on of the Bank of England and Treasury Notes can be dismissed , as without foundation. . I - should say it is more probable
that those responsible for the engagement of the gold are net without hope that it may serve as a basis for useful expansion in - credit at a time when the proportion of bankers' loans -to deposits are already very high, while should a trade revival :set in there "will be still greater demands for loans.
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