MONETARY PROSPECTS.
Such being the case, it would not be surprising if atten- tion were first turned to British Funds and other gilt- edged securities which have been affected in special degree of late by the combined effect of the abandonment of the gold standard and the high Bank Rate. The unlikelihood of any early boom in trade increases the probability of somewhat easier money rates, and is not improbable that a great victory for the National Party, combined with unrest and lack of confidence in some other countries, in- eluding the United States, might lead to a certain amount of foreign money coming here, in which case it is likely that our Bank Rate might be lowered. On the other hand, it must also be remembered that the state of the National Finances is scarcely such as to warrant 'fancy prices even for British Government stocks, and on the whole I should look only for a moderate rise with sustained firmness. As to Industrials and the more speculative groups of stocks, it would not be surprising if there should be a good deal of activity in the near future, because there will be that in the newness of the situation which may call forth a good deal of pleasurable anticipation, though whether the anticipation will be justified by results it is impossible at present to determine. Uncertainty, in fact, must necessarily be a prominent feature in the situation for some little time to come, both as regards local and international developments, though the establishment of a strong Government in this country, pledged to Economy, will not be without its influence upon many other centres.
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