THESE CITY " JITTERS "
- I see that the politicians have again been waxing eloquent about City " jitters," by which, presumably, is meant an irrational display of nerves. This is a matter in which a little more thinking would surely do no harm. Let me say at once that I have no sympathy with the kind of City specu- lator who, in a period of political tension, starts his morning gaily with a " bear " sale of gilt-edged and spends the rest of his day preaching death and desolation and fanning every mischievous rumour of the imminent wrath to come. His proper place is in a concentration camp. But this is by no means the whole and probably not even the main explana- tion of the heavy falls which take place in Stock Exchange prices in times of political tension. Those eminently respect- able institutions, the banks, are prompted, in the interests of their depositors, to increase their liquidity, and the same desire to get into a reasonably trim financial position in case the worst happens is responsible for a general cutting down of commitments.
If the argument is that the City takes unduly pessiMistic views, many would reply that it is the politicians, with their irresolute foreign policy, who are to blame. Nor is there much sense in turning to that favourite whipping boy, the jobber. In a market ringed by sellers and without a buyer in sight—not even those who apparently believe that prices are ridiculously low—what is a poor jobber to do except quote lower prices? He is not a philanthropist and he often has a family to keep. The Stock Exchange is really a baro- meter. It will point to fair when the weather is better—or enough people think it is going to be—but not until.
* * * *
Previous page
