Finance—Public and Private
The Gold Standard and
the Investment Outlook A GOOD many investors must, I think, have been some- what perplexed by the fact that the announcement of the abandonment of the gold standard was immediately followed by a slump in British funds and high-class invest- ment stocks, accompanied by _almost a , " boom " in industrial shares and some of the speculative descriptions including gold mining shares. Not unnaturally it is asked why there should have been these movements, whether the tendencies will continue, and if so, for how long, and to what extent? Is it advisable that investors who have hitherto regarded British Government stocks as an ark of perfect safety should now abandon them and, if so, for what reason, and in what direction should the proceeds of the sales be .re-invested ? I propose this week to deal Mainly with the motives inspiring the movements which have at present occurred in public securities and next iveck I hope to be able to deal more fully with the question of how far the present downward tendency in gilt-edged Securities and the upward movement in the more specu- lative markets are likely to go and how long they are likely to continue.
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