OPTIMISM IN THE STATES.
During the past few weeks there have been some further interesting developments in the financial and economic situation which on the surface, at all events, are by no means unfavourable. It is good, for example, to note that at long last some of the leading commodities, notably metals, but also wheat and rubber have advanced moderately in price, while American securities, which were in a parlous condition a month ago, have rallied almost sensationally. When, however, the causes of these movements are investigated, it is found that they also must be attributed in part to influences of an artificial character and directly connected with Government action. In so far as the rally in American industrial and railroad securities has been due to purchases by those who regarded them as unduly below their intrinsic merits, the movement is, of course, a natural one, and, indeed, it is fair to say that the spurt in the American market seems to have begun along those lines. At the same time, there is also going on in the United States what the President of that country has been pleased to describe as a Campaign against Depression. How far this campaign may . be connected with political campaigns in view of the forthcoming Presidential election it_ might be unkind to enquire. Some months ago Washington took what was probably a wise course in enlarging the (Continued on page v.)
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