Financial Notes
MARKETS REACT.
Fon the first time for some while investment securities have suffered a fairly general set-back, and the main explanation is to be found in the unexpected developments in the monetary situation, referred to in the article above. Expectations of a lower Bank Rate had led to a good deal of laying in of stack by speculative investors, and realizations have been respon- sible for the reaction. Not only, however, has the set-back been of a moderate character, having regard to the pro- longed advance, but most of the speculative markets have been comparatively little affected, though English Railways have drooped. Moreover, while the large gold withdrawals which have taken place may well explain the present stringency in the Money Market and the need for firm rates, 1 do not think that the situation is necessarily indicative of a changed view with regard to the outlook for investment stocks generally. * * *
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