INTERNATIONAL FINANCE.
If the home situation shows little sign of rapid improve, ment in industry, the overseas situation provides even less ground for encouragement. Messages from abroad on the subject of the forthcoming German debt discussions, the actual negotiations regarding Austria's financial difficulties, and the implacable attitude of France on Reparations payments, have again brought international politics and finance into the limelight. International affairs were one of the primary causes of the first decline of sterling from its gold parity, and it is therefore not surprising that a further fall in the value of the pound, when overseas finance is again uppermost in the public mind, should be regarded' by prospective purchasers of industrial shares with less equanimity than when the gold standard was first relinquished in September. Some of the circumstances surrounding that event are now assuming their real market significance. It is quite true that a lower value for sterling should mean sonic- thing, of a temporary bonus for British export trade, and the market is undoubtedly right_ in. taking this aspect of British economics into consideration. But far more than this is necessary before our trade prospect, and with it the ultimate outlook for industrial securities, can be regarded as definitely clear. Inteinational inter- course must be restricted while the finances of the world are in a state of flux and while depression exists in almost every country. Until financial stability and economic prosperity are restored, currency deprecration can, ' at best, provide only minor and temporary advantages.
In some respects, of course, British industry stands on a better footing than it did a few months ago. This, as recent price movements have shown, provides no reason for following market movements such as the recent " boomlet " in industrial shares, without taking a wide survey of all the influences involved. It may be recalled that Mr. Arthur W. Kiddy, writing in this column, .recently sounded a note of caution on the subject of the rise in industrials on the strength of the currency depreciation. Prices have come back since that note was sounded, but caution is still necessary. A. II. 1).
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