Money and Exchange

Money rates remain unchanged, even the variable call rate fluctuating closely around 5 1/2%. The advance of the New York Federal Reserve rediscount rate last week to 4 1/2% was reflected in the rise in the ratio of that bank from 79% to 80.6%. Bonds remained unsettled, and, though stable, seem to have reached a high level for their present movement. Public interest is plainly going over to stocks, and to appreciation in price rather than rate of interest return.

Foreign exchange rates, after their recent wild fluctuations, proved steady. In the case of German marks, which remained at the same low level for more than a week, this was extraordinary when it is remembered that the Reichsbank successively issued 440 billion and 420 billion new paper marks during the past two weeks. Indeed, almost 1 1/2 trillion marks, or about 50% of the present outstanding issue, were added during February. Under such conditions it is plain that the present efforts of the Government to stabilize German exchange rates are foredoomed to failure.