Current Situation

No new trend in the Nation's business appeared during the past week. Money, after the first of the year strain, became noticeably easier.

Gilt edged bonds continued dull with a falling tendency, while stocks continued their rise, although more moderately than in recent weeks. The industrial situation continued to improve. Slightly firmer commodity prices were permitting inventories to be marked at satisfactory figures, while production in iron and steel, as well as in other basic industries, continued to advance.

Perhaps the crux to future conditions in both our financial and commercial markets at present lies in the evident desire of Great Britain to regain the gold standard. The attainment of this aim, held visionary in London only a few weeks ago, is now expected even in conservative quarters within the next six months. The effort to regain a gold standard for the pound sterling is of prime importance in really bringing about a reconstruction of international trade and financial conditions. The effects of such a step are at present only to be conjectured. To the U. S., the chief results are likely to be larger foreign loans, reduced gold supply, increased exports and imports, a rise in interest rates and a higher level for foreign bonds which have been floated in the U. S.