Current Station

After the election results were received and digested by the public, the stock market proceeded to go immediately on record as optimistic of the business future. The obliteration of LaFollettism removed a heavy prejudice against rail securities; at the same time, basic industries like steel and oil gave signs of expansion and higher prices.

Money shows a slightly firmer tendency, despite the fact that call funds have again gone back to the 2% midsummer rate. Nevertheless, the overwhelming sufficiency of funds here precludes much danger of an action in interest rates according to overrigid ideas of business cycles.

The recovery in Europe occasioned by the adoption of the Experts' Plan is generally recognized. Foreign funds are being withdrawn from Manhattan, which is one important factor in rising exchange rates for sterling and other European currencies. Large sums are reported to have been already advanced by banks to foreign industries and enterprises; at the right time, these banking advances will be funded into security issues and offered to the public. Thus far no very risky financing has been undertaken. The time for that to develop is later.

The signs now point almost unmistakably to business prosperity next spring. But those who are bracing themselves to see miracles will probably be disappointed.