Current Situation

This is the time when leaders in business are called upon to prophesy in the public prints, and do so. This year they have done so in great numbers, with great unanimity. Banker, lawyer, merchant-chief--all have rehearsed the Experts' Plan, agricultural revival, easy money, et cetera, et cetera--and have declared their optimism.

This favorable sanction under which business enters the year 1925 has been accompanied by an old-fashioned bull swing in the stock market, of great persistence and power. People not only are told that they are likely to make money during the next twelve months--they are already doing it in stocks.

Annual inventories have for the time being been the main product of industry. Presently these figures will be published, along with other items on the balance-sheet; and speculators will have a chance to see if their present attitude is right or wrong.

Money is easing, after a record year-end clearance. Temporarily, easy money is anticipated, followed by rising rates, when reviving business creates a larger demand on the banks for commercial funds.

The chief international topics of interest have been: 1) how to restore sterling to its par of $4.8665, and 2) how to keep it there. The second is much more difficult than the first.