There is one factor in the present Jeconomie situation which the United States cannot control, and that is the Jeonstant influx of foreign funds. The [whole country is learning: that however much the United States can talk jabour isolation it cannot escape from the Impact of not only economic but also political conditions in the rest of the world, One reason for the influx of foreign funds Is undoubtedly economic, American stocks are considered to ne better bargains than home stocks from the investment point of view, But another reason for the influx is undoubtedly political, European investors {eel that their money is safer in the United States than elsewhere. One government authority declared that the ups and downs of the European peace' barometer were of vital im-Hportanee to anybody who wished to follow the market, He used the word barometer rather than thermometer [because he felt that pressure rather {than heat was the controlling influence in Europe at present.
"Whenever the situation in Europe appears to be improving the flow of funds into the United States becomes ess, The series of peace talks and Prophecies which occurred in late March and April for example cut off the supply of foreign funds, checked the pressure, and the stock market! Jdectined. There were naturally other factors but the diminution of "hot money" from abroad undoubtedly was a large contributory factor.
Text read from the printed page and cleaned; old type leaves the occasional error.