The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-18
NOW TIGHT IN ENGLAND
CAUSE or THE PRESENT FTNAN-
CFAL DEPRESSION.
Country Is Prosperous. but Capital Is Shy
On Account ~ Character Of Present
Government and Its Programme Fear
OF Labor Movement Partially onset.

Special Cabr. Despatch to THE SUN.
LONDON, Nov. I7.-Much that Ia mi5lead-
ing has been written in the past month in
explanation of the extreme f~inancia de-
preston in this country. but little has been
said about the chief factor of the situation.
Investment securities and stocks Of all
descriptions with a few exceptions have
been depressed almost without precedent
for many months past. The money squeeze
and the high bank rate carried the market
from bad to worse and for a few days re-
duced Capel Court to gloomy despair.
This condition is paTadoxioal in view OF the
fact that trade has improved wonderfully
in the past year or two and business in the
ordinary sense has been good.
Although not ~rivallinG the amazing pros
perity of the United States, England has
been making money on a liberal scale and
never, perhaps, in her history has she ac-
clmulated such a great volume of capital in
private hands, but Englishmen for almost
the first time have been initiating their
French friends and carefully boarding
their profits and savings.
The one thing lacking in the financial
world has been public confidence. In
vestors seem for the time being to have
lost faith in British institutions as repre-
sented by dom este securities. The reason
for this is not far 90 seek. 1t rests in the
present Government Of the country and
its programme. The danger Of socialistic
and labor legislation has thoroughly alarmed
the investing public without regard to
partv and many Liberals now ruefully
admit that their party is largely responsible
for the grave financial depression Of the
a g o--Nh. SRnkh AfFinA TpTplk p0
the first blow. and it will he Ions ""'ot,
her great mining industry RECEIVERS.
Now the passage Of the trades dispute
hill. which makes trades unions irresponsible
financially for anything they may do, how
ever illegal, increases public apprehension
Mr. Balfour's course in withdrawing oppo-
sition to this measure has called down upon
him stronn indignation within his own
party. He has made it practically I'M
possible for the House of Lords to reject
the bill.
The fears Of a great labor movement
which will paralyze the industries OF the
country are now being partially offset by
the evidence Of a sharp change in political
public opinion as shown in the local elec-
tons a fortnight ago. The reaction against
the present Government has come more
quickly than ever before in English political
history and it cannot be doubted that II a
0eneral election could be held at the end
81 the year the Liberal Government would
he defeated. This would not be accom-
plished by a complete overturn OF the
popular majority but by a split i'm the pres
ent conglomerate parliamentary majority.
The Labor party has grown so strong
that il would run its own candidates in
MANY districts against both the Liberals
and Conservatives. The result would be
a plurality for the Unionists in many dis
tricts which are o represented by Liberal
Labor members. This. added to a very large
change in the popular vote from Liberal
to Conservative, would insure a return Of
the party Of which Mr.. Balfour is still nomi-
nally the leader.
This evident trend Of public opinion IL
already beginning TO revive confidence
among the investing public. They are
inclined TO believe that the worst has now
happened. Besides. there is a strong dis
inclination to leave money too long idle.
Purchases OF investment securities by the
| public have begun on a considerable scale
in the last few days despite tight money.
and as soon as market conditions ease a
little it is probable that buying will begin
on a large scale Inc most Of the financial
authorities look for much more cheerful
times during the coming winter.