The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1869-07-31 00:00:00

E4c 3tourflribge ODstriler.

SATUItDAY, RAT 81, 1801

common AND PINANCX.

A kap [Masher of 1 alat.ateek hanks ii aye re•
einatly held their kelf•yeal ly insaetinge. and tam
preveiling tone of the repurte is ti.) similar and
an deeided that these reports may be taken as
indieating, to a large extent, the commercialil
financial position of the country. The almost
madam tale is that business generally has been
dull, that enterprise has been restricted, and
that confidence, which had been so largely sha-
ken, hail not entirely recovered itself; bat that
nevertheless the shareholders might he congrat-
ulated on the business of the hank, considering
all this, having been highly satisfectery ; and
that this has been so is shown by the dividend
declared. This, we say, has been the almost
uniform story ; and it is encouraging as am in-
dex of the commercial state of affairs beyond
the region of banking business. A large num-
ber of bank,* cannot declare dividends, as the
iiint-stook banks have umnistakeably done.
without a good reason for it. Banking business
at all events has been flourishing, but this could
scarcely have been the case had not business
generally improved. On the other hand the de-
claration of good dividends by so large a num-
ber of banks, to say nothing of a number of
public companies, will have Is very beneficial
effect on the progress of business. And, in-
deed, there is reason to bliss's Bad our commer-
cial and financial position altogether Ints consi-
derably improved, and that the improvement
which is shown by the dividends of our joint-
stock companies will continue to make itself felt.
Business is still far from active, but, at least,
there is no dierieting cause for the dulness that
Mill exists. Confidence is gradually becoming
restored, and confidence begets confidence quite
as surely as fear begets fear. The time of year
is not now favourable to speculation and re-
newed enterprise, but present financial aspects
bid fair to bring increased speculation, and com-
mercial and financial activity which we have a
right to expect. We have a wearisome political
battle fought out amid an amicable settlement
effected; we have good harvest prospects; and
the relations between employer and employed,
are, on the whole, 11101.111 amicable than they have
been for years. Money too is very plentiful.
The demand for it being languid, and the supply
in the discount market having increased, there
bas been a continuance of low rates. In the
Open discount market the terms are fall a half
per sant below the bank minimum. This fact
in itself ie of little moment, but taken in con-
nection with the fact that the general discount
market has long been lower (and consequently
snore favourable to the expansion of business)
than at the Bank of England, and taken in con-
nection 11610 with the growine. power of the joint
atock banks, the fact is signitlealit. It plainly
indicates the gradual arrival of the time when
the Bank of England chartered monopoly will
Cease; when we shall have, as we ought to have,
free trade in money; and alien this great bank-
ing corporation will not have the power, as it HUN
has, to disturb the commercial world by its sud-
den raising and lowering of the rate of discount.
We are quite aware that the hank directors act
with a good deal of caution and prudence, but
we are quite certain on the other hand that the
Bank Charter Act is quite opposed to the pre•
sent free trade principles affecting the commerce
mei finance if the country. The joint-stock
banks, founded on a better 1-nlseiple than that of
Ile Bank of England, are evidently gradually

forcing the tiAnk 1.9 Cmidilet ite basini-s: on
trade ri uci lespi.e its Clisrt,ir and its pis- 5-
tige. This is tof is enconrazinEr, and, on tin.
whole, our commercial and financial affairs look
healthy, both as to their position anti their
prospects.

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