The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1855-10-09 00:00:00

THE LIVERPOOL STANDARD.

COMMERCIAL and MONETARY NEWS.

MONDAY NIGHT.
THE week has been one of anxiety and confusion in
the Money-market, owing to another increase in the
minimum rate of discount by the Bank of England,
caused by the continued demand for gold for France,
but which created so much surprise that the Funds
have considerably declined, and the operations of
speculators for a fall proved quite successful. We have
commented in a leading article on the circumstances
which have most probably influenced this state of
things ; we may remark, however, that, notwithstand-
ing the evident indications of pressure, money for com-
mercial purposes has been comparatively abundant ;
and had it not been for the movement of the Bank,
and the uncertainty which prevailed as to the proceed-
ings of the Bank of France, the rates of discount
would no doubt have been easier. The Bank returns
on Friday show some rather important changes. Under
the head of "other securities" there is an increase of
no less than £1,406,485, showing the large demands
which have been made for accommodation. The reserve
of notes unemployed is reduced by no less than
£1,091,245, leaving it, however, at £6,195,570, the
large reduction being accounted for by a decrease in
the stock of bullion of £329,679, and an increase in the
notes in circulation of £764,250, which, together, make
the amount within a fraction. The other changes are
comparatively unimportant. With reference to the
extraordinary demands for gold by the Bank of France,
the Times of Saturday, in its City article, says

The mode in which the greater part of the gold sent from
this side has been obtained by the Bank of France is asserted
not to have been by accommodation paper between the houses
employed in the transaction, but simply by their clearing the
market of all the bills and bank-notes on London that could
be procured. The whole process therefore appears to have
been has follows :—The Bank of France proposed to the house
of M. St. Paul, of Paris, to pay a high price for a certain
amount of gold ; this price was such as to enable M. St. Paul
to give high terms for draughts on London, which were ac-
cordingly bought up in all quarters and transmitted to agents
on this side, with instructions for the proceeds to be remitted
to Paris in gold. On the gold being taken to the Bank of
France the payment for it to M. St. Paul, of course, took place
in the notes of that institution,' and in this way the affair of
the first £3,000,000 was accomplished. But it is not to be
supposed that the amount of bills naturally obtainable in
Paris would have furnished the full supply. The artificial
prices offered attracted bills from other quarters of the conti-
nent, and thus the remittances have probably been composed
of all the floating claims on London that could be transmitted
to the Paris market from the trading ports of Prussia and of
other neighbouring countries. Whether the negotiation of
the remaining £1,000,000 was managed in the same way is
uncertain ; but, assuming even that the whole £4,000,000 has
been so obtained, it may be regarded as the withdrawal of an
amount which must, sooner or later, come back. If, for in-
stance, the average total of claims on London afloat on the
continent of Europe at all periods when the rates of exchange
are not against us is £10,000,000, and that average be suddenly
reduced by £4,000,000, our position in relation to the conti-
nent is precisely to that extent better than in ordinary times;
and, while the average is being allowed to regain its former
aggregate, we shall derive the benefit of retaining £4,000,000
that would otherwise, in the course of trade, pass through,
instead of stopping in this country. Doubtless, if all the ne-
gotiable claims of England on the continent were suddenly
collected together, and sent over for realization in the same
manner as the claims upon us have now been accumulated
and presented, we could at any time draw thence an equal
or much greater amount, and it is the advantage of the raising
of the rate of discount by the Bank of England that it pro-
motes in a legitimate, instead of an artificial manner, a process
of that description, inasmuch as by rendering money scarce
it induces the commercial communities to call in from abroad
every amount that may be available.

At Manchester the commotion in the Money-market
has had a depressing effect, and business has in con-
sequence been brought almost to a stand, with a
decline in the prices of yarns ; but manufactured
goods, which are chiefly for the American market,
continue in good demand. In the Woollen trade,
although the upward tendency has been checked,
former prices are maintained, and as winter approaches
there is every probability of a good amount of busi-
ness being done. The Hosiery and Lace trades are
also in a favourable position.

Messrs. T. and H. LITTLEDALE and Co., in their
circular published to-day, make the following general
remarks :

Six weeks of more splendid weather for securing the entire
harvest of this country was perhaps never witnessed than from
the middle of August to the present time. This has been a
vast boon, as well in repairing some of the previous damage
done to the Corn as in staying the disease in the Potato crop,
and for a while seemed to remove the apprehension of a
deficient harvest ; but since the thrashing has commenced, the
yield is found to be short, and a large decrease on last year
can no longer be doubted. Against this, however, is the fact
that last year's crop, aided only by an import of 4,600,000 qrs.
of Grain and Meal of all kinds for the first eight months of
this year against 6,950,000 qrs. in the, same period of 1854,
has given at least thirteen months supply, leaving only eleven
months to be supplied out of the present crop —equal to a de-
crease
t muste
d
of one-sixth—in addition to this, there is the large
beo
removed r e a
the
bset still
largedeficient,
shipments
increase in the supplyupply of Food from the comparative soundness
l fears
to rs
of the Potato cf Bds tu f f
bys i rop ; but if it should be found that the supply
come
aectfurealmscatbrceituy
States, whence we received nothing of moment last season.
Prices will continue to rule high, but we think they will pro-
bably reach their maximum before the end of the year, after
which the American supply will come in more freely, as no
great quantity can be shipped until November, owing to its
condition. Our general Produce markets are in a sound
healthy position; indeed in most of the leading articles there
is a deficient stock, and notwithstanding the rapid advance of
2 per cent. in the rate of discount by the Bank of England,
prices remain about the same, with the single exception of
Cotton, and in this the cause of decline is rather the anticipa-
tion of a large crop than the effect of tight Money.

- _
On the present position of the Money-market they
say :
The extraordinary decrease in the stock of Bullion in the
Bank, amounting to Five Millions in the last three months,
has led to a similar unusual proceeding by the directors—the
advancing of the rate of discount on two succeeding weeks,
and this repeated twice, the whole advance from 31 percent. at
which it stood on the 6th September to 51 per cent. on the 4th
instant, being made in one month. What can be more disas-
trous to commercial stability and enterprise than such a pro-
ceeding as this ? But the question asked by everyone is—
Where has the Gold gone to ? No doubt one-half of it to
France, to supply the vast deficiency there and to support the
credit of the Bank, under a too low rate of discount (4 per cent.,
now raised to 5), and the rest to the seat of war, China, and
the East Indies. But it is said by some to be entirely owing
to the war drain.—Why, then, was it not felt in the first five
months of the year, when the Bullion increased one million
more than it has now decreased—say, from £12,162,000 on
the 20th January to £18,109,000 on the 23rd June ?—or, if it
is really caused by the war drain and the state of the Bank of
France, why were not these actions foreseen by the directors,
to prevent them making the last uncalled for reduction from
4 per cent. to 31 per cent. at a most critical period of the year.
The extreme suddenness of the movement has, no doubt,
added greatly to the anxiety of the Bank and the public at
large ; but now that the cause is pretty well ascertained to be
the heavy purchases of Bullion by the Bank of France,
amounting, it is said, to £4,ooo,ooosterling, and the increased
exports to China and the East Indies, amounting to £2,600,000
in the last three months, against £1,400,000 for the same period
last year, that anxiety must be greatly mitigated by the know-
ledge that the borrower must shortly become the re-payer, and
that if we are not actually indebted to France these four
millions, the commercial principle must triumph eventually
over any mere financial scheme, and the money find its way
back to this country. The sound position of commerce, and
of the trade of the country generally, with the comparative
scarcity of mercantile paper, must also tend greatly to
strengthen confidence in the future.
Our SHARE-MARKET has been inactive all the week,
and prices have fluctuated within a range of about
one-half per cent. The further raising of the rate by
the Bank has tended to discourage speculation, and
purehases for investment are prevented, from an
apprehension that prices will be lower, from the rise in
the value of money being adverse to a• renewal of
loans on moderate terms. Great efforts are being
made to dissipate the late unfavourable statements
respecting the London and North-Western and other
companies, but no official statements have been issued
with figures, which alone will now satisfy the public.
Local stocks are steady and in active demand ; in
these alone at present is confidence placed. This day's
prices are—Caledonians, 30} ; Eastern Counties, 91;
Lancashire and Yorkshire, 751 65i ; London
Stock, 92 11 ; Midland Stock, 641 1 1 1 ; South
Eastern, 171 ; Manchester, Sheffield, and Lincoln,
£lO pref. shares, 121-; Dutch Rhenish, 4d ; Bank of
Liverpool, 23,1; Union Bank, 11+.
COTTON.---Notwithstanding the difficulties in 'lke
Money-market, which tend to paralyse speculation,
there has been a fair amount of business doing in
Cotton, owing to spinners having continued to supply
themselves moderately; but holders having offered
stocks freely, prices have slightly declined, say from
1-16 d. to Bd. per lb. The sales for the week up to
Friday amounted to 40,880 bales, of which 1,740 were
taken on speculation, and 5,750 for export, leaving
33,390 for the trade. TO-D4Y, the advices by the
Africa were received, and stocks were again freely
offered ; but the demands of the spinners were to a
fair extent, and the sales amounted to 7,000 bales,
including 1,000 for speculation and export. Prices
were, however, barely maintained, though no alteration
is made in quotations. The following is a comparison
of present rates with those of the corresponding period
of last year :---

1854 1855
New Orleans, middling 5 6-16 6 16-16
fair ......... ...... ,6 61
Upland, middling -16 51
fair ........• ........
PRomacE.---The Sugar market has been quiet, but
without alteration in prices. In Coffee no change.
For Tea a good demand. In Rice a fair amount of
business done. Rum 2d. per gallon dearer. For
Tallow a good demand, at 61s. for P.Y.C. TO-DAY, our
Produce markets generally have become flat, and of
Sugar we have only to notice 330 bags Bengal, at 455.
to 455. 9d. for Dates, and at 465. 3d. to 465. 9d. per cwt.
for Benares. 20 puns. Jamaica Rum are reported at
4s. 6d. per gallon ; 110 puns. Antigua and St. Vincent
have also been sold, bnt the prices have not transpired.
The Tea market continues steady, with a fair inquiry