The Press.
London, England, 1856-12-20 00:00:00

THE PRESS.

present return, as already stated, shows a position which
indicates growing strength ; while there is reason to be.
Have that the prospects of the Money Markets of Europe
in relation to this country are becoming favorable.
Under these circumstances the Bank Directors, anticipa-
ting the prospective improvement, yesterday reduced the
rate of discount from six and a half per cent., at which it
was fixed on the 4th December, to six per cent. It is
understood that in some quarters this policy is scarcely ap•
pro fed ; it may be called precipitate ; and its justifica-
tion is not very obvious to those whose engagements up
to the beginning of January have been formed upon the
assumption that no further change would be made until
after the release of a portion of the dividends. Gene-
rally, however, it has given perfect aatisfaction. It has
already eased the market, not only by the actual reduction,
hut by the amount of confidence it has inspired in the
future. Revenue payments w►ll be more easily made;
and commercial operations, still cautiou•ly undertaken,
will be attended with more satisfactory results. indeed,
if the change had not been made this week it is probable
that the Bank, which at the present period has the
virtual command of the discount market, would hereafter
have been justly blamed for its maintenance of unneces-
sarily high rates. For, during the greater part of the
week the market has been irregular, discounts at one time
being above and at another below the Bank minimum in
the open market, a circumstance not owing exclusively
to the irregularity of the demand, but to the various im-
pressions created by a consideration of the future. The
general tendency, however, was towards cheaper rates.
The Bank has now confirmed this disposition, and we
think the Directors have acted wisely in not deferring the
change to a time when it is probable we shall have
abundant arrivals of gold, in conjunction with large float-
ing amounts in the hands of the public seeking invest.
ment. Such a time is apparently not very distant. A
reduction at that period, assuming high rates to be main•
tained as long as possible, must necessarily be large, and
thus we should be exposed to the danger of money being
suddenly cheapened, while Rome millions were waiting
for employment. We need not point out the conse-
quences of such policy, first from inflation and then from
reaction. Every commercial man can anticipate them
for himself. The Directors are evidently preparing for
such a period by a gradual 'process, and in this policy
they cannot fail to obtain the support of all the sub-
stantial interests of the country. The system under
which they are bound to act has nothing to do with the
question ; the question is oue of prudent and wise ad-
ministration, and in that character few will be found to
blame the motives from which the Directors of the Bank
of England have acted throughout the crisis now happily
ended.

The discount•houses have reduced their rates to five
and a quarter per cent. for money at call, and to five
and a half per cent. for deposits with seven days' notice.
The joint-stuck banks allow five per cent. for deposits.

As already mentioned, the Money Market has been
irregular. No definite rate can be stated as the charge
for discounts out of doors previously to the reduction.
Yet with regard to long bills there was a general desire
and some competition to obtain the best—a circumstance
not unobserved by the mercantile body, and one from
which favorable opinions as to the future were very soon
drawn. To-day there was a steady and moderate demand
at the reduced rate.

The Bank of France, so far as we can learn, is still
increasing its stock of bullion. We have heard that it
now exceeds 8,000,0001. It is, therefore, relatively in as
gocd a position in this respect as the Bank of England;
and provided we were satisfied with the mode adopted
to replenish its vaults we should be under no adverse
impressions as to its permanent improvement. We are
not quite satisfied, however, with the financial prospects
of commercial France at the present moment. It is
suffering from the effects of unproductive speculation,
and its adjunct of scarce money; and its present state
is one of transition—a state - unsettled and

_ necessarily ,
uneasy. If the position of the Bank of France becomes
etrong enough, it will, after the severe lessons of the
past, be inclined to afford greater assistance to trade
than to the Bourse, and then we may expect commerce to
improve. The Bank is upon the way to this end, but
it remains to be seen whether it will be able to accom-
plish any speedy improvement. At present it has neither
reduced the rate of discount, which is six per cent , nor
does it take any but short bills. Some changes appear
to be expected in both these directions on the Ist of
January. What we fear is that, by being made simul-
taneously and also suddenly. they may stimulate the
speculative temperaments of our neighbours to an undue
and dangerous stage of excitement, from which there
will follow a painful reaction. We fear that a good deal
of capital which ought, legitimately, to be employed in
commerce, may be appropriated to speculations in Ren

The exchanges have taken a turn, and become a little
more favorable.

Specie to the value of about 300,000/. has arrived from
the United States and South America dining the week.
Rather more than 240,0001. of this amount was in gold,
and nearly the whole of it has been taken for France and
the Continent. Some weeks ago we expressed our opinion
that the reduction in the rate of exchange made by the
East India Company would not cause bills to be remitted
sufficient to stop, or even to mitigate, the demand for
silver from India. That opinion was confirmed by ad-
♦ices since received; and it is practically supported by
the enormous amount which will be sent ot•t by
toe packet leaving Southampton to-morrow. A por-
tion of the gold sent to the Continent in the course
of the week has been in return for silver; and we
are told that, though the supplies are just enough to keep
prices from rising, they must be considerably increased if
an advance is to be arrested. The following are the par-
ticulars of the export of specie to India by the packet
leaving Southampton tomorrow

Silver.

1219

Alexandria
Bombay £480,120 ..
Madras
Calcutta

Gold.
.. £3,150

1.,:.350

Total silver £4813,085 kt,500
Add gold 4,500

Total export
English Securities have been only slightly affected by
the state of the Money Market, but for a time the tone of
the note published in the Moniteur, on the failure of
French mediation to arrange the dispute between Neuf-
chatel and the King of Prussia, produced a strong feeling
of depression. Indeed, we cannot say that the market is
yet free from political susceptibility, seeing that the Con-
gress at Paris is about to open, and that the Swiss question
may give rite to awkward complications, while the war
with Persia threatens indirectly our pacific relations
with Russia. Just now there are two parties among the
dealers in public securities. One, viewing all things
coukur de rose, confidently asserts that the existing difficul-
ties and misunderstandings will be arranged almost inime.
diately without doing any harm; the other, sensitive to the
slightest details, and assigning undue importance to each,
almost despairs of a pacific solution in the present state of
European temper. These influences, combined with the
usual dullness of business at this season of the year, have
deadened the market, without, however, producing an
actual fall in prices. Consols, which left off last Friday at
931 to lex div., closed the same yesterday. The changes
in the intermediate days have been limited to somewhat
less than per cent. The note in the Monitetsr, for
example, depressed them from 93i to 93& ; but the redac-
tion in the rate of discount caused them to rally until they
touched 91, which was the highest quotation of the week.
During these periods opinion has been operating pretty
much as we have endeavoured to describe. At present the
regulating principle seems to be the Money Market almost
exclusively; bat political influences may regain the
ascendant to.morrow. And so we go on, everybody feeling
confident that if extraneous circumstances could be effec-
tually put aside, there are causes in operation which must
involve higher prices than can now be obtained. To-day
Consols opened at 931 to /, and remained at that quota.
tion until it became known that the Bank return would
be favorable, and then they suddenly improved }, closing
firm at 94 to I ex div.

Exchequer Bills have declined 2s. The present pre-
mium is 3s. to 7s.

Railway Shares suffered a considerable amount of
depression in the early part of the week. The contango
paid on Saturday and Monday for carrying over account'',
high as it was, was totally lost. The decline was not
caused by a pressure of sales on the part of the public—
for we never remember a time when the public held
their stock more firmly—but by the natural tendency of
the market created by the circumstances which depressed
Consols. However, yesterday there was a complete
recovery, and today it was confirmed with a slight advance.
In the Foreign Market the principal movement has
been in the two classes of Turkish securities, both of
which have fluctuated and improved with Consols and rail-
way shares.
Banking Securities have not been in much demand,
but prices have been steady. Commercials have advanced,
owing to the satisfactory explanations given at the meeting
on Tuesday.
In Miscellaneous descriptions the only circumstance
worth special notice has been a considerable fall, and as
complete a reaction, in Canadian Land Stock. The
dividend being only 305., led to a little panic, but in less
than two days it entirely disappeared.
Mr. Herbert Taylor has been elected a director of the
Commercial Bank, in the place of Mr. Oxenford, resigned.
At the meeting at which Mr. Taylor's election took place,
Mr. Hunter, the chairman, gave a variety of explanations
as to the position of the Bank, which completely dia.
posed of some late injurious rumours. The fullness and
the frankness of these explanations was appreciated by
the proprietors, some of whom seemed to expect only
reserve and secrecy. The course adopted, however, com.
pietely won the confidence of all ; and public opinion has
since shown that it is completely reassured.
The London Discount Company commenced business
yesterday.
Several new companies are announced. One is to pur-
chase and work the most extensive collieries in Belgium ;
and another to construct a railway between Amsterdam
and the Helder, via Castricum and Alkmaar. The others
are of less importance.
The Lords Justices have upset the decision of Mr.
Commissioner Fane, who awarded a first class certificate
in bankruptcy to Mr. Mark Boyd. The certificate is to
be suspended five years, and then only to be of the
second class, while protection is only to commence on
the Ist of February next.
The Trade Reports from the provinces are satisfactory.

1220

BRITISH Fl
OFFIC;

9 per Cent.Coneols
Ditto for Account
8 perCente Reduced
3 per Cents
Long Annuities
Bonk Stock, 7 per Cent,

Oninium
Exch. 131118,20.
India Bonds,(1,0001.)

SHARES.

NDS. Closing Prises.
kL QUOTATIONS;
Mond. Tuead. Wed. Thurs. Friday
93i 931 1 931 1 931
91 93 g 931 193
93a 93 • 93( 1 981
" —I
"
318 2171

9:si
93i 4

I!3
2d 8p; 4
p) p
—r
1'
4
23 p

217 k

2 p
2p