The Press.
London, England, 1858-07-17 00:00:00

694

fallen to 9,938,0001. The Directors, we apprehend, are
watching this item with care, though a large reduction in
it is always to be expected during the payment of the
dividends. The Private Securities have declined to
15,600,0002., and they will probably undergo a further
diminution before the next return is published. Most of
the other changes, such as the heavy decrease in the
Public Deposits and the large addition to the other
deposits, are due to the payment of the July dividends ;
but the return, as a whole, is not calculated to increase
confidence in the permanency of the existing charges for
discounts.

The Money Market is in a very easy condition. With sup-
plies become exceedingly ample by the dispersion of nume-
rous dividend payments, and a total absence of all demand,
except for the military purposes of commerce, rates have
manifested a partially declining tendency. The best paper,
for example, has been discounted below two and a half per
cent., though the nominal average remains at front two and
a hall to two and three quarters per cent. ; and there is a
perceptible willingness to take long bills at from three to
three and a half per cent. The only irregularity or varia-
tion in the demand that has occurred during the week
arose from the repayment to the Bank of advances made
during the shutting, for which Wednesday was the last
day. This was arranged without the slightest difficulty,
and the market appears likely to remain in the state we
have described until the period arrives for preparing
to meet the commercial requirements at the end
of the month. But even these requirements
are likely to affect the supplies only to a comparatively
limited extent, as the practice of making bills payable on
special days at the end and beginning of the month is
gradually changing. There will, perhaps, always be a
practice of drawing bills to arrive at maturity on the 4th,
as custom is all-powerful in many branches of commerce ;
but we apprehend that henceforward there will be less
general pressure than has been usual at that period by the
substitution of other dates, which many business houses
are now making. By this means a good deal of push and
inconvenience will certainly be avoided, while the tendency
must obviously be to impart uniformity to the demand.
We repeat our conviction, however, that money is not
likely to be cheaper than it now is. The Bank, which
leads the market, is, as shown above, still parting with
bullion for export. If, as is not impossible, this process
be continued for two or three weeks longer, the question
must engage attention whether the exchanges ought not
to be acted upon, with a view to arrest the drain. And at
the same time the wants of trade are, from most of the
symptoms that we have observed, likely to enlarge. Either
of these incidents will be sufficient to maintain existing
terms; but, when combined, of which there is much pro-
bability, it will be difficult to resist the natural tendency of
the market under such circumstances.

Considerable importance attaches to the specie move-
ments of the week, arising from the constancy and the
magnitude of the continental demand for gold. This de-
mand, in the absence of arrivals, has led to the with-
drawal from the Bank of about 210,0001. since our last,
exclusive of the purchase of 125,0001. sent from Russia.
During the last two or three weeks about 400,0001. per
week have been purchased for the Continent; and from all
that we hear, the orders in hand are still considerable,
though the time for executing them is discretionary within
a limited period. Against this absorption the actual
arrivals during the week have been less than 17,0001.; but
the Royal Charter is at hand with 405,3281. and the Teviot
with 138,1081., and there is an expectation that the Persia,
due to-morrow, will bring some amount from the United
States. More than half a million will thus be placed in
the market; and it is quite possible that it may, tem-
porarily, at least, arrest the drain upon the Bank.
In the early part of the week the tendency of Public
Securities was unfavourable, and a decided reduction was
established compared with the quotations in our last. The
fall was owing to a combination of circumstances of a tem-
porary character. In the first place, the public manifested
no disposition to effect investments, notwithstanding the
ample supplies of unemployed capital; and their apathy
discouraged merely speculative operations. Simulta-
neously with this state of things rumours of various loans
obtained circulation, and efforts were made in certain
quarters, of no mean influence, to discredit the repeated
smelliness of the Government that our relations with
France are of the most friendly character. Even the in-
vitatioa of the French Emperor to the Queen to pay •
visit at Cherbourg was perverted into a means of creating
distrust as to the sincerity of our great ally. Unfavourable
news was also received from India. These incidents satis-
factorily account for the temporary decline in the Funds.
We say " temporary," because a reaction set in yesterday
when they were at the lowest point, and a partial re-
covery has now been established. This is attributable to
large reinvestments on trust account and to steady buying
by the public, who came in at the lowest prices of the
week, thus deriving an unintended advantage from the
artificial fall. Railway Shares have further rallied to the
extent of between one and two per cent. This advance has
been mainly owin; to improving traffic receipts, and to an
expectation that the forthcoming dividends will not, after
all, prove so indifferent as was originally anticipated.
Console, which left off this day week at 951 to 1, began
to fall on Monday, and on Wednesday they had descended,
owing to the circumstances indicated above, to 95 to 1.
Yesterday they opened flat at this reduced quotation, but
heavy purchases by influential parties changed the entire
tone of the market, and they left off at 951 to 1, after
touching 951. This forenoon there were alternate buyers
and sellers at 951, and after a fair day of business they left
off at 951 to 1.
In the course of the week further purchases of Reduced
and of New Three per Cents. have been made on the public
account. The latter stock touched 96 this morning.
Very little change has occurred in the Foreign Market,
but the general tendency has been upward. The pinci-
pal dealings have been in Brazilian, Peruvian, and Turkish
Stocks.