The Express.
London, England, 1853-09-30 00:00:00

MONEY MARKET.

TUC RIIIILT Evasino.
The Bank of England directors, at their weekly
board meeting to-day, decided upon making a far-

ther advance of i per cent. in their minimum die-
count rate, which now stands at 5 per cent. We

hare so frequently drawn attention to the upward
tendency of the money market, that the public could
not have been wholly unprepared for this measure.
Still, that the decision should be taken at the present
moment, when the al= of gold has waited for the
_ _ _

present, at !cut), when large arrivals of the precious

metal from Ansiislis must have the inevitable effect
of relieving, pro tante), the pressure of the money

market, and when the trading oommnnity throughout
the country is engaged in endeavouring to effect a
contraction of out-standing engagements, is certainly
regarded with a feeling of surprise in most quarters.
So general was the feeling that no such step would be
decided on at to-day's board, that prior to the an-
nouncement throughout the morning prices in every
department of the Stock Exchange were marked by
quite a feverish rise, buyers bidding against each
other with the utmost eagerness. The disappoint-
ment amongst holders and "bulls" of stock was the
greater, *Wag ta the Bank having, within the Lint
few days, taken a step in apparently the other direc-
tion, in announcing their readiaess to advance money

on government stock at 4 per cent. during the shutting
of the books. It had not been overlooked, however, by
cautions parties that sales of government stock have
for some days past been continued by the broker
who usually acts for the Bank. Reference is now
also made more prominently to tho-fact—which at-

tracted some notice at the time—that the Bank
broker was a seller of stock on the sine produced by
this last-mentioned announcement on Friday last.

In making this further rise in the rate of discount,
we presume the Bank is only acting prudently, but
as the accounts on which their decision was founded
wilinot be made public for a week, we must for that
length of time be in doubt at least about the real
advisability of this last rise. It is notorious
(and during the lest few days we have re-
pettedly stated) that the rates of discount charged
by other leading dealers in money have for
some time past been above the Bank of England
terms, and we understand the decision adopted this
morning was mainly due to the fact that some of the
chief discounters had sent into the Bank a large mass

of commercial paper—stated to amount G some
700,0001.—0 n which they had already given accom-
modation to their customers. Looking to the probable
consequences of the present position of the money
market, as affecting trade generally, we regret
to observe that the prospect is the reverse
of re-assuring. Discounters have of late been rather
severely " hit" by the gradual rise in the rates of
discount, each successive step catching them in the
position of holders of a large mass of bills discounted
at the previous lower rates, and upon which in many
cases a loss instead of a profit is made. We thus find
that the dealers in money have, of late, to protect
themselves against any further rise, exacted on ordi-
nary and good commercial paper rates much higher
than those of the Bank, especially on long-dated bills.
There can be no doubt a great deal of discount business
has istely been done between 5 and 6 per cent, aid
upwards. It will, therefore, be perceived that this fresh
rise in the Bank rate will be more sensibly felt, and it
is almost needless to point out that the rates of dis-
count will now stand at a point at which a large
class of legitimate trading operations may be greatly
checked. In fact, the accounts from the manufac-
turing districts already agree in stating. that trade
is beiug sensibly checked by the increasing dearness
of money. In referring to this part of the subject
attention may be usefully directed to the un-
favourable complexion of the accounts from the
Australian markets. As we had forewarned our
readers, the advice!, now to hand speak of falling
prices, and a glut of many articles of produce, and,
in view of the absence or enormous cost of warehouse

room in the large ports, which in a measure compels
importers to realise at the prices of the day, there is
but too much ground for the apprehension that the
late speculative expansion of this trade will yet lead
to a good
.deal of commercial embarrassment, the
more especially when it i 4 recollected that, down to
last week, the shipments of goods from this side to
Australia were carried on with undiminished

rapidity.
The Lombard-street discount houses this afternoon
announced their intention of raising their rate for
money on call to 4 per cent. It is almost needless
to mention that the rise in the Bank rate is fully
responded to " out of doors." Notice was also issued
this afternoon that the London and County Bank
has raised its rate for outstanding loans on stock,
dating from to-morrow, to 5f per cent., being a rise
of 1 per cent. on the rate previously charged.
The English stock market has again undergone
considerable fluctuation. Consols opened rather
flatly, at 91/ to 92 for account, the market being
unfavourablyinfluenced by the decline on the Paris
Bourse yesterday afternoon; but symptoms of im-
provement soon became observable, and, on consider-
able influential buying, coupled with the report that
telegraphic news of a favourable tendency had been
received from Vienna, a steady rise to 934 took
place. On the unexpected announcement of the rise
in the Bank rate of discount, a rapid fall to 92 to 1
ensued, but the closing official quotation was rather
better again, at 921 to I, both for money and the
13th October. The latest non-official price was 921
to 1 for time, but at this range the market did not seem
strong. It will be seen that the effect of the Bank
step on prices was singularly small, quotations ac-
tually closing 1 per cent. higher than yesterday.
The official business report includes :—Three per
Cent. Consols, for money, 92, 1, 911, 934, 1, 92, f
ditto for account, 13th October, 911, 931, 1, 94,
4. India Stock, 243. Bank stock, for se-
count, 216.
Singularly enough, the Exchequer Bill market
was better this afternoon. The transactions ranged
from 15s. to Bs. die., and the closing quotation was
13s. tIS Bs. die. India Bonds ruled at 10s. to 4s. die.
The Foreign Stock market was buoyant in the
morning, most descriptions being quoted at an ad-
meseoncluding Russian, Spanish, Dutch, Sardi-
nia% and Peruvian. In the afternoon the feeling
was weaker, but the recovery in prices was not
fully lost, Peruvian finally leaving off 1 per cent.,
and Spanish Deferred I per cent. better than yes-
terday. At four o'clock Mexican Bonds were quoted
234 to 1; Spanish Deferred, 211 to 221; the Com-
mittee's Certificates, 5 to 6 per cent. Peruvian
Four-and-a-Half per Cents., 71 to 73. Granada
Deterred, 8 to 81; ditto Active, 20 to 22.
Peruvian Deferred, 50 to 52. The list of sales
includes :—Brazilian Old Five per Cent. Bonds,
100. Danish Five per Cents., 100, 1021.
Dutch Two-and-a-Half per Cents., 621, 62 ;
ditto Four per Cent. Certificates, 96, 97. Equador
Bonds, 41. Granada Deferred, 81, 81. Mexican
Three per Cents. 231; ditto for account, 14th Oct.,
231, 23, 231. Peruvian Four-and-a-Half per Cents.,
71, 73; ditto for account, 72. Portuguese Four
per Cents., for account, 411. 'torsion Five per
Cents., 111, 1141, 112 i ; ditto Four-and-a-Half per
Cents., 951, 961. Spanish New Deferred Three
per Cents., 22k.
There is no revival of tho demand for gold for the
continent. Of the large arrivals of Australian gold
this week it is thought at present that nearly the
entire will be presented for purchase to the Bank of
England. Large amounts will probably be sent into
theinstitution on Saturday and Monday, as several
of these vessels have already arrived in the Thames.
The Oriental has just arrived from Sydney. She
sailed so far back as the 9th of May, and is not
known to have any gold on board.
A dividend of 6s. per sharo for the first six
months of 1853 falls payulale on the sham) of the