The Express.
London, England, 1867-09-16 00:00:00

MONEY MARKET.-(THIS DAY.)

Ora &Mom

There is an increase of business in the Stuck
Exchange to-day, and the general tendency of
prices is upwards, owing to the super.
abundance of money, the satisfactory state
of continental politics, land the fine weather.
The transactions consist almost entirely of pin-
chases, and, though chiefly speculative, comprise
many bona file investments. Consols have im-
proved 1-16 to percent., and are now only a frac-
tion below 95, at which price, on two or three recent
occasions large amounts of stock were sold, thereby
causing a reaction. It remains to be seen whether,
with the present large supplies of money, they
will now go beyond that figure. Home railway
stocks have again advanced, and foreign bonds
show firmness.

The discount market is quiet, with few transac-
tions, and the rate for good bills is quoted 11 to 1;;,
' per cent., though some business is reported below
that figure. Short loans are offered in the Stock
Exchange at 1 per cent., but without finding takers.
Console are quoted 941 to for money, and
94/ for the Bth Oct. The Three per Cents.
Reduced and New Three per Cents. are / per
cent. better, at 931 to 1, ex div.
The demand for British railway stocks continues
and prices have further improved. Midland has
advanced # per cent. ; South Eastern and Great
Northern (original), 1 ; London and North
Western, # ; Metropolitan, Great Northern A, and
Brighton, , and Great Eastern, and London,
Chatham, and Dover, 1. Metropolitan, 126 to 1- ;
Great Western, tsi to 49, ex div. ; London and
North Western, 115/ to # • Midland, 1221 to 3 ;
Lancashire and Yorkshire, 1271 to 128 ; Cale-
donian, 1091 to 1101 ; South Eastern, 691 to
701 ; Great Eastern, 31 to ; Great Northern,
1121 to 1131 ; ditto A, 1191 to 1201 ; London,
Chatham, and Dover, 18„ to ; North British,
331 to 34 ; and Brighton, 521 to 53.
Foreign stocks are in request. Turkish of 1865
have improved # per cent., viz., to 321 to 1.
Spanish Passive and Italian of 1861 are
/ per cent. higher, at 20j to I and 49 to 1,
respectively. Turkish of 1862 are called 60 to
61 ; Greek, 14 to 1 ; Spanish Certificates, mg
to ; Chilian scrip, Ito 01 dis. ; Egyptian, 1864,
861 to I ; and Mexican, 15„ to 1.

United States 5-20 Bonds and Illinois Central
Railway shares have risen 1. to per cent., the
present prices being 73g to I, and 771 to re-
spectively, but Erie are without change, at 44i
to 451.

Anglo-American Telegraph shares are steady at
161 to lik ; and Atlantic Telegraph Eight per
Cent. Preference at 4 to i.

Bank shares are offered, and exhibit flatness.
London and Westminster have declined IL, viz.,
to 67 to 69 ; and London and Comity 10s., to 54 to
55. Union of London are quoted 38 to 37, being
dull ; Chartered Mercantile of India, 30 to 31 ;
Alliance, to 9} dis. ; and Imperial Ottoman, 1
to I dis.

As regards financial shares International Fi-
nancial and General Credit are 2s. 6d. to 6s.
better, at 1; to 1„ dis. London are unaltered, at
23 to 21 dia. ; and Credit Foncier, at 6} to 61 dis.
The report of the directors of the Crystal Palace
District Gaa Company states the available balance
at 5,4201., and recommends dividends at the rate
of 6, 10, and 7 per cent. per annum, on the prefe-
rence, original, and ordinary capitals respectively,
all free from income tax.

The fourth ordinary meeting of the St. Thomas
Floating Dock Company will be held on the 30th
inst.

The more pacific appearance of continental poll.
tics is now allowing the enormous accumulation of
money to produce its natural effect in stimulating
a demand for stocks of a bond Me character, while
speculative securities are at the memo time benefited
in price by the indications presented on every side
that bankers and other holders of money are
looking anxiously for the means of employing it.
It will probably be chiefly through the operations
of bankers that the vast mama of unemployed money
will ultimately be diffused, and the long looked
for stimulus given to prices in the Stock Exchange.
We are in the habit of speaking vaguely about the
influence or force of money as tending to stimulate
speculation, and this is doubtless the precise way
in which that force will make itself felt. Bankers
can no longer employ their enormous funds
in commercial channels, strictly so termed,
for trade is dull, and the supply of mercantile bills
unusually limited. Yet bankers are loth to refuse
money offered to them ; for, if they turn away cus-
tomers now, they may lose them altogether, to the
proportionate benefit, perhaps, of rival establish-
ments. Granting, then, that bankers must still
continue to take in and allow interest upon depo-
sits, and that there is no adequate employment for
these funds in mercantile channels, it follows,
almost as a necessity, that they must give increased
facilities to speculation, in the form of advances
upon Stock Exchange securities. During the last
few weeks advances to • considerable amount have
been made by bankers to speculators for a rise upon
the security of Consols, home railway stocks
and foreign bonds, and, if we may judge
from past experience, this is only an instal-
ment of what will be witnessed in the
future. The prices of bank shares—even of some
of the best accredited institutions—have been
steadily declining during the last two or three
weeks, and the Bank of England itself has only
been able to show a dividend at the rate of 9 per
cent. per annum, being 4 percent. per annum less
than that declared at this time last year. A fall
in banking profits seems to be impending, and it
doubtless requires a great deal of moral courage on
the part of bank directors and managers to view
calmly a depreciation in the market value of their
shares, and the consequent discontent of their pro-
prietors, who are ever ready to raise clamours if
their dividends are reduced. There will thus be a
strong temptation in banking circles to depart to a
greater or less extent from a jog-trot course, and
the inducement will be powerful to make advances
on speculative securities. A considerable period
will doubtless elapse, in the present cautious
temper of the public mind, before this tendency
can acquire any really mischievous development ;
but it is as well that we should look forward and
recognise the inevitable tendency of the movements
now in progress.
An instalment of 7f., making 641. paid, fell due
on Saturday on the Chilian Loan for 2,000,000/0
brought forward in January last.
About 56,000 f. in bar gold was sent into the Bank
on Saturday.

Advice's from Coventry announce the failure of
several small firma in the silk trade, owing to the
stoppage of Messrs. Peters and Warburton, already
referred to.

The tr►fc return of the Great Western Railway
of Canada, for the week ending the 30th ult., shows
an increase of 3,0291. over the corresponding period
of 1866.