The Northern Daily Times.
Liverpool, Merseyside, England, 1856-10-02 00:00:00

MONETARY AND COMMERCIAL,

LIVERPOOL, WEDNESDAY EVENING.
The Bank of England has raised its rate of dis-
count to 5 per cent. The announcement came
upon the commercial public rather unexpectedly
today, inasmuch as the usual day for the Bank
Directors to meet is Thursday, and not as in this
case. In some quarters fears are entertained that
at the usual meeting to-morrow there may be
another advance, and that the minimum rate will
be fixed at s+, per cent. The immediate effect of

this increased stringency in discount accom-
modation, and the high rate of interest charged,
will put a stop to speculative dealings in most
departments of trade. Added to the fact of the
rise in the rate of interest, the commercial
classes do not like the aspect of affairs on the
Continent, the bold and defiant tone of the

Czar of Russia's protest upon the Neapolitan ques-

tion, and the peculiar poition of monetary attlirs

in Paris, almost amounting to a crisis. Looking
at the matter in'every point of view, the Directors
of the Bank of England could not avoid the step

which they have taken. Indeed, in some quarters,
the extreme cause of raising the rate to 5

per cent would be regarded with favour.
Already the rate of money in Lombard-street
is in most instances up to 5 per cent, even on the
best descriptions of paper, and all hope of an
early improvement in the state of our monetary
affairs is for the present abaoloned. This remark
applicable to th., Continent as well as to the
United Kingdom. In ,)pinion it will require

much caution and extrume vigilance to avert a
"crisis" during the coming winter, but if mer-
chants and importers exercise due. care, and regu-

late their dealim4s according to the circumstances
of the hour, nothing very serious in the way of
failures will take place. Among the more

prominent causes which have -led to our
present monetary position, may be enumerated
the specie speculation—the amount employed in
increased trade— and the capital sunk a few months
since in providing the deposits and subsequent
shares of Joint-Stock Companies, fostered under
the new Limited Liability Bill. The Globe of this
evening, in noticing the rise of the rate of interest

by the Bank of England, says :--The condition of
the Money Market yesterday, illustrates in a lively
manner the condition of our commerce. The
market opened heavily with falling prices, the men
of the City looking towards France with its
continued monetary panic, towards Russia with its
threatening language. Edt the market recovered
when the City men looked to the returns of our

own• revenue, and surveyed the genuine and sub•
stantial part of our own commerce. So that,
notwithstanding the anticipated rise of interest
at the bank to-morrow, notwithstanding the
pressure of men at the bank doors anxious to
obtain discounts at the existing rate, the prices of
Consols rallied to a quotation not less than one
per cent. above the lowest point yesterday. The
raising of the discount by the Bank to-morrew is
anticipated as the natural consequence of the
raising of discount by the Bank of France to 0 per
cent. It is in fact rendered necessary by the
rapid expansion of monetary obligations, by the
ultimate effects of the war expenditure, and by the
extensive speculation in shares ; for, although the
war has now ceased, although joint-stock specula-
tions during the past month appear to have been
limited to the comparatively small sum of
600,0001. aggregate capital, and to strictly national
objects, the general state of our Money Market is
brought about by causes which have been long in

operation.
The present state of the Money Market has had
the effect of causing a somewhat dull feeling in
our Cotton Market. Nevertheless, holders do not
see any cause to abate the full rate established in
the'early part of the week. This afternoon our
market closed with firmness, but the demand was
dull. The day's sales reached 8,000 bales. Of this
quantity speculators took 1,000. Since Thursday
the total sales have amounted to 43;000 bales, of
which 10,000 are put down to the account of
speculators, and 7,000 for export, leaving to the
trade 31,000. The import in the same period
' reaches 15,000 bales only ; some floating cargoes
will soon be delivered.
Before the announcement of the advance in the
rate of interest, already alluded to, there was a
pretty cheerful feeling on our Stock Exchange,
and business opened at the closing prices of yes-
terday. The dealings were chiefly in Lancashire
and Yorkshire, and Midland Stocks. The former
was first done at 951, 968, and 96. At this point
' a decline set in, and 958, i, were the next quota-
tions. Subsequently the Bank decision " caused
a further decline, and the following prices were
paid : closing tamely at 05;-1, Z. Midlands
opened at 76d, rose to 77, and 771, then receded to
the first quotation, and afterwards were done at 761
fi, 8, A,3, K,3, they again rallied to 76;1-, and were last
done at 761 closing at 708 buyer, and 761 sellers.
There was hot much doing in London and North
Western Stock, and no. fluctuation took place in
price, sales being marked at 101/ only. The other
sales reported were Eastern Counties, 9 ; East Lanca-
shire, 20*; Great Western, 641 65/ ; Manchester,
Sheffield, and Lincoln, 32i, 1„, t, 2; North British,
9 5-16: South Eastern and Dover, 20,1 ; Caledo-
nian, 272. From the foregoing remarks it
will be perceived that the market gradually
tended down towards the close, at which time
prices stood as follows :—Aberdeen, 13 131.
Chester and Birkenhead, 151 151. Caledonian, 27
5-16 27 7-16. Chester and Holyhead, 16 16/.
Eastern Counties, 8 15-16 9 1-16. East Lancashire,
20 201,-. Great Northern, 23Z 23a. Do. A, 10 tn.
Great Western, 64 644. Lancashire and Yorkshire
Stock. 95995 a. Liverpool, Crosby, and Southport,
18k 181 London and North Western Stock, 1018

10218. -Manchester, Sheffield. and Lincoln, 32 321.
Midland Stock, Ma MI. North British, 01 9;3-7.
North Staffordshire, 51 51. South Eastern and
Dover, 20.1 201. York, Newcastle, and Berwick,
l9i 20. York and North Midland, 27i 27i. Leeds
Capital Stock, in 17i. Buff do and Lake Huron,
I, id. Dutch Rhenish, ld 1-4 p. Great Western
of Canada, 22 xd 221. Do. new shares, 11 xd
Great Luxembourg, 11.1 I hl.

In consequence of the rise in the rate of dis-
count, says the Express of last night, the Funds,
which had attained a further advance of 4 per cent.,
have relapsed to the closing quotations of yesterday.
English railway stocks, which had previously
exhibited a general and decided recovery, have also
given way. Consols for money and the Bth Octo-
ber, after rising to 921 to 93. have receded to 92 to
fi The New Two-and-a-Half per Cents. aro marked
77 ; Exchequer Bills, 8s to 12s prem , being better;
Exchequer Bonds, 19-1 to N. being lower; and India
Bonds, lOs to 14s prem. Turkish Six per Cents.
were first marked 100, and are now quoted 991 to Q.The Guaranteed Four per Cents. are called 1001
to t. The transactions in other foreign securities
have been unusually limited, comprising only
Brazilian Old Five per Cent. Small Bonds, at 100
ex div. ; Dutch Two-and-a-Half per Cents. at 64
(exch. 1211.); do., Four per Cents. Certifs., at 951
and 951 ex div.; Russian Four-and-a-Half per
Cents. at 96; and Spanish New Deferred Three
per Cents. for the 17th October, at 24.
The London Railway Share Market opened this
morning at a decided recovery, many of the leading
cent.Aofthereaction,
however,
set
rise in the
o 1
Bank rate of discount; and the best prices of the
stocks
i upon rising t
t announcementper
day were no longer maintained.
We have not any new feature to notice in the
grain trade. Mark-lane was thinly attended to-
day ; the trade ruled dull, but prices were without
any change of moment. We perceive, by our Hull
circulars, that the trade in that quarter is firm, and
prices are upon the advance.
The Liverpool and London foreign and colonial
produce markets are steady, but the transactions
going?an in all articles are limited, and prices are
rather lower.
By advices from Berlin we learn that the mone-
tary crisis which is at present agitating financial
circles on the Continent has caused the idea of
changing the standard of metallic currency through-
out the German States of the Zollverein, from
silver to gold, to be received with more favour
than hitherto. It is said that this proposition
has already been laid before the monetary commis-
sion at Vienna, but that they see great difficulties
in the way of its adoption. The fluctuations in
the value of silver and paper money are becom-
ing more complicated ; and some measure for
the regulation of the question is looked
for from
the government. The Minister of
Commerce has
refused the demand recently made
by a deputation
of the mercantile community of B • erlm to advance
one million thalers to tile Bank; but for the pur-
pose of remed • pug the critical situation of the
F Money Market, he has
charged the Royal Maritime