Northern Times.
Liverpool, Merseyside, England, 1857-12-26 00:00:00

MONETARI AND COMMERCIAL.

lavisrooL, Thursday Eveaing

Business affairs seem to brighten up. There
was a very slight demand for Money, and what is
much more satisfactory, the Bank Directors have
reduced their rate of discount by two per cent.,
the minimum rate being 8 per cant.
The Cotton Market was influenced by the
notification that the Bank had reduced its rate of
discount, and prices were fully maintained—
indeed holders demanded enhanced rates. The
sales were 8,000 bales; 2,000 on speculation and
for export. Messrs. Wright,,jun., and Co., in their
circular of this evening, make the following re-
marks :

The Niagara conveyed our lest circular advice', dated
18th instant. Immediately after her departure the cha-
racter of our Cotton Market completely changed. The
trade appeared in force and for quantity, and both specu-
lators and exporters were active competitors for the offering
stock, which was much curtailed by the unwillingness of
holders to submit to the rates then ruling. Regularity
was established, and something nearer an approximate
valne for different qualities again prevailed. The sales
were 10,000 bales, and the animation continued on Monday,
when 8,000 bales changed hands. Tuesday's business
amounted to 5,000, the improvement being fully supported.
On Wednesday the eagerness of buyers somewhat abated,
and samples were more freely at command, wile renewed
desire to progress, more particularly in the lower classes,
which, from their trashy nature, are still difficult to move.
To-day's operations are estimated at 8,000 bales, 3,000 to
speculators and exporters, prices closing steadily at id to
d advance since last Friday, the reduction of two per cent
en the Bank rate of discount inspiring fresh confidence,
though made known too late to have any important
influence on the transactions. The very favourable Bank
returns, and the continued influx of specie into this
country, as well as to many of the Continental cities, gives
rise to the opinion that money will shortly be available at
very low rites of interest, and so benefit trade, and this
has d eubtless stimulated the markets generally into greater
activity ; hut, in takieg a retrospective view, it must not
be lost sight of that the crippled condition of mostly all
engaged in the staple, and the influences that the heavy
decline in the raw material and manufactured article have
yet to exercise in foreign markets, is likely to engender a
degree of caution, and check the toe rapid expensing
which cheap money would otherwise control. To regain
past losses will be the aim of all, and risks will be e tutiously
entered upon, unless the inducenaente are encen-aging.
With the prospect of large supplies and 'accumulating
stocks it is more than probable that sales will be
made freely on arrival, particularly as, after the
wholesome lesso❑ acquired in the last two months,
bankers will look well: to the security before enlarging
their advances. The total sales of the week (five dug)
amount to 40,550 bales, of which 28,840 are American.
Speculators have taken 9,930, and Exporter: 4;070, leaving
26,550 bales of all kinds to the Trade. The import for
9111111 time is 27,857 bales, of which 22,562 are American.
The qusotity known to be at sea from American ports is
about 60,000 bales.

PRIM TO.DAT.

New Orleans Fair ..611 6d Ordinary.. 21d to 41d
Mobile • • 6.1,1 „ -41 to 411
Atlantic „ ..6id „ 51,t „ 3d to • 41d
Total talon forConslption, 1857, 1,860,820 bales. 1856, 2,144,510 bales.
,9 Export (actual) „ 245,786 „ „ 261,119 „
AmerizAn Brazil Egy -Alan E. India W. India Total
Stock this day.. 148,800 40,769 11 720 140.7.,0 2,080 387 110
Same time 1856 200,090 20,730 35.230 61,210 410 322,720
Messrs. Kershaw and Jardine, say :-
The slight improvement which was manifest in our
Market at the close of last week, was further increased by
the very favourable Bank Return of S durday, which
praducsd a feeling of confidence that a reduction in the
rate of discount must soon follow. Holders, cons-quently,
became indifferent sellers, many parcels being withdrawn
from the Mark.d, and a general advance of 1 per lb. was
established on that day ; since then, we have experienced
a mere active demand this for some weeks past, sal !Aces
have gradually hardened, resulting in a total advance of
about per lb. on middling, and id. en the more ordinary
denrip!,ions.
The Liverpool Share Market was very steady
to-day, with only a moderate businesa doing. Tho
following were the transactions :-Birkenhead,
Lancashire and Cheshire, 68; Blackburn, ;
Caledonian. 41; Eastern Counties, 11:; Lanca-
shire and Yorkshire, 931, 931; Do. one-
eighth shares, 15-16 d ; Manchester, Sheffield
and Lincolnshire, 93:. 931 93d ; Midlands, 891,89/ c,
89, S9l, 891, 89; North Eastern, 23:124, Devers,
20, 20:; Grand Trunk of Canada, 11-1 ; Great
Western of Canada, 19k; Bank of Liverpool, 211 ;
Liverpool and London Fire and Life, 71 p ; Royal
Insurance, 71p. The following were the closing
prices :-Blackburn, 9,1.; Chester and Bir-
kenhead, 671, 681; Caledonian, 41, 411; Chester
and Holyhead, 171, 171 ; Eastern Counties, 119-16,
1111-1 G ; East Lancashire, 91,92; Do. 9/. Shares,par,
p*;
.Great Northern, 24, xd 241; Do., A, 10, 101;
Great Western, 541, 55; Lancashire and Yorkshire
Stock, 93, 93: ; Do. 9/. shares, le, 4 p ; Liverpool,
Crosby, and Southport, 181, 181 ; London and
North Western Stock, 961 961 ; Manchester, Shef-
field, and Lincolnshire, 391.39-; Midland Stock, 89,
691 ; North British, 121, 121; North Staffordshire,
31, 3: d ; North Eastern-Berwick, 23k. 24; York
and North Midland, 411, 421; Leeds Capital
`-ltock, 26, 26; ; South Eastern, and Dover, 201, 20
15-16; Buffalo and Lake Huron, 61, 6 ; Do. New
Shares, 61, 6 ; Dutch Rhenish, ti, 4 d ; Great
Western of Canada, 191, 191; Do. new shares.
11 d ; Great Luxembourg, 71, 7 ; Grand Trunk
of Canada, 111, 111.
As we intimated above, the Bank reduced its
rate of discount to 8 per cent. this afternoon. For
a long time past unmistakeable symptoms of re-
turning ease have been apparent, aril the last two
weekly Returns issued from the Bank clearly
indicated an approaching change ; but the public
required and have now obtained a " material
guarantee" of the subsidence of the stringency
and pressure which, during the last few months,
have been attended with so much commercial
distress. Precisely the same ae in the United
States, there is now a prospect of discount
accommodation becoming very cheap, and the
competition between the moneyed interests will,
no doubt, occasion a further decline in its value
before the spring. The cause is obvious. Trade
is restricted in all directions, and for months to
come the cerritnerce of the country will require
a proportionally small amount of capital, and the
surplus will be sufficient to force the terms of in-
terest to a much easier point. A few weeks ago,
all were anxious to borrow, and few felt disposed
to lend ; the order of things, however, is now
reversed, and this will become more and more
apparent as the outstanding securities run off, and
credit revives. The step which the authorities
have taken this afteriloon will render commercial
paper more readily negociable, a disposition will be
shown to discount bills, but as merchants and
others are disinclined to extend operations until
affairs get more settled, money will be in excessive
supply. The alteration was generally expected, but
it nevertheless caused a very satisfactory feeling
among all classes, and it has led to the expectation
that the new year will be accompanied by a gradual
dispersion of the injurious effects of the crisis,
not only in this country but also in America and
on the Continent. While the rate of 10 per
cent. was maintained it proved that affairs were
still greatly deranged, that the bank could not yet
throw off the protection of the treasury letter, and,
finally, that their position was still one of great
difficulty, calling for the continuance of a restric•
tive line of policy, such as was never witnessed at
any previous period of modern financial history.
Now, however, an alleviation from these onerous,
and, it may be added, usurious conditions, having
been inaugurated, no one can any longer doubt
that the crisis has been surmounted. The London
Joint Stock Banks have reduced their rate of
interest on deposits to 6 and 61 per cent.
Many ?night have imagined that a reduction of
two per cent in the minimum would have caused
an immediate rise in the Funds, but, singularly
enough, the first effect was quite the reverse, the
quotations being heavy. The speculators had
" gone foi" the measure to the fullest extent, and
hence the temporary abaence of increased buoy_
ancy. Towards the close, however, several pur-
chases were made, which sent up prices to the
amount of 4 per cent. The Three per Cent
Consols for Acoeunt ox dividend were dealt in all
day at 934, 93t, at which price they officially
closed ; after offi..3ial hours they were quoted 931.
The New Three per C'311:3 were 931, 931, and 931,
and the Reduced 931, 931 933. India Bonds were
20s discount, Bank Stock 2181. Excheqaer Bills
were at 3s dis to is prem., and the Bonds 98,1.
The London. Railway Share Market has been
quiet, and a decline of about 1 to 6 per Cent. has