The Sun.
London, England, 1830-05-17 00:00:00

MONEY MARKET.

(From the Times.)
It has been stated to-day (Saturday) in the city, on good
authority, that the balances of money at this moment lying un-
employed in the Bank of England do not amount to less than
7,000,0001. sterling A portion of these deposits must necessarily
belong to individuals, who, from the nature of their trade, do
not place them permanently there; but the greater part by far
is lodged in the Bank by private bankers, constituting a surplus
beyond what they require for daily purposes, and for which they
are unable to find any employment they at once think eligible
and secure. They would not, on any other supposition, forego
the profit to be derived from the use of it. This state of things
is the more remarkable, as the current quarter is that in which
the payments on account of dividends are smallest, and when any
such redundancy of unemployed capital is consequently less to be
calculated on than in the July and January quarters. It is a
subject of great interest among the thinking men in the city to
determine in what mode this surplus of capital will be brought
into employment. They hold it as an axiom in regard to the
transactions in money, that those who possess it will not suffer it
to lie permanently or long unproductive, and if channels cannot
be found at home for its distribution, it will seek employment in
foreign countries, either in a direct or an indirect way,—that is
either by remitting it in the ordinary way to be put out at inte.
rest, or by engaging in foreign loans, or joint stock companies
having relation to foreign objects. The great money transactions,
therefore, of the next twelve months can hardly fail, it is thought,
to present some remarkable peculiarities of the kind alluded to.
An opinion was hazarded, under this head, a few days ago,
that an intention was formed, on the part of Government, to pay
off the dissentients to the reduction of the 4. per Cents. out of
the funds derived from the purchase of Annuities under the new
Act, and some facts have since transpired which strongly corro-
borate that opinion, independently of the obvious propriety and
advantage to the public which attend such a mode of proceeding,
compared with the alternative of borrowing from the Bank, and
creating new issues of paper. It appears certain that since the
books for receiving the names of the dissentients closed at the
Bank, no money has been laid out in the purchase of stock by
the Commissioners under the new Annuity Act, who are
known, however, to have received very large sums, and are be-
lieved to have in hand a balance of near J 00,0001., accumulated
within the last fortnight, and independently of transfers of stock
for that purpose. This surplus has resulted in great measure
from a practice adopted by some of the great provincial banks,
of purchasing annuities from Government for short periods, sel-
dom more than 10 or 12 years, and which, according to the cal-
culations made, produce to them a better return than they could
obtain by any other mode. One great banking establishment is
said to have placed 150,0001. of its capital in this manner. There
have also occurred of late very extensive sales, by the Commis-
sioners for the reduction of the debt, from the stock invested on
account of the savings' banks, and which there is little doubt is
meant to add to the fund prepared for paying off the dissentients,
as it is known that the deposits in those institutions are, on the
whole, increasing. To the Government, and on mere money
considerations, the operation is, in either view of the case, a very
advantageous one. As the purchase of annuities is calculated
on the market value of Consols, which pay an interest equivalent
only to about 35i per cent., the gain to the Government, if the
extinction of the 4 per Cents. is made the basis of the calcula-
tion, is per cent., or per cent. if Government shall be un-
derstood to make the conversion, in theplace of the dissentients,
and become the possessor of a corresponding amount in the New
3.. per Cents.

t:OnsolsTave experienced a rise to.day of rather more than
per cent., the last price for the account being 92% to 76, which
is owing to some large purchases, founded on a report, rather
industriously circulated, that a portion of the surplus capital in
the Bank of England is to be employed by the Directors in mak-
ing investments in Government Securities. Very little reflection
is requisite to show the fallacy of such a report, inasmuch as it is
expressly at variance with the terms of the Bank Charter, which
forbid any dealing in stock on the part of that Corporation. It
is true that the Bank may purchase, because the accepted con-
struction of the term " dealing" is to buy and sell also; but to
lock up a large capital in such investments is so plainly contrary
to all just principles of banking, that it may be safely affirmed
that the Bank will sanction neither the one nor the other. The
rumour of the day seems, however, to have partly succeeded in
its object.

KINGS
THEATRE._..The Matrinzonio Re-
greto was repeated here on Saturday night, to the satis-
faction of a crowded house. LAHLACHE was received with
enthusiasm ; be is a fine bass singer and comic actor.
The Chairman of the Committee of Licensed
Victuallers of the city of London had an interview with
the CHANCELLOR. of the EXCHEQUER, at the Treasury, on
Saturday.
Au inquest was held on Saturday last, at the
Glengall Arms, Caber, on the body of the Rev. J. H.
BURCiff, who had shot himself there the preceding day.
After leainrisnagnietyv.i:l,e_ncre,iptlpieirry Fr
Jury returned
Press.rnedaverdict to the
effect that " the deceased committed suicide, being in a
state of l
A destructive fire took place yesterday morn-
ing at the residence of JOHN SMITH, Esq., St. Paul's
Cray, Kent ;,by which accident an old lady, named Davi.
EN' bet her life.