The Sun.
London, England, 1839-11-12 00:00:00

'VP:NINO- EDITION.

ZY MARK ET and CITY NE WS

(MONDAY EVENING.)
'IES.—The opinion gains ground in the City that
,lief is about to be offered from the Treasury to
holders of Exchequer bills, in the shape of an ad-
in the rate of interest, but at present the only
ground for it appears to be the trifling rise which has oc-
curred in them. They are all most indignant at the
trick practised upon them early in the year, now at-
tributed unhesitatingly to a collusion with *he Bank,
in bringing. 'about the renewal of the whole of the
floating debt, on most favourable terms, and con-
triving at the same time to extend the period at
which they should become payable for duties. They
do not expect the same interest from them as from
I the best mercantile paper, but contend that a certain
ratio, as was invariably the case formerly, should be
preserved between them. When those now cur-
rent were issued, the terms of the Bank were 34 or 4 per
cent ; the merchants and bankers scarcely so high.
Now 6 per cent is the lowest, and money not easily ob-
tained at that rate, /et Exchequer Bills yield little
more than 2i per cent., and yet the holders are com-
pelled to keep them because they have become of late,
in large amounts, almost unsaleable. Their great value
and utility heretofore has been their easy convertibility
at any time, and the remedy afforded, in cases of sudden
pressure, of payment for duties. All this is gone, and
the outcry is general against the Treasury in this
matter as guilty of a positive breach of contract. The
new Chancellor of the Exchequer, when he comes fairly
into this part of his duties, must either change his
system or abandon the thought of sustaining a large
floating debt.

CHRONICLE.—It has been said, with reference
to the statement of the affairs of the United States
Bank, " that the questionable securities must be of an
enormous amount, when it is considered that the vali-
dity of a great proportion of them must have been
mainly dependent on the continuance of that support
from the United States Bank which the situation of its
affairs will no longer permit." We anticipated this
argument on Saturday by observing, " that if an attempt
were made to bring them to market at present, a serious
defalcation in all probability would ensue ; but the sus-
pension of specie payments will enable the Bank to retain
those securities, so as to turn them to the best account."
It is useless, however, to indulge is suppositions,
either with regard to the 17,782,317 dollars " Stock
Accounts," or the 35,781,648 dollars bills. Different
interests will take different views on this subject. It
is important, however, to remark, in regard to the
Stock Accounts," that a considerable proportion of
Thee Securities was deposited by various parties with
the Bank, for advances made upon them, and that they
are only stated at the amount actually lent ; therefore, '
even supposing that they could not be realized without
a defalcation, yet they stand with a large margin to
guard the Bank against loss. The Bank will be more
able now to support the parties to whom those loans
were made than it was previous to the suspension
of cash payments, instead of being less able to
continue that assistance, and will have it far
more in its power to allow a reasonable time
and accommodation to the merchants to re-
tire their discounts. The change of position is
thus all in favour of the foreign creditor, and, were we
given to prophecy, would strongly induce us to " pre-
dict a favourable result." Some parties imagine that
there has been a concealment of the affairs of the Bank
in question, and the Times also " alludes to the long
silence sustained on the subject." We understand that
the vnonthly returns are officially submitted to the Legis-
lature, which are published during the sittings of that
body, but not during vacation. The returns are, how-
ever, regularly furnished every month throughout the
year, and are open at all times to the public for inspec-
tion, when the Legislature is not sitting.
The Morning Post carries its demands for publicity
to the greatest extreme, insisting on a detailed account
of "the names of the drawers, acceptors, and indorsers
of the larger bills, the dates at which they are drawn, and
the periods they have to run." This we apprehend
I would be not only a bulky, but a very useless docu-
ment ; and not one in a thousand on this side of the
water would be the wiser for it.

HERA LD.—A strong impression has prevailed to-
day that the late heavy discount upon Exchequer bills
will shortly induce the Chancellor of the Exchequer to
raise the rate of interest from 2d. and lid. per diem on
all classes to 2d. In consequence Exchequer bills,
which left off at 12 a 8 dis. on Saturday, have advanced
to 6 a 5 dis.; whilst India Bonds have advanced from
12 alO dis. If it turns out that the interest upon
Exchequer bills is raised to 2d. per diem it will have an
important influence upon their market value. There
cannot be any doubt but the heavy depreciation in
the premium upon Exchequer bills has given our im-
porting merchants lately a great opportunity of pay-
ing their duties in Government paper to much ad-
vantage. But although the operation on the part of
the merchant is perfectly fair because it withdraws a
certain' portion of the floating debt from circulation,
nevertheless, to a Chancellor of the Exchequer of the
present day it is a very ugly operation, inasmuch as
iue rate of discount with even the rate of interest at
id per diem, would deter capitalists from any desire
to encourage a funding at the current rate of Consols.
The advance of id per diem in the interest upon Ex-
chequer Bills will cause them to be more sought for as
an investment ; but, urder the existing relations be-
tween the monetary and commercial interests of this
country with the continent of Europe and that of Ame-
rica, id per 'diem per cent. will do but little towards
bolstering the premium upon the floating debt.

SUN.—The state of commercial credit in the City is
improving ; in fact, the effect of the late unfavourable
news from the United States has altogether disappeared,
and though some of our Contemporaries talk very
londly of the bankruptcy of the United States Bank,
thus: interested in the American trade fear not that
it will be able fully to meet its engagements in due
time, and that it will still hold its position among the
institutions of the American Republic. Business is
improving in the City, and a very considerable amount
of East India, West India, Mauritius, and other pro-
duce, is announced for sale this week. The merchants
only require money, to be more easy, to induce specu-
lation in produce of all kinds. The Tea trade is still
brisk, but the clearances last week were rather under
those of previous weeks. Baltic produce is on the rise,
the deliveries last week being rather extensive,
The Funds left off pretty firmly this afternoon at
90i -' for Money, and at 904 for the Account. The
value of Exchequer Bills is now Gs. discount ; and of
India Bonds lOs. discount , India Stock closed at an
cuprovement of 1 per cent. on Saturday's value.
The unfavourable effect produced by the news from
Lisb in was only partly removed up to the termination
of business this afternoon. The Five per Cent. Stock
( Portuguest.) lett off at 32 to 32k, and the Three per
Cents. at 223 i ; Spanish Stock closed at 9.71 l-, ;
Dutch at 52i for the Two-and-a-half per Cents., and
at 98 99 for the Five per Cents. ; Belgian Bonds
have risen to 10s.
The Share Market has been brisk this afternoon.
The principal Railway Shares all look better. London
and Birmingham have risen to 50 premium ; North
Midland to 7 discount ; Great North of England to 25
a :,count ; Great Western New 24- discount ; and
Nanchester and Leeds to 6i 7 premium.
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