The Sun.
London, England, 1837-09-08 00:00:00

1-as been the result of that individual's career. His frst
alt on reaching Hanover was to direct an entire revoiu-
ti )o in the Constitution of that county. He has attempted
to repeal that Constitution, but he has been checked by
the firmness of the people.—(Hcar, hear.) I ask )ou
what is your opinion with regard to the party with whom
he was wont to act in this country ? We are told that
be has not acted in this way by the advice of any ramp of
authority in this cc.intry..but be this as it my, I eboll say
this much regarding hint, what, a glgt:t Inticr t 4 slis! Ttitt
pill 'int:a Initi.ft" He rook' not holli 6414 that
party with hntat he acted aro only rattahl'ed from OP. opan
deffio'nttration in repealing that last Olarter of sto, pelitied
privileges, the Reform Bill, b' tli fear of
pitch which they could h6t flay the fesitg, of the people
of this country :" aftd -fr
it Is only by 'arousing to a
:,,cling steady to your
colours,
fromend showing
bold I:iont, that you may bop
t() restrain the Tories from
ttl, and by prev(tutip.- such an assault on your fiber..
Enrol from that headlong eareo :t1
%V they oiro
. t- -,.-occeiled during the two b.st •Sassivt, of'
Parlta.;-ocut Now,: I would say to you, continue to din
11--
ears of the House of Lords your respectful, hut
r -
.nu), demands for all those improvements, and the extjn.
sion of those civil rights and privileges which yor possess,
to the Sister Kingdom of Ireland. I cannot doubt . but.
such a course as 1 have stated, if genemlly pursued.,, will
effect that which we anxiously desire—reconciliation between
the two Houses of Parliament, to such an extent .as .will
enable them to act together in concert for the good UT the
country. The lion. Gentleman resumed his seat amidst
loud and reiterated cheers,

REDUCTION OF INTEREST BY THE
BANK.

We stated yesterday that the Bank of England reduced
the rate of interest from five to four per cent., pursuant to
the following notice :
NOTICE POSTED UP AT THE BANK TO LEND
MONEY AT FOUR PER CENT.

" The Governor and Company of the Br.,k of England do
hereby give notice, that on and after the ith instant, they will
be ready to receive applications for loans, upon the deposit of
approved Bills of Exchange, not having more than six months
to run; such loans to be repid on or before the 20th October
next, w ith interest at the rate of 4/. per cent, per annum, and
to be for loans of not less than 2,0001. each.
" Bank of England, ith September."
The following are the opinions of the Morning Papers
on the subject. For our own part we certainly coincide
with th. reasons assigned by the Morning Post
_ _

The commercial classes arc to nave the assistance from the
Bmk of England that they Ave been accustomed to have,
and the rate of interest at which that assistance is to be gi%en
will, for the present, be four per cent. only. Is coming to
this arrangement, we have no doubt that the motives of the
Bank Directors mill be greatly misconstrued by those who
omit no opportunity of assailing them. We may, therefore,
as well guard our readers beforehand against such a contin-
gency, by explaining to them the situation of the .Money Mar-
ket at the present time. They will then understand precisely
the nature of the emergency which the intervention of the
Bank of England is intended to meet. It is to he observed
that the financial quarter is tow draping to a close, and that
the Bank will, from day to day, be in the receipt of the sums
of money paid into the Exchequer on account of the Reve-
What the aggregate will be is, of course, uneer.:
.ain, It may be supposed to be about four millions. As-
seining, then, that such a sum is suddenly withdrawn from
circulation, and no part of it returned to the public, how
grievon.ly must the trading interests be inconvenienced?
_

title.

The dividends will become payable before the period
fixed by the Bank for the reimbursement of their ad-
vances comes round, and then the sums now about to be

issued may with safety be recalled. The current rate of inte-
rest demanded fur the discount of unexceptionable paper in the
open market,- is just now from 3 to 31 per cent , but were the
Batik of England to continue to keep their cotters closed
against the public, as recommended by the money dealers,
we will venture to say that before the payment of the dividend
commences, it eould be carried at least 2 per cer.t. higher.
It is to obviate this evil, to equalise the rate of interest, and
fur the purpose of supplying the legitimate wants of the mer-
cantile community, that the 13ank Directors feel themselves
called upon from time to time to interpose between the mer-
chant and the capitalist. Without such interposition it is evi-
chnt the latter would ha left, as is the case in America, to
exact his own terms, however extravagant they might be. In
addition to the turns of money passing front the Exchequer
Lto the hands of the Bank, in payment of duties, there is a
large reserve made by Government, and were oo portion of
these moneys to come again into circulation before the divi-
dends become due, the pressure upon the commerce of the
country would be greater than could possibly be borne.-
1/lor emg Post.

The only variation in form from the last notice of the Lind
is this, that the rate is one per cent. lower than tb.: rate for
discounts. Nothing could be less called for by the state of
the money-market than this proceeding on the part of the
Bank, and most people ale at a loss to know what mo-
tive can be ssigned for it. As the principle is confessedly
a bad one, to establish two t ates of interest by the same est.r-
blishment, in the same market, there was required at
least some emergency, or peculiarity in the state of it,
to justify the measure, which is et, however, to be
discovered. One conjecture ventured on the occasion has
been, that the accommodation is chiefly intended for
the Bai.k Directors themselves. This is tot meant of them
ire an absolute serse as merchants, but as enabling them, with
tee arc:.ter facility, to eatry through those arratigemei.ts
they made some time back for :,ustairling the great
American houses. Connected with those arrangcmvuts there
is a large mass of East India and China bills, at long dates,
upon which, under all the circumstances, money could per-
haps only be obtained under such a notice as that just given
at the Bank. For the public it is clearly of no use, and the
cause above assigned, if it is really the true one, is a very
poor excuse for such a departure from a sound and just system
of banking. The resolution of the Bank Directors has tended
still further to improve the appearance as well as the price of
Consuls, and more business may be reported in consequence.

To the surprise of most people, the Bank of England is
ready to make advances upon " approved bills of exchange,"
at the rate of four per cent., being a reduction of one per cent.
from the late terms upon which accommodation was rendered.
At the regular bill-brokers the charge continues to be from 3
to 31, tier cent., and, if any thing, is on the decline ; so that it
is nut at all probable that many applications will even now be
made to the Bank. The object of the Directors, in coming
to the present determination, appears altogether strange, fur
it has seldom occurred that the notice has been put forth
after the shutting of the transfer books for the dividends in_
stcsd of some time previous, as customary. In times of ex-
treme pressure for money, such a departure from the usual
routine could be easily, understood; but, at the present mo-
ment, when there is abundance of it, and a great amount
which cannot find employment, the conduct of the Bank can-
nut be so readily explained, unless, indeed, there is a desire
to participate in the profits deri.,ed by the discount houses;
hut this is frustrated by the high terms on which busil.ess
will he trtwacted. Six mouths' bills, which take in the East
India paper, is included, bit " Exchequer Bulls, India Bonds,
and other ai,proved securities," are again omitted, notwith-
standing which the resolution was formally transmitted to the
Stock Exchange, as if bills ofexchange were dealt in there.—
Morning Chronicle.
Th- state of commercial affairs has bzen much improved to-
day by a notice which was issued in the afternoon by the 1)i-
-rectors of the Bank of Eo7land fir reducing the tale of into•

refit on money from 5 to 4 per cent., and for granting► accnrn-
m• jation by loans of money upon the deposit of approved bills
of exchange, to be repaid on or before the 20th of October. It
will be observed that the accommodation only extands to bills
of exchange, and tAthougl, a strong diversity of opinion exista,
as t., the policy of reducing the value of money by the Bank
of England. still there cult he no doubt but that essential as-
sistance will be given to holders of large bills by the course
taken by the managers of the corporation. The reduction
of the value of money by the Bank of England is of advantage
in another point of view, as showing to the mercantile inte-
rests the coinietion of the Dtrectcrs that their position as
►egards the amount of bullion in the coffers of the establish-
ment is as favourable as they could desire it to be. No doubt

the favourable character of the ad% ices received by the last
packet from the United States has had some. influence with
the Directors. The reduction of the rate of interest will, in
all probability, give fresh life to commercial affairs. The pub-
lic securities were improved by the issuing of the official notifi.
fication._lWorning Advertiser.
Considerable interest was created in the monetary and com-
mercial circles, in consequence of the Bank of England notice.
Thus it appears that the Bank of England have reduced their
rate of interest from 5 to 4 per cent , and have extended these
advances to six months' bills, which. of course, will cover all
the paper drawn from China, or the East Indies. It has, how-
ever, been questioned t% hteher this course, on the part of the
.Bank direction, is a prudent one, by many experienced men ;
and, as unexceptionable parties can readily obtain loans at
from 2+ to 3+ on good security in the market;this determina-
tion has rather been viewed in the light of an undue interfe-
rence with the steadiness of the value of money. It is appre-
hended that it will give an undue stimulus to speculation, and
in cotton -wools. one almost unwarranted is now going on
No longer ago than yesterday
we already see that
the sales of
cotton at Liverpoel amounted to 7.:7100 bales at rather dearer
prices, whilst on the other hand we tied that the manufacturers
c mplain already that they cannot obtain remunerating prices
for their accumulating stocks. It is easy, therefore, to sest
that if speculation is now encouraged in imported articles,
it t% ill not be long ere it will recoil upon the speculators, and
manufacturers also. Wo have always held, and we believe,
that it is a maxim with experienced monetary inen, that the
less the Bank tampers with the circulating meaium the better
for that Corporation and the community at large. There is a
wide difference between regulating the currency and sudden
expansions or restrictions of it. Altogether, there is a good
deal of ;nspicion as to the motives of the Bank direction in
o.fterii;g loans and lowering their rate of interest at the present
time ; and for the sake of the credit of that Corporation it it
t in the Bank
not has given a decided
be the speculators, 'ehose heavy -
private influence has no voie
erompts are falling
ptoi.,bioeulrio.pod that
due, who they may, The Bank not
stimulus to the value of Conse:.s, although there has been
end 92 for the Account. The
vo.y little doing in ,ne British Securities generally.
Nee": °Ph 'Three-sad- ta
-91-111all‘f1)°,:revdents. are 991 t a ie and the pre-
mium upon Exchequer Lillis' is quoted at 47 a 50, and upon
India Bonds at 4ti it 40,,—Aforniity Herald.