The Sun.
London, England, 1854-01-02 00:00:00

T.HE OLD AND THE NEW YEAR.

(Prom the Banker's Magazine.)
Looking disparsionately at the events of the last 12
montfrA, it cannot be denied that all classes have had to
contend with various disturbing elements ; but these
elements have been produced by the transition through
which capital and labour are now gradually passing—
tile consequences of the gold discoveries in Australia and
'California, and the altered relations which they are
destined to create. Political considerations apart friom
those connected with the attitude of Russia towards
Turkey, have probably not for a long time past made so
inconsiderable a figure in the ordinary course of affairs.
The several measures of the Government, if not altoge-
thersuccessful, having been received with a tacit acknow-
ledgment of their propriety—the only determined oppo-
sition being in the case of the India Bill, which, despite
its thorough inadequacyfto meet the requirements of the
period, was permitted to be adopted as a kind of cone-
between Oho 'summery aou the Court of

NG, JANUARY 2, 1854.

depreciation having taken place in prices at Port Philip
and New South Wales.
Concurrently with this adverse change in the general
situation of mercantile relations, the fears entertained
with regard to a deficiency in the harvest necessarily
awakened attention. The crops in France, Germany,
and Italy were short, and these respective Governments
not only enforced their customary prohibitions of ex-
ports, but also commenced large purchases to increase
their own supplies ; and as these had taken place before
the termination of our harvest, we were somewhat in a
state of doubt relative to actual resources. The late
improvement in prices, although facilitated by specula-
tion, has since afforded strong evidence of a scarcity of
the principal cereal products ; and the season, so far as
we have yet gone, does not promise much relief for the
coming year. The enormous advance in provisions of
all descriptions, particularly the prime necessaries of life
—the rise averaging from 30 to 35 per cent., and in
some cases still more—has, of course, affected many de-
partments of business ; while the strikes in the manufac-
turing districts, although occurring at a period when a
limit to production is in a measure desirable, must ine-
vitably lead to distress and discomfort.
The mania for new companies, which distinguished the
first five mouths of 1853, gradually subsided from pure
exhaustion—the caution of the public and the increased
value of capital co-operating to repress an undue infla-
tion before it reached a dangerous point. Multifarious
as the projects were, embracing almost every species of
enterprise, representing in the aggregate a considerable
sum, the tendency in any single direction was not suffi-
ciently extensive to entail large losses. The speculation
having now ended, with little prospect, the market re-
mains inundated with a vast quantity of securities which
are almost valueless, owing to the doubtful nature of the
undertakings, and the irresponsible character of their
promoters.

While we have been passing through this period, al-
though our supplies of gold and specie have proved pro-
portionately great from Australia, America, and the
Spanish Main, the shipments to Melbourne, Sydney,
and the continent, with those also made to India and
China, since the outbreak of the revolution, have, in ad-
dition to the absorption of all imports, caused a drain
upon the Bank of 5,000,0001., the stock of bullion on
the Ist of January having been 20,527,6621., whereas on
the 17th of December it was 15,44-3,256/.
The lowest amount returned was on the 22d of Octo-
ber, when it had descended to 14,969,2061., the reserve
of notes having, in the preceding week, stood at the
limited figure of 5,012,4901. From the 6th of January,
when the directors raised the rate of discount to 2i per
cent., until the 29th of September, when they effected
an advance to 5 per cent., the terms for accommodation
have been steadily augmented, and up to the present
moment the Bank's latest quotation is maintained with
firmness.

Consols on the Ist of Januaryiwere 1004 ; in April
they were at their highest point, which was 101: they
then gradually declined, until panic seized the market in
October, and the quotation fell to 901. From this price
they eventually rallied to 96, and are now about (in-
cluding dividend) 954. The extreme range in the value
of railway shares has been considerable—in some in-
stances from 15 to 20 per cent.—while, from the most
depreciated quotations, the recovery has not exceeded 3
to 5 per cent.

Although, when the Bank directors raised the rate of
discount to 5 per cent., more than ordinary pressure was
experienced, not a single mercantile failure took place.
This was considered to be a sufficient proof of the general
prosperity of trade, and of the caution exercised with re-
spect to speculative operations in England and the colo-
nies. Not so, however, with our transatlantic neigh-
bours ; the disarrangement of the New York money mar-
ket, which continued in full force from September to
November, and has yet only partially abated, created Con-
siderable disturbance in credit. Suspensions of import-
ance were received by each steamer ; and, although
principally connected with what are termed dealers in
" fancy" securities, their general effect was extremely
unfavourable, and caused for the moment alarm, lest
their ramifications should extend to other and more sub-
stantial firms.

The result of banking business is on all hands admitted
to have been extremely encouraging, and the shareholder
are looking forward to handsome rates of distribution.
Of all experience in banking pursuits, none has been
more remarkable than that identified with the several
Australian establishments. Increased dividends have
been declared in addition to the appropriation of im-
portant amounts to meet ordinary contingencies ; and
the new institutions brought into operation have begun
business with every appearance of succeeding.
Abroad, the foundation of banks on the joint-stock
principle has enlisted some supporters, several having
been organised in the continental cities ; but of their
progress little has as yet transpired. An endeavour has
been made to set on foot a project for a Mexican na-
tional bank, but no hope can be entertained of its being
satisfactorily conducted in an administration such as is
likely to prevail during the rule of Santa Anna. At
home, we have had no increase to existing establish-
ments. The 'merits of two new London joint-stock
banks were privately canvassed in July and August last,
with apparently some prospect of support ; and it is un-
derstood that the plans upon which they are proposed
to be conducted are still available, whenever the preli-
minaries can be efficiently managed.
At the latest moment we write the commencement of
the New Year does not appear to be attended by propi-
tious circumstances. War with Russia is predicted as
almost a certainty. The temporary retirement of Lord
Palmerston has created dissensions in the Cabinet ; and
the public mind is far frog boing tramiumiseu ny the
indefinite and unsatisfactory nature of the various float-
ing rumours. The presence of the English and French
fleets in the Baltic may, although tardily ordered, ren-
der the Emperor Nicholas sensible of the danger which
his unwarranted conduct has provoked, and, after all,
induce him to accept terms of compromise which shall
secure the integrity of Turkey, and respect to the wishes
of the Western Powers. Should blind obstinacy, how-
ever, urge him to engage in this fresh contest, while
feeling satisfied of what must be its actual issue, we
abstain from attempting to estimate its political and
financial consequences.

A LETTER FROM AUSTRALIA.

The following letter from Mr. Canova Megson, a
brother of Mr.-Albert Megson, stationer, Market-street,
in this city, has been handed to us for publication. It
was received on Tuesday morning, by the latest mail :
" Melbourne, Sept. 26, 1853.
" Gentlemen,—The success which has hitherto at-
tended the efforts of the Peninsular and Oriental Steam
Navigation Company in affording a speedy and sure
communication between Australia and the parent coun-
try, has secured to them such an amount of patronage
that it will require great exertions on the part of any
rival company to rob them of those laurels they have so
ably won. One of their mails being about to be des-
patched hence to Great Britain to-morrow, I avail myself
of the opportunity of giving you a few remarks upon the
state of affairs in Melbourne. Whilst upon the subject of
postage communication between this part of the world
and England, I may mention that great disappointment
and inconvenience have been felt from the very irre-
gular manner in which the mails have been received from
the parent country. Great satisfaction was manifested
here on receiving the news that the Home Government
had withdrawn the contract from the Australian Steam
Navigation Company, whose repeated failures in the
transmission of the mails to this and the neighbouring
colonies had most seriously inconvenienced the mer-
chants and the public generally, who experience great
losses by the irregularities complained of. The Strat-
ford, which brought out the English mails of the 4th
June last, arrived at Sydney in 106 days, being a period
of 22 days beyond the time mentioned in the contract,
which was 84 days. The mails for Melbourne and Ade-
laide were put on board the Shanghae, which reached
here on the 25th (yesterday). The quickest passages
yet made between the two countries are by steamers via
the Cape of Good Hope, and until anothei route
has been discovered which will afford a more speedy
communication, the authorities at home would do well
to adopt that mode of transmitting the mails which has
hitherto proved most successful. With regard to the
state of this colony, we still continue to have a large in
flux of immigrants from all parts of the world, though the
recent accounts received of the prosperity of the mother
country, coupled with the unsatisfactory statements of
parties who have been disappointed with this land will,
I have no doubt, have their influence in checking the tide
of emigration which at one time assumed such an aspect
that it almost threatened to decimate the old country.
If we may judge from the busy state of the wharves,
there is no lack on the part of our friends at home in
sending us out merchandise of almost every description.
Many articles are already cheaper here than at home, so
that some parties must have burnt their fingers.' Of
course, when any article becomes a drug In the market,
a general -order is sent home to stop the supplies, and
the article eventually gains its paying price, but not
before great losses have been sustained. Parties in Eng-
land cannot be too cautious in watching the exports to
these colonies, in order to ensure a consignment of such
goods as are likely to be scarce. Caution should also be
exercised in shipping goods by a firm of known respecta-
bility. A friend of mine had just received a quantity of
goods, the freight of which was paid to Liverpool in ad-
vance, with a written agreement that they should be
landed free of expense at Melbourne Quay. In the face
of this agreement, the agent in Melbourne has com-
pelled my friend to pay the expense of lighterage
from the bay, the amount of which is considerable, or
otherwise he would not deliver the goods. The worst
of the matter is, the shipping agent at Liverpool has
failed, and consequently it would be utterly useless
to sue a bankrupt shipping agent for damages. The
only way left for my friend is to pay the lighterage
under protest, and rest himself content. In regard to
the price of land, it still continues high, and affords
handsome profits to the wealthy land jobbers. The Go-
vernment are throwing more land into the market, not-
withstanding which the competition amongst the land
speculators is as great as ever. Rents are equally high,
if not higher, than they were two or three months ago.
Good permanent stone buildings are springing into exis-
tence in every part of Melbourne, nor are the suburban
portion of our population behindhand with their wooden
erections. In almost ever part of the district surround-
ing Melbourne, wooden houses, stores, &c., are shooting
up as it were by magic, and it almost seems like a fairy
scene rather than a reality. To walk a little way out of
Melbourne to a thriving locality reminds one of a coun-
try fair or wakes at home ; the continued hammering
and bustling resembles the noise made in putting up the
shows and other parapharnalia which is generally heard
on the day before the fair. The great consumption of
timber in the erection of these buildings has kept up the j
price of that article, until the recent heavy arrivals,
which have had the effect of causing a downward tend-

ency. The diggings still continue to yield well. The
individual instances of lucky finds' are not so nume-
rous as they were at the commencement of the gold dig-
gings. But there are still some fortunate diggers
who happen to be extremely successful in their opera-
tions. A party at the Ballarat diggings lately hit
upon a large table of gold, which was dug out by the
cwt. Such lucky hits as these inspire the more un-
fortunate part of the digging community with fresh
vigour, and they go on toiling with a patience
equalling that exhibited by Mr. Micawber in Dickens's
Copperfield,' who lived in the hope that something
would turn up.' There has been great excitement lately
at the Bendigo diggings in particular, in consequence of
a portion of the diggers refusing to pay the usual monthly
license fee of 305., which they considered was too exor-
bitant an amount. The affair eventually assumed such
a formidable aspect that it was feared bloodshed would
follow. Happily, however, such has not been the case.
Government seeing the dilemma they were placed in,
immediately passed a temporary bill reducing the license
fee to 40s. for three months, instead of 30s. per month,
as hitherto, the whole amount to be paid in advance.
This measure seems to have given general satisfac-
tion, and the excitement is now nearly blown over.
In consequence of the late threatening disruption, the
40th Regiment of Infantry has been sent to the dig-
gings, where it is reported they are to remain for a
considerable time, and the 99th Regiment has been sent
from Van Dieinen's Land to Melbourne, in order to
strengthen the power of Government in case of an out-
break. There was a grand fete at Geelong on Tues-
day last, on the occasion of the turning of the first sod
of the Geelong and Melbourne Railway. His Excellency
the Lieutenant-Governor of the colony was the principal
personage in the ceremony. A railway between Mel-
bourne and Hobson's Bay was commenced some months
ago, and in all probability will be opened in less than 12
months from this date. A car.al and dock company be-
tween Melbourne and the Bay has also been formed, and
will very likely be carried into effect without delay.
The post-office has been made three times as large as it
was twelve months ago, and is now carried on in so effi-
cient a manner that it certainly reflects great credit on
the manager of that department. The arrangements, I
am of opinion, cannot well be surpassed by any of your
first-class cities at home {London, Manchester, and
Liverpool excepted). A college is about to be esta-
blished. A large amount has been grinted for the public
library, and a grant for the formation of a musuem of
natural history is now being brought before the legisla-
tive council. - What with these and other things, which
time and space will not allow me to mention, Melbourne
bids fair to become eventually one of the most flourish
ing cities in the world.—l am, &c.,
—Manchester Guardian.

" CANOVA MEGSON