The Sun.
London, England, 1838-03-19 00:00:00

MONEY and COMMERCIAL MARKET.

(From the Morning Papers of this day, Monday.)
TINIEL_What occurred at the late Bank meeting will have
prepared the public for some unusual proceedings on the part
of the Directors, since it was obvious that they can no longer
satisfy the expectations of the proprietors by keeping to the
ordinary course. They now appear in a character they have
never sustained before, that of becoming direct exporters of
bullion. It is understood that gold to the amount of half a
million, if not much more, is immediately to be shipped off for
the United States on their account, and consigned to Mr.
Cowell, their agent at New York. They have thus made
merchants of themselves as completely and effectually as
though they had received in a direct way a consign-
ment of cotton or indigo. To the regular merchant there
ac e periods constantly recurring in which gold and silver,
whether in the shape of coin or otherwise, become ob-
jects of merchandise, and of export or import, as the
case may be, at a profit. Those who have remittances
therefore to make to America, would find in gold such
an article of profit at the present time as seldom
falls in their way, the exchange being 5 or 6 per cent. in
favour of New York, and the expense of transmitting bullion
probably not more than 13 or 2 per cent. Why should the
Bank step in to rob the merchant of this advantage, which
strictly belongs to him, and ought not to be interfered with by
an overgrown monopoly of this description ? The Directors
cannot plead, which would be their only shadow of an excuse,
that there can be any necessity for, or public utility in, this
interference; the bullion, if is is to go, will go fast enough in
the common course of trade, but being thus sent in a large
mass at once, the market will be effectually spoiled for the
merchant. If they imagine that the measure will ultimately
turn the exchange, and prevent the exportation of what further
gold may be wanted to enable the American banks to resume
specie payments, they are much mittaken ; and if the drain
goes on beyond a certain point, we shall find them, as they
have done on many former occasions, interfering in the con-
trary sense with the merchants, and refusing the accommoda-
tion of discount, not as a question of security, bat because they
suspect that the proceeds are to be sent across the Atlantic in
bullion.

POST. —We were informed this afternoon, and we believe
the statement is entitled to credit, that a shipment of gold to
New York, for account of the Bank of England, has been de-
termined upon—that a million of sovereigns are, in fact, to be
immediately put on board one of the packets, probably a
Liverpool vessel, bound to that port. It is said to be con-
signed, in the first instance, to the house of King, 'Ward, and
Co., though it will, we presume, be placed, on its arrival, at
the disposal of the agent of the Bank of England, Mr.
Cowell. Such an arrangement on the part of the Bank Di-
rectors cannot but be attended with the most beneficial results
to both communities, for our manufacturers will scarcely feel
the influence of it less than the merchants of the United States.
Active Spanish Bonds, including the unpaid Coupons, have
fallen to 21i to I. The cause of the late movement in these
securities is, at length, explained, although by no means, as it
would appear, to the satisfaction of those who have had the
folly to invest their money in them, under the impression
that some financial arrangement, from which the bondholders
were to derive great benefit, was under consideration at Ma-
drid. In a Morning Paper of this day we find the following
correspondence upon the subject
" Our Madrid letters are of the 7th instant. Report speaks
of a loan of four hundred millions of teals, which the Finance
Minister bad succeeded in nearly obtaining from certain capi-
talists, but not from M. Laffitte, as some Journals hint, nor
yet from Rothschild or M. Toreno's financial friends."
The " report " of the Finance Minister having " nearly"
concluded a bargain with certain capitalists for the advance of
four millions sterling may obtain credit with some persons, but
we are not ourselves of the number. It is, however, enough
to know that the negotiation has failed. The affected assur-
ance that it was not from M. Laffitte, nor Messrs. Rothschild,
nor from the friends of Toreno, that this large sum was to
have been procured, borders upon the ludicrous, and has, in-
deed, been made a subject of merriment among the frequenters
of the Stock Exchange. For our own part, we were satisfied
from the first that it was nothing but a cruel hoax, that the
sharks of the Alley ivere practising upon their unfottunate
victims.
The Share Market does not recover from its late depres-
sion. There was very little business doing to-day in any
description. Great Western Railway were marked 27 to
rem., Eastern Counties .4- to prem., London and Brighton
2 to 3 prem., and Manchester and Birmingham 31 to 4-41-
prem. per share. Some new schemes, which have very much
the appearance of bubbles, have been brought upon the market,
and although they have not found admission into the official
lists of prices, we understand they have been " rigged" to a
considerable extent. We recommend the readers of the
Morning Post to make some inquiry into the merits of these
speculations before they embark their property in them.
The probability is, from all we can hear, that they will result
in much loss.
By the ship Norfolk, we have price- currents from the Mau-
ritius to the 19th of December. They quote the exchange
on London, for Government bills at thirty days' sight, 1 per
cent. prem., and for private paper at ninety days' sight, 21 to
4 per cent. discount. The total amount of sugar exported
from the Island between the 12th Sept. and the 18th of Dec.,
is stated to have been 23,793,134 lbs.

MORNING CORONICLE.--The proceedings in the English
Stock Market to-day (Saturday) do not furnish any matter
for comment, there being in fact scarcely any business trans-
acted, and the quotations remaining the same as yesterday ;
namely, Consols, 924 to 93 for money, and 93 to a for the ac-
count ; and Exchequer Bills, 62 to 64 prem.
Brighton Railway Shares, which were the chief attrac-
tion in the Share Market for a long time, seem to be gra-
dually becoming less speculative, and are, therefore receding
by degrees. They closed to-day at 21 to 3 prem. In the
others there is veey little alteration to be shown. Bir-
mingham, old, left off at 85 to 90 prem.; ditto new, 261
to 271 prem.; Southampton, 451 to 464 per share;
ditto new, 214 to 221 prem. ; Great Western 27 to 28
prem.; Leeds and Manchester, 18 to 20 prem.; Man-
chester and Birmingham, 34 to 44 prem.; Birmingham and
Derby, 2 to 1 dis. Blackwall, 34 to 1 prem.; Commercial
ditto, 21 to 4 prem.; Greenwich 3to 2 dis.; South-Eastern,
1 dis. to par; Dublin and Kilkenny, 1i- to 2 per share ; and
North Midland 6 to 7 prem.
Foreign Securities generally were heavy, but there was very
little done in them. Spanish Active left off at 214 to 1, or
204 to 21 ex coupons ; Deferred, 74 to ; Passive, 41,- to
4 ; Portuguese Five per Cents., 30,L2 to 31 ; ditto Three per
Cents., 204 to ; Dutch Five per Cents., 1021 to 4; ditto
Two and-a-half-per-Cents., 521 to ; Brazilian, 76 to 77 ;
Colombian, 981 to I ; Mexican, 28-1 to ; Peruvian, 20 to 21 ;
and Belgian, 1024 to 1031.
Our contemporary the Times stated a few days since
that the Chancellor of the Exchequer was about to borrow,
2,000,000/. from the Bank of England. As the Governor
of that institution denied that any such arrangement was
in progress, or even that the Directors had the power to`,
make any such loan, "it is for Mr. Spring Rice then to
explain," says our contemporary, '‘ what is meant by his]
!late act for applying the sum of 2,000,000/. to the servie
1.0.,
the year 1838, and what are the public to .understan
Eby its description as part of the sum now remaining in
.the Exchequer.' Till this is explained the opinion in the
City will be that the whole is a juggle between him and the
Bank." We scarcely could have supposed that our contem-
porary could have found out a "juggle" in so plain a case,
for if he had reflected he must have been aware that there is
always a balance of 4,000,0001. of the public money in the
hands of the Bank. By turning to the evidence of Mr.
Horsley Palmer before the Bank Charter Committeee of
1832, it will be seen to be so explained, as, indeed, it
must be evident to every body of any financial knowledge
that there must always be some reserve in the hands of
the Government for emergencies of an extraordinary kind.
" Remaining in the Exchequer" means only remaining in
the Bank of England, for no money is ever kept in reality
at the Exchequer, and the Act of Parliament which the
Chancellor has applied for is merely to allow him to draw
t
2,000,0001.
from the Government balance at the Bank. It