The Sun.
London, England, 1854-11-29 00:00:00

COMMERCIAL INTELLIGENCE.

Commercial affairs both in Sydney and Melbourne
continue in a state of the utmost depression, and com-
plaints are loud and heavy of everything being over-
done. Many predict "a crash," and there will no doubt
be some minor failures ; but that what is understood
by the term "a commercial convulsion" will occur
does not appear probable. The bulk of the losses on
the late large shipments and forced sales will fall on
the exporters at home, who have speculated with some-
thing like infatuation, regardless of the numbers of
the population, or what suits the market. The resi-
dent firms, who order exactly what is wanted; have the
command of storeroom, and can wait, are not positive
losers, though at present they may not be making profits.
The immense deposits in the banks of Sydney and Mel-
bourne, and the fact that the paying power, the yield of
gold, is rather increasing than diminishing, indicate
that the mass of the mercantile houses are perfectly
"solvent," and something more. The retailers who
have taken premises on lease in the last two years,
trusting to the continuance of excessively high prices,
and find business decrease both from competition and the
glut of goods, will bo the severest sufferers. A gradual
descent to a more nattral level of rents and prices would
be a public advantage, though it might involve the ruin
of some of the over-sanguine traders, who appear to
have believed at one time everything could go on rising
for ever. The severe losses of many exporters in Eng-
land must at last produce their effect, though all the
warnings from the colony during the list year have
failed to impress on their minds the fact that 600,000
human beings anpet consume sp much as 6,000,000 ;
that there is a limit to the consuming power of the
colony, and that that limit has been fully reached. The'
stocks in Sydney-and Mel urne are enormous ; and it
will require time to reduce them. So completely has
the state of things changed, that English manufactured
goods can be bought here and re-exported to Europe at
a profit ; and a system of speculation, based on the cer-
tainty that it can be done, is actually springing up.
It will be perhaps difficult to give steadiness to trade
will]. a "land of gold" till a few years of experience has
given some severe lessens. San Francisco and Cali-
fornia are equally over supplied in this, the fifth year of
their golden era, and the returns of sales in that region,
like those from Australia, show that the shippers are
losing. As for the communities thus over-cared for,
all who are only consumers of course will hear of the
ruin of their mercantile benefactors with great calm-
ness. All the commercial reports agree in recom-
mending caution to exporters on speculation ; there
have been so few transactions since the last mail that
prices remain unchanged. In many articles they are
only nominal, for no business is being done in them.
The Sydney branch of the Oriental Bank has announced
it will allow interest of 2 to 5 per cent, on deposits.
The plan has excited much hostility from the other
banks, which have been declaring large dividends, made
by the use of the extensive deposits, for which they paid
nothing. It is not unlikely that, however reluctant,
the old banks will be compelled to adopt the same
system finally.
Price of Gold in Sydney, Sept. 19 :—New South
Wales, 31. 17s. to 31. 17s. Gd. per oz. ; Ovens, 31. 191.
to 31.195. Gd. per oz. ; Port. Philip, 31.19 e. to Si. 19s. 6d. ;
Melbourne, 41. per oz.
Exchange on London, 5 per cent.