The Sun.
London, England, 1854-05-12 00:00:00

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LONDON, FRIDAY, MAY 12, 1854.

The Directors of the Bank of England have
again raised the minimum rate of discount. At
the breaking up of the Parlour yesterday it was
a nnounced that there was a further advance of i

per cent., or from 5 to sf. The lead of the
Leviathan was forthwith followed by the host of
minor fry that follow in its wake. The great dis-
count houses immediately increased the allowance
for money on call to 4i per cent., and, of course,
there will be at least a corresponding addition to
their charges for pecuniary accommodation. The
effect on the quotations of the public securities
was very decided. Indeed, the announcement,
which, from the favourable turn in the Exchanges
and the diminished demand of gold for exporta-
tion, was altogether unexpected, fell like a thunder-
bolt on the Stock Exchange. But a few hours
before the funds had exhibited great buoyancy.
There was an active demand for Stock for the
settlement now in progress. There was a panic in
the " Ursine " camp. Men who had made large
speculative sales of that which they had not in their
possession were eagerly buying back or borrowing
stock until the next account. There was a " back-
wardation" of per cent. at first, the price for
money being ss. then for the next settling day,
the 6th June. Consols reached 881 for money,
and 88 for account. This state of affairs was
however, speedily changed. It soon became per-
ceptible that some secret was known to a select
and highly favoured few—that some mysterious
intimations were given by those who, without
any claim to prescience, could yet accurately pre-
dict coming events. Influential sellers appeared
in the market, and many heavy bona fide sales
were effected, a large proportion whereof were
attributed to the Bank of England itself. This
statement was the more credible, as it was well
known that on the previous settlement the " Old
Lady" had taken " the bears" under her especial
protection. More than a million of stock was lent,
to enable "the speculators for a fall" to avoid the
heavy losses they would otherwise have sustained,
and large sales were also effected. It is therefore
more than probable that the "intentions" of the
Directors were made known to special favourites,
and acted upon by the Bank itself, before the
general announcement. A very questionable pro-
ceeding, if such were really the case. It will be
in the recollection of our readers that great indig-
nation Was some time since expressed on what was
supposed to be a line of conduct very similar to
that above indicated.
The consequence of the appearance of these
"judicious" sellers was to send back prices a little.
The " tendency to reaction" was, however con-
firmed, when the intelligence of the extraordinary
and unanticipated move by th
lished—a move that was e Bank was
manifestlypub-
the result of
a deliberate intention to depreciate the prices of
funds and other securities, and thus to "check-
mate" the Chancellor of the Ezehe
qtter--to. prevent
him from obtaining the
money he
=er ;it red and
to exhibit in the most unequivocal
in-
solent defiance of the significant and menacing
intimations of the Right Honourable Gen-
tleman contained in the Budget (Nn. 3),
and re-echoed, with emendations and additions,
that cast the celebrated echo of PADDY BLARE
altogether into the shade—by his faithful man
FRIDAY of the Fourth Estate.
Practically, the charge was neither more nor
less than a challenge to Mr. GLADSTONE to carry
out his threats—if he dare ! The Directors de-
sired to exhibit the most contemptuous and une-
quivocal disregard for his power, and to brave all
that he can do. The unnecessary nature of the
movement was manifest from the fact that, while
the Bank of England was increasing its rate from
5 to 5i per cent., the Bank of France was reducing
its charge from sto 4 per cent.—a difference of
1 per cent. between the operations of these great
establishments, not merely within a single day,
but within a single hour. If we couple this with
the fact, that the Exchanges had become far mere
favourable within a few days, that what was
alleged to have been " the considerations that
warranted a fresh movement"—that is, to say, a
furtht or increase in the rate of discount existed in