The Sun.
London, England, 1854-08-04 00:00:00

BANK OF ENGLAND.

The Bank of England to-day have reduced their rate
of discount from 5 per cent., at which it had stood
since the 11th of May, to 5 per cent.
This measure was fully anticipated at an earlier date,
but it created some surprise at the moment, as the in-
creased ease in the money market has not been of long
duration, and the prospects of the future will depend
on the harvest operations of the next fortnight or three
weeks. The state of the weather throughout the morn-
ing, which had caused great dullness in the Stock-
Exchange, appeared also to diminish the probability of
such an announcement. At the same time, there is no
dispos.tion to regard it with dissatisfaction. The directors
have, of course, acted from their view of the accounts
which will appear in the Gazette of to-morrow evening,
and the diminution in the demand for accommoda-
tion within the present week. All that requires
to be borne in mind is, that the resolution has not such
significance as would have attached to it at a later time,
and that, although there is reason to hope, after a period
of between two and three years, during which an upward
movement of the rate has been going on without the
slightest interruption, that the greatest inconvenience is
at length passed, and that a steady turn the other way
inay now be witnessed, there is as yet no positive ground
for that conclusion. If the harvest had been secured,
the public might have entered into arrangements with
I the certainty not only that the reduction would be
permanent, but also that it would speedily be car-
ried further. As it is, they must not allow them-
selves to be influenced by any temporary move-
ments in the money-market, but look solely to the
reports of the crops and the tendency of prices on
the Corn-Exchange. If these should still be favour-
able, all other apprehensions may be dismissed,
since trade in every quarter is inherently sound, and
the Board of Trade returns published yesterday give
every proof that could he desired of the limited check
which the war and its expenses are capable of inflicting
upon our prosperity.
The English funds opened this morning with consider-
able heaviness at a further decline of an eighth, and, but
fur the'notification from the Bank, would evidently have
remained to the close of business without reaction.
Upon the alteration in the rate of discount becoming
known, an improvement of I per cent. took place, and
the market closed with steadiness. Consuls for money
were first quoted 92 to 1, and they left off at 92f to f.
For the account the last price was 921 to 1. Bank
Stock closed at 2091 to 2111 ; Reduced, 921 to 1 ;
Three-and-a-Quarter per Cents., 93 to ; Long An-
nuities, 46 ; India Bonds, 2s. to ss. premium ; Exche-
quer-bills, ls. to 4s. premium; and Exchequer-bonds,
HI to g.
The discount houses did not give notice this after-
noon of any reduction in their rate of allowance for
money at call, but to-morrow they will doubtless lower
it from 41, which is their present limit, to 4 or 41...
When the Bank raised their rate of discount, on the
11th of May last, from 5 to 5/ per cent, Consols were
at 881, and the stock of bullion was 12,608,0791. Consols
are now 92i, and the stock of bullion 13,633,6771.,
with the prospect of an increase, apart from foreign
arrivals, by a return of a portion of the specie lately ab-
sorbed. in the payment of the dividends.—Times City
Article.