The Sun.
London, England, 1853-10-07 00:00:00

MONEY MARKET

AND
CITY INTELLIGENCE.

CITY, TWO O'CLOCL

The sales of cotton at Liverpool yesterday
were estimated at 5,000 bales, including 500 Surat
taken on speculation. The market closed heavily,
with little or no change in prices. The sales com-
prised 3,500 American, 160 Pernam and Maran-
ham at 62d. to S/d., 100 Bahia at Nd. to 60.,
100 Egyptian at 7d. to 9d., 1,000 Surat at 3d. to
4d., and 30 Sea Island at ls. 6d. to 2s. 10d. per lb.
The Railway Share Market was very excited, and
the fluctuations were violent, closing per cent.
under the opening prices.
In the produce markets this week the political
news has had some effect. In iron, however, there
is an advance, owing to the increasing demand and
the large reduction of the stock at Glasgow com-
pared with this time last year. Tallow has been
higher than at any previous period. In sugar
there has not been a large business done, but coffee
has been tolerably firm. In cotton there has been
very little doing. The indigo sales have com-
menced, and some descriptions have gone rather
higher. Tea at the public sales has not been very
active. Hemp has been at advanced rates.
The good shipping Bengal indigo from ss. 9d. to
6s. 3d., sold yesterday afternoon with spirit, at 3d.
advance on July sales; very ordinary and good Kur-
pah maintained their value, but the middling sorts
and ordinary Madras are lower; 360 chests were an-
nounced as withdrawn; 1,437 chests passed, of
Which 440 were withdraw-n, 465 bought in, and
532 sold. Total passed, 4,265.
The following observations upon the money ma*
kets of Europe and America are from a New York
contemporary :
" The cause of the present stringency in the money
Markets of the United States and Great Britain is sim-
ply overtrading. We have imported too largely, and
Great Britain has exported too largely. That these
Movements so opposite should produce the same results,
may appear strange, but it is nevertheless true. We have
run too deeply in debt, while Great Britain has trusted
t 420 large an amount on too long a credit. This is the
trouble , and both nations must have time to extricate
themselves from the embarrassments with which they
41% surrounded. Both have overtraded to a certain ex-
tent, but it has been in legitimate lines, and the channels
of trade are clear from all obstructions of a serious Cha-
l'acter. We have only to keep quiet for a time, to rest
a little, and allow things to recover from the great ten-
sion they have so long laboured under.
"The advance in the rate of interest by the Bank of
England to four per cent. should not create an alarm in
the public mind. It may for a time check the invest-
ment of English capital here, and it is possible may to
a moderate extent call home capital already invested in
this country, but it can only be temporary. The rate of
interest on this side of the Atlantic rules too high, and
foreign capitalists have too much confidence in the cha-
racterof our public securities to make any very great
bchange in their investments. It may be many years
e re the rates of interest ruling in England and in the
United
—states approximate much nearer than those
now current, but it is pretty certain that they will
never again be much farther apart. We are too
closely connected in our financial and commercial ope-
rations, and by the improvements in steam navigation
too near neighbours, to permit such a wide difference
in the value of money to continue much longer. It is
not likely that the rate of interest in England will
come up to that now ruling here, or that ours will come
down to that now ruling in London, but they will gra-
dually, but steadily, approach each other, until the rate
ieach country will vary but the smallest fraction. It is
ruleentirelyincitoiues sointimately out
ofthe question i
for such extreme rates to
allied n financial relations as
London, New York, and San Francisco. In London four
per cent, is now the current rate ; in New York seven to
ten per cent. London and New York are only about ten
days apart, with almost daily communication by steam-
ers. London and San Francisco are only about thirty
days apart, with semi-monthly communication by
steamers. These three financial centres should have a
more uniform standard of vale for money. In London
or New York there cannot be such a wide difference
much longer, and as they approach each other the money
markets of each will be better regulated. Money will
ultimately fiord its level in valve, and where it commands
the highest price, with equal security, there will be the
alteration."

The demand for money increases. Upon good
second-class paper some of the banks are charging
as much as 6 per cent.; and, from inquiries in all the
best informed quarters, we cannot learn that there
is an expectation of the rate of discount being lower
for some time. On the contrary, there is a more
prevalent belief that money will become dearer,
although generally trade is in a very wholesome
state. The Bank of France yesterday put up its
rate to 4 per cent., and the Bank of Warsaw has
further enhanced its terms from 5 to 6 per cent.
Acted upon by the continued statements of the
Ministerial journal, that the Emperor of Russia
will be only too wiling to retire from the Eastern
difficulty, the speculators for a rise have been ope-
rating in Consols, while the Bears have been buying
back, and this, combined with the fineness of the
day, has sent up the quotations lf per cent. com-
pared with the closing prices of yesterday, viz., to
921 The intelligence just received, however, of
the preparations for sending a French army to
Constantinople, of the alleged passage of the Dar-
danelles, and of other indications of firmness
which really ought to make the funds rise, have
had the contrary effect, such is the timidity of
mere " time" speculators, and Consols are now
selling at 92. A more important circumstance
probably is the demand for money in Lombard-
street, although in the Stock Exchange it is easy,
owing to some of the large jobbers having dis-
posed of their stock, preferring to keep their assets
at command. South Sea Stock is steady at 113,
amid Bank Stock for Account at 220 to 222. Ex-
chequer Bills have been 11s. to 12s. discount.
Foreign Securities have been generally rather
better. Mexican have realised 24 to 24i, and
Equador 4g. Peruvian Bonds have been at 69k
to 70, being flatter. There is great difficulty now
in selling this stock. Sardinian Bonds have been
quoted 901 to 91. Spanish Deferred Bonds have
realised 21 and the Certificate is at 5i to
Russian 4i per Cents. are supported at 98.
The Railway Share Market is sensitive, but
there is an improvement in Great Western, York
and North Midland, and some other lines. French
Shares have been much the same.
The Gold Mine Shares have been dull, but firm,
and the Joint Stock Banks have risen. The Land
Companies' Shares are rather better.

BRITISH FUNDS THIS DAY AT ONE O'CLOCK
(Front the Official List.)
Business done.
$ per Cent. Consols Annuities- 914 21 23 3
South Sea Stock
Bank Stock for Account 220 2
Consols for Account
Exchequer Bills, ld.
£IOOO
£5OO ll d
gm.ll ll d

PRICE OF FOREIGN FUNDS AT ONE O'CLOCK.
111'milian Bonds, 5 per t 'cut
, Ditto Small
Tellador Bonds
24,3/4 4 3
I,:eaal 3 per Cent.
1t .n Bonds, 4i per Cent.
'l4ll Bonds, 12, 5
)itt
Sara; 04i per Cen 82t
98
per Cent. £ St
Spanish Bonds, 5 per Cent 9l 9O
srcush New Deferred, 3 per Cent 2ll 1
'434lish Committee Cert. of Coup. not fun 5 -!,-
Dividends on the above payable in London
bitch Exchange, 2i per Cent. 12 Guil
Ditto 4 per Cent. Certificates ......

....
HALF-PAST TWO.
Consols 914 2
Ditto October Account 914 2