The Sun.
London, England, 1836-09-14 00:00:00

MONEY MARKET.

(From the Times.)
The system pursued of late by the Bank for the pur-
pose of making money scarce, is at length beginning to
produce a very decided effect on the markets for all public
securities, which appeared at first to be wholly removed
from its influence. Those who have relied on the conti-
nuance of the old system, and have entered, with that re-
liance, into very extensive engagements, are compelled, on
finding that resource cut off, to seek for assistance where-
ever they they can find it. This is necessarily bringing
forward for sale large investments of stock belonging to the
parties or to their connexions, and which was conceived by.
them, not anticipating such a change, to have been laid up
for a permanency. This is more particularly shown in the
large proportion which has been brought to market, both
to-day and yesterday, of the 31 per Cents., a stock which
is usually selected for fixed investments. Money, for the
re-employment of which any prospect exists, is generally
placed by preference in the Three per Cents., becauie,
though they do not yield so much in interest, large sales
may at any time be effected in them without materially
influencing the price. In this denomination of stock, how-
ever, the sales have been very large. That they have not
fallen to the same extent as the 31 per Cents , is to be ex-
plained by the circumstance just adverted to. Besides sales
of stock large amounts have been pledged for short periods,
and money has also been raised to a considerable extent
on Exchequer Bills, for which 5 per cent. has been paid,
though the current rate which those securities bear is
only 24 per cent. It is by such expedients alone that they
are kept in circulation without a decline in price much
below par ; but, unless some favourable change take place,
that cannot long avail them. They have been sold at par
repeatedly in the course of the day, and should a decline
to 2s. or 3s. discount only occur, they will be paid in for
duties, to the great embarassment of the Government. It
is understood in the city that Mr. Spring Rice has been sent
for from Ireland, to determine on the measures to be
adopted on the approaching emergency. The holders of
those Exchequer Bills which fall due at the end of this
month have still several days before they can be called upon
to declare whether they will take money or new bills in
exchange for them ; and in the present state of the market
they of course delay that determination as long as they
can, unless the Bank Directors volunteer their influence to
help the Ministers over the present difficulty, which they
cannot do without great inconvenience; and, without acting
at variance with the system on which, in other respects,
they are prdeeeding, the Exchequer Bill Market cannot
possibly be maintained.
In commercial discounts nothing less than 5 per cent. is
charged on the best paper, and &land 5} per cent. has been
currently obtained. Here the withdrawal of the operation
of the usury laws from bills of short dates comes with ad-
vantage into play. The dealer in money heretofore could
only indemnify himself when money was worth more than
5 per cent. by charging a commission on the bills dis-
counted, which pressed much heavier in proportion on the
short bills than the present higher rate of interest does.
(From the Morning Post.)

Sales of English Stock continue to be made by parties
anticipating an increased demand for money, and a conse-
quent reduction in prices, that may enable them to re-
invest at a considerable profit. The market has closed,
therefore, at a further depreciation of -4- per cent. Consols
were last done at 904- to 8 Money, and wa for the Ac-
count ; Exchequer Bills at Is. to 3s. Premium, and India
Bonds at ss. to 4s. Discount. It is proper to state here
that some very vigorous steps have been taken to avert or
mitigate the apprehended scarcity of money. 'The following
is an instance :

All bills accepted to-day by Baring and Co. were re-
turned with a note appended to them, stating that, if pre-
sented within certain specified hours on a future day, they
would be discounted by that house at four and a half per
cent. It is understood in the commercial world that this
will for some time to come be the established system of this
eminent mercantile firm.

(From the Morning He, aid.)

There has been no material alteration in character of
the Money Market, for commercial purposes ; all parties
are still looking, however, with the, deepest interest to the
proceedings of the Bank of England Direction, who are
understood to have again rejected some eminent paper, on
the score that the firm whese names were attached to the
bills, were in some degree connected with American money
transactions. How far the Bank Direction are justified in
this individual 'selection, they will have to answer for else-
where. A few months, nay a few weeks, will probably
show whether the Bank of England Direction have been
acting from the impulse of honest principles. We should
remark, however, that the extreme extent to which the in-
troduction of American paper has acted on the London
market, now requires all the skill of the Bank Parlour to
hedge themselves against consequences, of which they alone
were, as we have proved, the, original cause.
(From the Morning Chronicle.)
A very trifling alteration in the foreign exchanges is
noted to-day. So far us it goes, however, it tends to add
to the slow current of improvement which has gradually
manifested itself during the last fortnight or three Weeks.
Business in the Exchange was rendered much less active,
in consequence of the absence of the Jewish capitalists, who
were 'restrizined from attendance by their observance of the
religious festival by which they mark the commencement of
the new year.