The Sun.
London, England, 1838-12-29 00:00:00

MONEY AND CITY NEWS.

(mom THY MOANING PAPERS OT THIS DAT.)

CH
RONICLE. —Thereis scarcely any alteration to notice
to-day in the appearance of i'he English stock market. It con-
tiuues firm, with not much business going on. Consols for the
opening closed at 94 to it ; Exchequer Bills, 64s to 66s prem. ;
and Bank Stock, 2021 to 203 i.
Considerable uneasiness, we understand, is felt in the mo-
netary circles in Paris as to the present position of commercial
and financial matters in France, and the apprehension that a
critical state of things is at hand has been much increased by
the fact that Laffitte's new Joint Stock Bank has been com-
pelled to fly for succour to the Bank of France, and to obtain
a loan of many millions of francs from that institution as the
only possible means of preventing suspension of pay-
ment. We were in some degree prepared for this an-
nouncement, for things in general in France have worn
a very unfavourable appearance for some time past, and
it is notorious that the wildest speculations imaginable
were entered into greedily by the French public in ge-
neral, especially by the Parisians. The dangerous state in
which Laffitte's bank was and is placed has arisen entirely, we
are assured, from having encouraged these reckless specula- '
tions, by advances upon shares of all kinds of ridiculous under-
takings. The difficulties for the moment, however, have been
overcome, but solely by the interference of the Bank of France,
and therefore it is still a matter of doubt whether the bank can
continue its operations for any great length of time. Had a
sudden stoppage taken place, an eventful state of things
might have been brought about, more especially as it is
very commonly thought that a derangement, or confusion,
in the monetary or commercial affairs of France would be
the forerunner of political movements of an extended nature.
The Government, it is stated, is also under the same impr( s-
sion, and therefore did everything in its power to meet the de.
mends upon Laffitte's bank. There is great fear also that
some of the leading moneyed men in France have been in-
volved either by advances upon the shares, or from being ac-
tually concerned in the wild schemes for aggrandisement, and
therefore we should not be surprised if Paris became shortly
the scene of unpleasant events in every point of view. A
communication from Paris was received yesterday at the Bank
of England just after the breaking up of the weekly court,
which threw the remaining directors into a state of great alarm
—but whether it had reference to Laffitte's bank or any pri-
vate firm, we have not yet been able to ascertain.

TIM E S.—The advances made by the Bank under the no-
tice of the 29th ult for temporary accommodation, are under-
stood to have. reached a much larger amount than usual, and
the pressure for money generally is so great, that apprehen.
sions are beginning to be entertained of serious inconveniences
if the Bank should strictly enforce the condition of the repay-
ment of the whole of them on the 1513 of January. Besides
the advances upon bills of exchange, they arc said to have
made large loans of late upon Exchequer-bills and other secu-
rities. The Bank Directors are not very likely, however, to
refuse further time ; but those who apply for it must look for
an increase in the rate of interest now charged,
which the state of the Money Market will in that
case justify. . But they will risk the danger, on the other
h nd,
of
banking, of being gradually brought to make these tem-
poraryadvances permanent, than which, as a princi-
plenothing can be more unsound or mis-
chievous. The only legitimate process, as part of a regular
a
system, is that of discounting bills absolutely, and suffering
them to run to maturity : these loans, which are to be had
under such an arrangement as the present, for a few days, are
sure to become an encouragement to stock-jobbing and specu-
lations of that class.

.-.One of the features of the Money Market at this time
which is worthy of notice is the disposition to purchase an-
nuities, or change the form of investment from stock into
annuities rather than hold stock, and the preference is given
to the shorter description of annuities. This evidently arises
from a distrust, which must prevail to a considerable extent, in
the maintenance of the present prices of the funds.
The exchange on Paris, short, was quoted this afternoon at
25. 25 to 30, which is the lowest we have had for a very long time.
A further decline, and that a considerable one, is generally
looked for. The orders sent out for foreign grain, not wheat
only, but all other kinds, are very large.

HE RA LD.—The Money Market, so far as regards the
rates of discount for pursoses of international commerce, has
not undergone any alteration during the past week; but there
not only with the public, but also the
ne
that the value of the British securities is
basedinmsootasttarroyng i
iniipteeoernleisnatgsfoundation which will render the late rates
permanent. For this opinion there are several pre-exist.
ing causes; the first arises out of the circumstances that
the almost present duty upon foreign corn, entered for
importation, has so turned the tide of the exchanges
against this country, that it has caused, and will cause,
large exportations of the precious metals, particularly silver,
from this country to the Continent, for some time to come.
The next cause for this declension in the value of the
British Funds arises out of the anticipation that the revenue
for the quarter ending on the sth of January next will
be but of a " Flemish character;" to which the present
fluctuating duties upon the importation of loreign corn have
been no trifling auxiliaries, which again has forced upon the
notice of our practical men of business, both commercial and
agricultural, the necessity of a fixed rate of duty, which, as
the subject will be mooted during the next Session of Parlia-
ment, is considered, by well-informed parties on both sides of
the question, ought to range permanently at about 15s. per
quarter upon wheat, and in proportion upon all other descrip-
tion of grain.
The transactions in the continental exchanges have been but
limited, inasmuch as money has been more plentiful than bills,
and silver has become a cheaper medium of remittance against
the late importations of foreign grain. On Paris the rates
are quoted at 25f. 50c. a 55c. ; on Amsterdam at 12f. 3st. a
31 a f st. ; on Rotterdam 12f. a 12f. 3,1-; on Antwerp 12 21;
on Frankfort 1501 a 151 ; and on Hamburg 13 8f a 13 9.

POST.—Rather more money was paid for foreign bills
again this afternoon than on the last post day. Paris was
done at 25 55 to 50, Hamburgh 13 9to Bi, Amsterdam 12 3
to 4. Frankfort 1501 to 1, and Antwerp at 12 2i. Some
few persons seem to imagine that this continued decline in the
Exchanges may have the effect of disturbing the monetary
affairs of the country. We cannot find, however, that well-
informed commercial men participate in the smallest degree
in this opinion. The late advance in the price of grain
may possibly have caused a demand for a somewhat
larger amount of bills than usual, and as the supply
of the latter has been so very limited of late years,
such a circumstance at once explains the grounds upon
which the seller exacts a more favourable rate. The Bank of
England are at present so abundantly rich in the precious me-
tals, that they would doubtless consider it a positive relief to
have a couple of millions of sovereigns taken from them. The
enormous mass of gold which they now hold must, it is obvious,
have become a burthen that is attended with heavy loss to the
proprietors, and why, we may ask, should the Directors be
averse to the exchange of a limited amount, as that must ne-
cessarily be which is remitted to the Continent for grain, for
securities upon which they may obtain the current rate of in.
terest ? But the Bank cannot hope for any such outlet for
their superfluous accumulation of treasure. The ports of
the corn-growing countries in the north of Europe are
by this time all frozen up, and, let the price of wheat
go to what point it may in our markets, no mere
cargoes can be sent to England till the spring of next
year. Speculation will in the meanwhile, in all pro-
bability, subside, as few houses will be so improvident as to
risk their property on an assumption of what may or may not be
the average at so remote a period. Had our foreign trade at
the prevent time, been anything like what it was before the
termination of the ionlo preeauti,n os thr ti;
hank El:gland
at that day, deeply interested in the tr4nsactions of the Con-
tinent with the various colonies of the world, and the extent