The Sun.
London, England, 1838-12-14 00:00:00

MONEY AND CITY NEWS.

(FROM THE MORNING PAPERS OF THIS DAY.)

TIMES.—As a result of the notice for temporary ac-
commodation at the Bank issued on the 29th ult., it may
be stated that very few applications have been made for
advances on the security of Exchequer Bills and India
Bonds, since money could have been obtained on them in
the interval which has elapsed on lower terms. Much
available capital has been indeed at hand for such purpose,
sometimes as low as 21 per cent., and never higher
that: 3 per cent., while the Bank requires 31 per cent.
to be paid for such loans. The Directors have therefore
departed from a very important principle in the manage-
ment of their affairs without deriving any advantage from
so doing. In the commercial discount market, on the
contrary, which is their legitimate sphere, the accom-
modation has proved useful, and has been profited by,
as is understood, to a very considerable extent. This
should be a warning to keep to such a course in fu-
ture. The loans, if judiciously managed, and founded
on actual business, the most secret operations of which are
within their reach, cannot be attended with any serious
risk whatever, and should it be required, in order to guard
against too great an exportation of gold, or the effects of
over-speculation out of doors, to curtail the issues, they
have only to restrain the discounts temperately and care-
fully, and the whole, or any part, will gradually come back
to them without creating the least alarm in the public mind,
to which any sale of Government securities by the Bank
would infallibly lead.
Altogether, from the state of the foreign exchanges,
and particularly those on the North of Europe, there
must be some drain on the country for gold, which of it-
self will curtail the circulation, bank-notes being the me-
dium by which it is to be obtained, and thus increase the
utility and the safety of those facilities especially devoted to
commercial purposes. 'l'he Bank of England is consequently
kept in as safe a position as can be desired, but it would ap-
pear from many circumstances which necessarily fall under
the observation of the money-dealers in this market,
whither, as to a common centre, all great transactions
tend, that the joint-stock banks of issue in most parts of
the country are running a race of competition in getting
out paper, and that they exercise no sound discretion
whatever in the nature of the security taken for it. In
the event of a sudden alarm or pressing demand for money,
few of them, though substantial enough at bottom, would
be found immediately convertible, and it need not to be
told to those acquainted with the nature of banking, that
no capital can protect against a run, unless employed in such
a manner as to be readily called in again if wanted. If
this is the case with the English Banks, those in Ireland, if
the information of the best money-dealers is to be taken,
are in a still worse condition, while the (chartered) Bank
of Ireland, like that of England, is playing a cautious and safe
game. None of the Joint-stock Banks are to expect, therefore,
that they will receive aid,if a storm should come on, from either.
What occurred in 1836, in the memorable affair of the
Northern and Central Bank, cannot be relied on as a safe
precedent, for it is well known that among the motives for
the support then given, good will to the parties had no
share, and that the fear of consequences elsewhere was the
true cause of the interference. 'Were it even otherwise,
the Bank Directors complain, and with justice, of having
been disingenuously dealt with and deceived in the whole
of those transactions, and may fairly enough determine in
future, if they deem it safe to do so, to leave these indis-
creet dabblers in paper issues to their fate. In some quar-
ters this will be taken as a timely and salutary caution ; in
others it will be ridiculed as unnecessary ; but it is proper,
nevertheless, to give it.
Since the formation of the German customs' league
the inclination of Prussia to induce the different
states composing it to adopt as an uniform basis of
currency the Prussian coinage and to establish a
Prussian paper circulation has been sufficiently ap-
parent. The project does not appear to have yet suc-
ceeded, as a good deal of jealousy naturally exists
with respect to the virtual transfer of that portion of the
rights of sovereignty which consists in a control over
coinage and circulation. In the meantime the Prussian
Government is adopting cautiously all the preliminary mea-
sures for attracting to Berlin as a centre the money busi-
ness of Germany. After a recent announcement by the
Administration of the Public Debt, that on the 2d of
January it will be redeemed or paid off to the amount of
831,000 thalers, there is a notice that the Royal Bank of
Berlin has come to the determination of opening to the
mercantile community " accounts current," by means of
which those who choose may place gratuitously bills of ex-
change, daily falling due, or certificates of public funds.
In case the holders have occasion for the amount on or be-
fore being placed to account, the Bank will advance to the
extent of 90 per cent. on Prussian stocks, and 75 per cent.
on foreign funds, calculated on the prices current of the day.
In this manner, it is stated, facilities will be afforded to
commerce at any moment for procuring funds on deposit
of state stocks.

CHRONICLE.—There has been a strong impression
in the City to-day that the Dutch and Belgian question
will not be settled without having recourse to arms, and
this feeling has been much strengthened by the accounts
from Holland and Belgium, which state that on both sides
reinforcements were marching to the garrisons on the
frontier. This occasioned some uneasiness in the English
Stock-market. Exchequer Bills remain at 645. to 665. prem.
We have received from a well-informed correspondent
the following communication, on a subject alluded to in the
City article of yesterday :
" The remarks in the Chronicle of this day (City article)
on the subject of the Coffee duty, exhibit a very incorrect
view of the case.

" The duty upon coffee certified to be the produce of
British India, was, previous to the 9th September, 1835,
9d. per lb., and not Is. 3d.; but since that date has been
only 6d. per lb., the same rate as is paid on %Vest India
coffee. Since this reduction the quantity imported from
British India has been nearly doubled, having been in 1835,
5,858,6501b5., and in 1837, 9,915,7091b5., and there is good
reason for believing that the quantity may be increased
almost indefinitely. It takes about three years to bring a
coffee plantation into bearing."

HERALD.—The advices which have been received
from Holland and Belgium to-day, as well as those which
have arrived in the course of the past few days, have ac-
quired much more interest here, in consequence of their
continued reference to the celebrated Luxemburg question,
which seems to be as much a point of questio vexata as it
was a year since. In fact the accounts are altogether looked
upon as decidedly warlike on the part of the Belgian Go-
vernment, since the Minister of War has demanded a con-
tingent of 111,000 men for the army, and a levy of 12,000
for the year 1839, of the Chambers, haring also given
orders for arming the citadel of Antwerp and the sur-
rounding forts. It is also stated, on the authority of
a Belgian correspondent of the Handelsblad, that the
Minister of War would demand a credit of 12,000,000
of francs from the Chambers, which amounts to about
480,0001. sterling, at par, in lieu of the credit he had
asked of 3,500,000 francs, to be raised by an addi-
tionaltax of 10 centimes upon taxable property. The larger
credit is to be raised as a forced loan, by compelling the
landowners to pay a year's additional land tax in advance,
in exchange for which they will receive Treasury Bonds
to circulate throughout the coming year. The movement
of a portion of the Belgian troops upon Maestricht has also
created much attention here, whilst the arrival of the in-
augural address of the King of the French to the Cham-
bers on their meeting is also anxiously anticipated, though
it is expected that Louis Philippe will throw the onus of his
real but masked intentions respecting Belgium upon the
Chambers. These circumstances, as our monetary com-
ments will show, have had the effect of causing more hea-
viness in the British Funds and the Dutch Stocks, inas-
much as it has created more than usual uneasiness.
The aspects of our Corn Market are by no means en-
couraging to the capitalists of the Money Market, however
they may be to the prospects of the speculators in corn.
The state of affairs on the Continent has had very con-
siderable influence on all the foreign securities, and there
appears to have been a great desire on the part of the pub-
lic and jobbers to get out of stock.

post --The aggregate of the wheat averages, as de-
clared to-day for the regulation of the duty, was 735. per
quarter for the week ending the 7th instant. The ports
are consequently again open to the importers upon the pay
of the nominal rate of Is. per quarter only. The aver-
age for the week ending the same day was 7.55. 6d. per
quarter.
It had been expected that the rate of duty estab-
lished by the averages just struck would be 2s. tad. per
4-44rter. Few persons seem to have anticipated a return
tie the lower rate until next week.
The funds have not been so favourably quoted to-day‘
The news from Belgium seems to have thrown adamp upon
the markets, “§1 in addition 101144 has been said of the rais-
ing of a forced loan, we find it stated in the Antwerp papers
• 's date, that the War Minister h 1 •
of yesterday a( ;;skke
orders for the immediate fortificatiotl of thi; ciiadel at that
place, and of thapeighlooring lOrtq, as well as all others
tbrgughgut the 14,g,(10m. It appears also that the army
is to be very considerably increased. Conse.l',', 'Aeitt
93i to for the opening, E.xcheqneil 449 at 645. to 665.
P rem., and 1344 Stock at 90. T
In the Vgreign Market Outch Five per Cent. stoOk.
was done at IclOi to and Belgium at IN
decline in the foriner does not exceed if per Cent., but in
the latter the variation is full per Cent. on the closing
price of yesterday. Active Spanish Bonds, with the over-
due interest, were done at 16 to Five re; -i'Ortu-
, 4,
ThceF prcr pent. -ditto 10 to qpd Dra-
-77'10
Great Western Railway Shares were quoted at 101 to
11 prem. ; London and Brighton 3i to i discount ; Lon-