The Sun.
London, England, 1840-12-17 00:00:00

MONEY MARKET and CITY NEWS.

(WEDNESDAY EVENING.)
C HRONICL E —This was settling day in the Foreige
House. The fluctuations in Spanish Stock have not mud
exceeded 1 per cent. since the last account, the highest
quotation having been 242, and the quotation to-day 23i
to 4, being the same quotation as on the last settling
day. In Portuguese Bonds a fall of nearly 2 per cent.
has taken place during the same period ; but in the other
Foreign Securities no material alteration occurred until
this morning, when a fall of nearly 2 per cent. took place
in Colombian and Mexican Securities ; but towards the
close of business they were rather better again.
This sudden change fcr the worse in South American
Stocks
was caused by accounts of revolutionary move-
ments in New Granada, and of a law passed by the Mexi-
can Congress for a loan of $2,000,000 upon the 17 per
cent. duty, in order to raise the means for enabling them
to regain power over Texas. We regret much to find
the prospects of the Colombian bondholders so unex-
pectedly depressed after the more satisfactory position
in which they were recently placed in consequence of
the acceptance of the Venezuelan decree. That pro-
vince was represented as still tranquil at the date of
the advices, but no confidence can be entertained of the
power of the executive to maintain themselves in the
face of the mischievous example presented by their
neighbours. It is melancholy to think that such
fine countries as those which form the three estates
of Colombia should be exposed again to anarchy.
They possess navigable rivers, and rich variety of genial
soil and climate ; but with all these advantages it is pretty
evident that they arc barely capable of self•government.
The state of Mexico is, if possible. worse ; and the mad
effort of attempting to bring back Texas under their yoke,
after that country has been acknowledged as an indepen-
dent state by England, France. Holland, and Belgium,
forms a characteristic finish to the whole affair. It is stated
too, that General Hamilton, the Texian envoy, speaks con-
fidently of raising a loan for his Government. Holland,
we presume, is the market where he expects to raise the
money. The counter loan of two millions of dollars, by
Mexico, has been got up perhaps as a counterpoise to this
financial operation of the rebellious Texians. The Mexi-
cans, we trust, will keep their new bonds at home, or send
them to any market except that of London.

POST.—The Foreign Funds were generally depressed
this morning. Colombian fell considerably, owing to a
report contained in the American Journals of another re-
volution in New Granada, and the splitting of the Repub-
lic into a variety of minor states, an event which could not
but interfere prejudicially with the execution of the late
arrangement for the liquidation of the debt of Colombia.
The Mexican Bonds have also given way.
It seems to be expected that the exchanges will be lower
again on Friday. This apprehension furnishes occasioe
for a few more remarks on the financial prospects of the
country, and the condition of the working classes.
Little sympathy is felt for a sangune man who, in
the hope of making at a dash a princely fortune
blindly embarks what property he has in a foreign
loan, and loses all. Such a person is thought to
have received the reward due to his folly, and no
concern is expressed for the fate of his family who,
front a state of affluence and comfort, may have been
reduced to one of wretchedness and destitution. Yet
those that are familiar with the history of the loan-jobbing
system of the last thirty or forty years must have hundreds
of cases of the sort within their recollection. These, how-
ever, are but the immediate or more palpable results of
unsuccessful speculation. The mischief arising from the
inability of a speculator to discharge his private debts is
less apparent. It nevertheless occurs. Respectable
tradesmen and others have often been losers of large
sums of money by an unlucky Stock Exchange ad
venturer; but there are yet remoter evils of vast magni-
tude which are fairly chargeable upon the system. 'These
are evils that vitally affect the interests of the poor ; aria
why the nation should still be subject to the nuisance i.;
more than any one can discover, unless it be on the ex-
ploded principle contended for by a party in Parliament,
that " the pursuits of individuals are not to be interfered
with."
It was considered at the time, aed recent events have
served to confirm the public in the conviction, that the
propriety of the stand made six years since by a portioe c f
the press against an unrestricted trail ! in stc.clae was veri-
fled by tire subsequent necessity to which the Beek ,i
England was driven of soliciting a smell loan of gold from
the Bina of France—a loan whecessith to answer certain
temporary demands, cue of the more pressing of which was
occasioned by an incessant influx al foreign bonds. This
was surely a proceeding calculated to wound the pride of
(very right-thinking Englishman ; yet no one car
justly find fault with. the Directors for the step
taken. The stock of specie is now, as it has
long been, out of all proportien with the liebiliries of
the iastitution, and, as fresh credits heve been opened
in tire continental cities by the negotiation of more loans,
the Directors arc ahwarted of course in their efforts to
rectify the exchanges. This, however, is the game of the
contracting, houses. A ripper credit is established by
means cf a loan out of which they make perhaps 10 per
cent. in premiums, commissions, Sse. This being done, a
field is opened to them for a series of profitable operetiees
in the precious metals, which prove so embarrassing to
the Batik, and so destructive to our comae:rec. The note
circulation is reduced at tire present time to a limit quite
unprecedented of late year!, and the trade of the country is
unavoidably paralysed, lest the few remaining sovereigns
should also disappear ; for tho delusion of k.eping gold,
as a test of prices and the balance of trade, is persevered
in, though the hataixes of modern traces are, as v.e nave
shown, made up of foreign bonds.
And is the Bank of England, it hill be naked, still to
be left in the miserable state of dependence we have de-
scribed ? She might be able, in defiance of foreign lore-
jabbing, to set herself right, as formerly, were the issuing
joint-stock banks in the country compelled by the Legis-
lature to close their doors, or the power of creating notes
were taken from them, though nothing so important as this
is to be accomplished without an interminable struggle.
But few will considee that the measures of the Directors
of the Bank of England ought for ever to be baffled by the
rigs of Capel-court. If the argumeht that " the pursuits
of individuals arc not to be interfered with" is to be held
applicable onlywlicre such pursuits arc not incompatible with
the welfare of the community, there can be no great diffi-
culty, it is presumed, in putting the concacturs of loans
under a salutary restraint.
A Liverpool merchant again addresses us upon the sub-
ject. His letter illustrates. through the forcible medium
of example, some of the effects produced by a foolish tole-
ration of foreign loans :

TO THE EDITOR OP THE MORNING POST.
Sir,—ln reading the City article in the Post of this
morning I observe that there are rumours of loans to a
large amount about being contracted for in this country,
which, if such be really the truth, must of necessity 1-pa
met by the Bank of England adopting effective measures
to neutralise their action on the currency. The present
scarcity of 'money, with the prospect of its continuance,
is beginning to show itself in the most appalling mar-
ner, and nowhere more than in the town of Leigh and
neighbourhood of Manchester. At this season of the
year thousands have been employed there in preparing
a certain description of goods for the spring trade, and
which, being got up at an extraordinarily low rate of
wages, assured the manufacturer of an undeviating market
early in the new year ; but, in the present state of cur
monetary affairs, he is afraid of locking up his capiti:i
for so long a term. The chances of the poor weave:-
earning his scanty pittance are thus consideraVy dimi-
nished, if not entirely dissipated. A corresponding num-
ber of cotton-spinners are necessaiily thrown out of em-
ployment, of whom at Oldham alone there are at this
moment upwards of seven thousand. But what can be
said, Mr. Editor, to extenuate the conduct of those who
must he looked upon as the original authors of this
wide-spreading misery ? Why, it is well known that a
considerable sum is appropriated every year to the manu-
facturers of Belgium under the designation of primes
&exportation, which enables them not only to meet us
in the foreign market, but in many instances to undersell
us. Can anything be more preposterous than furnishing
foreign nations with the means—l would hope unwit-
tingly—of starving our industrious population, es well as
sacrificing the dearest interests of the country ? Let us
hope that Government will not defer any longer adopting
effectual measures to eradicate this plague-spot of Great
Britain. I am, &c.
Liverpool, Dec. 12. MERCATOR.

SUN.—The funds closed heavy to-day. Consols for
opening at 88i to Bank Stock at 1561 ; Exchequer
Bills at Is. discount to Is. premium ; India Bonds et
Iss. discount ; and the Reduced Three-and-a-Half ptr
Cents. at 97 to
The half-monthly account was adjusted to-day. The
general balances were not heavy, Spanish having alter-
nated only from 23.1 i to 241, and Portuguese New Five
per Cents. from 34/ to 33?-, ; Colombian fell to-day
uo less than 11 per cent., owing to the accounts re-
ceived of an internal revolution in New Grenada. The
current quotations of the 1824 Stock were 24 to 234.
Mexican Bonds realised 271 to 28 ; Brazil Stock was
depressed to 711 ; Belgian Scrip was 1 premium ;
Russian Bonds for the Account touched 113 ; French
Five per Cent. Rentcs were at 111 ; and Dutch Fire
per Cents. at 971.
Shares were not animated. The Grcat Western
ranged from 23 to 22 ; the New from 9 to 91 ; and
the South-Western from 14i to 14i premium.
Brighton were Si to 9, and Blackwell 41 discount.

SPIRIT of the PUBLIC JOURNALS.

FROM THE MORNING PAPERS OF THIS DAY.
(From the Morning Chronicle.)
We publish to-day the completement of the cor-
respondence between Commodore Napier and the Mi-
nister of Mehemet Ali, previous to the signature of
the convention. One passage in the letter of Commo
dore Napier strikes us as calculated to throw some
light upon the intelligence from Constantinople, which
we published on Tuesday. Commodore Napier ex-
presses his regret at learning that same additional
troops had been sent into Syria, for this he feared
would be interpreted at Constantinople into a disposition
on the part of the Paella to protract resistance. And
so, meat probably, it was interpreted, to which we mar
very naturally asetibe the renewed deposition of Me-
hemet Ali. We stated on Tuesday that when the
Porte took this step, it could not have been as vat awara
lo)eridipic.e.rmiwttehden
either of the submission of the Pacha, or of the desire of
the contraettne parties to the Treaty of Landon that
tobotilh"thtels':
c known at Constantinople, we can scarcely
Mehemet All.,,7s,nit,tigletti,
fPacatcsliab:ciccoomf
.* temptations toed "
this solution the ques.wn. emp‘atinns to adopt
suppose that any further opposition will be er.
an extreme course are undoubtedly strong, Hod the in-
citement perhaps still stronger. But, after all, may not
by pursuing more moderate counse s 10 tmt e
he-
every object of prudent and num nletjpoliey
lbe