The Sun.
London, England, 1840-12-24 00:00:00

EVENING EDITION.

MONEY MARKET and CITY NEWS.

(WEDNESDAI! EVENIXG.)
CHRONICLE.—The proceedings in the French
Chamber relative to the fortifications of Paris, with the
renewed reports on the Bourse about a loan, and the
strange story concerning the Douro question, have de-
pressed the funds. It is said, also, that a speculation of
some extent has been entered into in the corn trade, for
importation in the spring, and that orders to a consider-
able extent have been sent off to the various northern
ports. The grounds on which this speculation has been
resolved on are certainly precarious. They, of course,
expect to work up the averages before the na-
vigation is open, in order to force down the duties.
The success is doubtful, although the system of
averages is so unsound that it leaves wide scope for
such enterprises. The prices of wheats in the dif-
ferent Baltic ports range at present at from thirty-five
to forty-two shillirgs per quarter, and the expense of
transport here may be estimated at a further expense of
about 6s. It is said that the parties chiefly engaged in
the speculation are acting for Irish account, in which
country the wheat is likely to turn out deficient. If it be
true that large orders for grain have been despatched, the
consequent operations will produce a farther flatness in the
foreign exchanges, and carry off the bullion in the coffers
of the Bank.
Although the general opinion is that the misun-
derstanding between Spain and Portugal will ho ad-
justed through the friendly mediation of England,
and that the threat on the part of Spain, of in-
vading Purtugal, will not be carried into effect,
yet the menace held out by the latter country of
aiering into renewed hostilities, when the Government
Was engaged in an important measure of finance, is locked
ueo , as rash and injudicious, tending to destroy confidaace
to tne aienee and judgment of the Provisional Regency,
and thus adverse to the maintenance of their credit. The
accounts received from Portugal arc indeed so much at va-
ria.,,ee with the past conduct of the Spanish Regency, that
at they were not so specially detailed and corroborated by
the decrees of the Portuguese Government, for levying
-troops and putting the country in a state of defence, we
*Wald ba oisposed to doubt their authenticity.

fIMES.—The fall in Consols to-day, which was
steady hall per cent., although attributed to the distrust
occasioned by the preparations making for the expected
hostilities between Spain and Portugal, would, it is consi-
dered in some quarters, have been more limited had not
the j,,bbers been rather anxious to get rid of stock which
it would seem they had previously taken freely of the
brokers. _ _ _

A eorrespondent expresses surprise that, lately ad-
verting to the capital of a joint-stock bank, the sum
.of 35 000/ should have been considered a very small
sum, and treated as little more than a respectable
private bank ought to pOESCSF, adding his belief that
in the private country banks there are more capitals
und. r 10,000/. than above it. As there can be no
means of access to the secrets of private accounts, we
cannot say whether our correspondent is correct or
not in the fact stated ; but this at least may be
safely affirmed, that any private bank with a lower capital
than 30,000/ would cease, if it became known, to retain
the confidence of its depositors. Still, it may be added.
that nu imprudences like those not merely charged upon,
but confessed by, the Walsall Joint-stock Bank, of al-
lowing overdrawn accounts" to the extent of half as
much again as its capital, was ever committed by any
private bank. But it was the private banks of London,
lather than those of the country, to which the remark ap-
plied, where the truth confessedly lies so completely the
contrary way, that probably a single banking-house of the
city could be named with a capital equal to that of ail ttie
joint stuck banking companies of London put together.
some of them are sensible of the false glitttr they
present in this respect, and are calling for additional
capital ; but there prevails this objection to carrying
out the principle to the full extent—that the business of
the joint-stock hanks will hardly furnish a suitable dividend
to answer such increase of capital, and it must at once ba
admitted, that the increase of confidence which large capi-
tals would bring, might soon alter this state of things;
and it should always be taken into the account that small pre-
fits, with a certainty, are better than large profits with an
uncertainty of continuance. Some suggestions have been
made to the conductera of joint stock-banks by way of obvi•
sting this difficulty, that they should allow a portion of
their capital to be represented by Consols absolutely, and
the remainder either in money or in such securities as
may be deemed suitable by the Managing Directors, taking
a relative dividend in each, and reserving the capital held
absolutely in stock for any exigency that might occur. As
it is, the protection to the public in dealing with joint-
stock banks is far less perfect than it is generally supposed
to be.

The alteration of the usury laws is much complained of
by the class of small tradesmen, who say that they are li-
t.rally ground down by the working of the system. The
interest commonly asked fur short loans is from 40 to 60
per cent., and the slightest embarrassment to which the
tradesmen may bec-yme subject, almost infallibly becomes
the cause of crushing him altogether. The suddenness of
the change, since five per cent. was the maximum of
interest has not been one of the least causes of the
evil ; since from being able to obtain money at this
moderate rate, the tradesmen, within a few mnths,
lied themselves under the absolute power of money-
lenders, who have set no bounds to their extortion.
Nor is the change thus produced in the monetary
sistbn *wary confined to the borrowers, and the diffi-
cultly; to which they are subjected by being exposed to
the extortions of professed usurers, but an important effect
is produced in the change given to the direction of ca-
bal ; since the rate which money can command in the
-4 of Oil vestriction on usury, is found to be con-
•-•.• ;ha* hny profit which can arise from cm •
•- commercial pursuit. It is even
' -4 the effect of deadening
between men
--d by

Soso.._.

stder.bly
barLix it
sal l 6be,mesest system has
the irioadk which formerly embus_
of bitsjbc:sl; snit that the tempting profit to be gas—
, usury fins 'induced many, who would freely have lent money
at pgshapo no interest at all, to seek for a source of advan-
toge it the misfortunes of their neighbours. A correspond-
ent, who has written a lettor on the sulsject, goes so far
as to say, that many rich tradesmen have altogether with-
drawn their capital from business in order that they may
employ it at exorbitant interest, the profession of usurer
being tree from all trouble while it is by far the most pro-
.hle. The feeling seems to be not so *lb against all
of the former system, but that sate more gradual
modification should have taken place, and that the alters:
tion has gorse too far. It is curious to observe ii
stance, the difference that there is between an unrestricted
trade in money and one in commodities, since whereas
liberty of c immerce produces results univotsally beneficial,
this absolute liberty in fixing a rate to capital is found to
be productive of nothing but ruin to all the smaller classes
of traders.

POST.—The markets for the public securities were
exceedingly flat. The dulness which existed is ascribed
chiefly, but not exclueively, to political causes. The state
of the exchanges is such as to load to an apprehension, on
the part of the commercial interest, that the Bank Direc-
tors may shortly become more sparing in their discounts,
which is certainly not at all impossible ; but there is an ex-
pectation, by which many are guided in their money ar.
vangements and dealings in the fuaded securities, that a
fresh issue of Exchequer paper may take place at no very
diatant period. The unsettled aspect of affairs on the
Continent, as well as in the Peninsula, continues, no
doubt, to exercise a depressing influence on prices. It is
understood, moreover, that, independently of the specula-
tion known to be going on in the corn markets of the
north, the borne supply of grain is, after all, essentially
lower than has been commonly reported and believed. It
is now fully admitted by well-informed persons that the
deficiency of wheat alone will prove at least 1,000 qrs.

SUN.—There has been a run of speculation in Con-
sols to-day, and, favoured by the various reports in circu-
.lption respecting the probability of England being
draved into the dispute between Spain and Portugal as an
active ally of the latter, oa account of existing treaties, a
further decline was brought about to the extent of nearly
per cent. , In the morning Consols brought 884, gra-
dually receded subsequently to 88i to 88k, and closed at
684 to 681. Various opinians and conjectures are 'hazarded
with regard to the probable issue of the Douro business,
but, after all, they amount to nothing more than conjec-
ture. There are parties who incline to the side of Spain,
and think that Power fully justified in the line of proceed-
ings it has adopted, as the only means of bringing matters
to an issue ; while others imagine Portugal to have been
treated with indignity by the threats and menaces indulged
in against her. The free navigation of the Douro is
pretty generally admitted to be a question of some com-
mercial, importauce to England, but epinions are by no
means unanimous as to whether the advantages we might
deriie from it, are worth fighting for, especially as the
natural ally of Spain would ho France. Exchequer Bills
were Steady to-day at 2to 4 premium, and India Bonds at
lb discount. Bank Stock was dull at 157, the Reduced
Three per,Cent. Annuities declined to 881 to 88i, and the
lbeee-and-a-Half per Cents. at 97vi to
The principal bargains in the oreign Market to-day
is been in Spanish and Portuguese stock for the Account.
There has been a further depression in the value of each,
viz, in Ole former from 23i to 22i, and in the latter from
aj4to 301. Colombian Six per Cents. have been heavy
223 4 Mexican Bonds at 26; Chilian at 56, and
pAtajwo-nnii-a- Half Cents. at 501; French Three per
Cents( improved to 77f. 50c.
The ,Shace Market has been declining to-day, being
dfft.cted by the condition of those for the public securities.
There was not,a large amount of business doing, but the
saiez made were only at a trifling decline. Great
"Western realised 244 to 25, the New 101 to 101, and the
Fifths, 61; the London and Birmingham, 793, the New,
2di to 25 ; the Manchester and Leeds,
~...4to 41, the New,
2; the South Western,
151; and the Greenwich scrip,
If to l 3 premium. Brighton were marked 'q to
15 pr
dis-
remium
count, and Eastern Counties debentures, 2i emiu
p m.
Australasia Bank shares were at 14i to
London and Westminster Bank at 33 premium, and Pro;
-
vincial Bank of Ireland at 19 to 194 premium.

The parish church of South Hackney, in which i
has so fr,quently been raised the cry of " Church n dan-
ger," very narrowly escaped destruction on Sunday night.
lietaeen twelve and one, the policemen on duty observ-
ing a Feat glare through the windows, gave an alarm, when
a portion of the fl,oor and the pews surrounding the stove
were discovered to be in flames. The police and parish-
officers succeeded in getting the fire under before any of
the London engines arrived. The damage is not very
serious.

-----
The Governors of Harrow School have sanc-
tioned the extension of the Christmas holiiays from the
13th to the 20th of 2anuary, on the joyful occasion of the
birth of the Princess Royal.
SKATING.—This graceful and healthful amuse-
ment WAS never more practised than since the present frost
&forded opportlitty for engaging in it. Prince Albert,
who is a preficcot in the art, is daily on the ice formed on
the ornamental water in the grounds of Buckingham Pa-
ace...•Globe.