The Sun.
London, England, 1840-08-13 00:00:00

AMERICAN SUB-TREASURY BILL

(From the Times.)

money market for some time past. The calculation is,
that they produce rather mole than 4 per cent. at pre-
sent
for the money invested, which the general reluct-
ance
of trustees and others to place capital in that de-
scription of security is not sufficient to account for,
especially as the public companies and corporate
bodies of large means are vigilant enough in general
in changing its position to the quarter in which its
production will be greatest with equal security. Hence
another explanation has become current of the low
quotation referred to, which is, that the measure
of disposing of the " dead-weight" has again been
, t
brought under discussion in the Bank parlour, with
I , the .urther understanding that, if it is offered, the pub-
lic may have it at its fair market value, and will not be
trifled with, as they were on the last occasion, by mere
demonstrations of sale without any real intention of
carrying them iato execution. That value would then
be a :justed by the proportion the " dead weight "
would bear to other securities of the same class in
circulation, and the object of those who intended to
purchase would be best answered by keeping down
their price, not to mention that the prospect of so
large an additional supply would naturally of itself,
and without any effect, keep down the price. What
truth there is in that supposition remains of course
to be seen, but the necessity of some sacrifice of that
kind on the part of the B ink is very apparent from
the continued low rate of the foreign excharees,
which threatens another exportation of gold, an 1 it
is understood that the Bank Directors who have been
under examination before the Select Committee of Ihe
House of Commons have had some pretty plain hints
given them that an application to the Bank of France
for assistance is an experiment they would do well not
to repeat. While the dread of that Committee, which
is a most salutary one, is in full force, we are tolerably
sure of good principles and prudent conduct on the
part of the Bank of England.
The accounts from New York received this morning
attest strongly the favourable working of the Sub-
Treasury Bill, at least in the commencement of its ope.
ration. By this law, as already stated, one-fourth of
all Government dues is to be paid in specie at once, and
one-half after June, 1841 ; yet it had created no scar-
city of specie in the market ; on the contrary, it was
almost a drug, and Treasury notes bore a premium of
j to i per cent.

SUN.—There was a slight reaction in Consols to-
day, owing to sales being effected to some extent, pro•
bably w,th the view of realizing profits on the late great
advance in prices, it being notorious that many parties
having no permanent stake in the public funds, came in
at the low prices with the sole object of making money
by the folly of the alarmists. Consols closed at 91:1
for immediate transfer, and 91t for the account. New
Three•and-a-Half per Cents. declined to 99i and the
Three per Cents. to 91i. Exchequer Bills remained
at 26 to 24 prem.

The speculative operations in the Foreign Market
were comparatively trivial, except in Spanish Bonds.
The Actives receded from 26 to 26* for immediate
delivery, and from 268 to 26* for time. Portuguese
Five per Cents. went as high as 338, but the Three
per Cents. were only at 221 to 4. Mexican Bonds fell
to 292, and Colombian to 258; but at these quotatioas
not more than one bargain was reported in each in-
stance. Belgian Bouds rose again per cent, being at
1042 ; Dutch Two-and a-Half per Cents. were steady
at 521 to
Tne Railway Shares all took a lower range to day,
sales being pressed at the reduction. Great Western
left off at 324-, New at 14, Hull and Selby at 3, Bir-
mingham quarter at 22, and Blackwell at -a pre-
mium. Great North of England were 11k, North
Midland 11, and Birmingham and Gloucester .54 dis-
count.