The Sun.
London, England, 1846-02-09 00:00:00

AB On

MONEY MARKET and CITY NEWS;

(From the Olverver.)
It is now very many weeks since, writing from the
information derived from practical and influential men,
that it was stated under this head that the fall in the
values of the Public Securities could be but of a tem-
porary character, and that the attempt so zealously made
to excite alarm by a leading daily contemporary would
turn out to be at least founded upon great exaggeration.
Furthermore, it was stated that, upon all reasonable in-
ferencos, and with the general reservation that peace and
tranquillity should not be interfered with, either as
respects home or foreign relations, the quotations of the
Public Securities would rapidly ascend to the high point
paid before the forced panic in the railway world was at
its zenith. And very nearly has the opinion then ex-
pressed been realised. Consols have this week advanced
almost continuously, and have attained a value within
1 per cent. of that realised ere the deposits upon new
railway projects required for completion that nume-
rous sales of Stock and Exchequer-bills should be made.
Hence the reaction in Consols, &c. of about 5- to 6 percent.
upon a value acknowledged to have been high, and out
of all proportion to what was the rate of interest upon
the first class of commercial paper. The most extraor-
dinary fact in reference to the state of the Money Mar-
ket, and as exhibiting the fallacies of the assertions of
the panic mongers, is that with deposits daily, and al-
mo-t hourly increasing at the Bank of England, on be-
half of the managing body of fresh railways, amounting,
according to the last returns, to about 11,000,0001 e re-
mains to be recorded. This large amount of capital,
until the last eight and• forty hours, or the great bulk
of it, h s been actual'y kept hermetically closed up,
&ther in the hands of the private bankers, or in the poa-
scs ion of th© directors of the Bank of England. And
how is this fact established ? Why, by a reference to
the last Bank returns. It appears that under the head of
"other deposits" in the weekly return from Vie Bank,
there wee not less than 17,000,0001 and over, and with-
out producing anything like a panic in the Money Market,
or requiring any measures of a coercive tendency on the
part of the directors of the corporation. The chances now
are that ere the month of April arrives the Three per
Cent. Console will again touch par. Mercantile men.
however, it must ba confessed, are not very anxious now
to operate with vigour, nor will they do so until the new
measures of the Premier be carried out, and hence there
are much larger balances in the hands of bankers and
the diacount houses than is usual at this season of the
year. And the same remark will apply to and account
for the present condition of the Stock Markets, but only
to a limited degree. The present favourable aspect of
the Funds, may in truth be stated in a few and concise
words. As the dealine was occasioned by sales to pay
railway deposits some months since, and as re-invest-
ments have been recently commenced, the present
supply is scarcely equal to the demand. Most
especially, too, ought it to be borne in mind that
all fears of a panic and a consequent necessity of the
screw being put upon the ( irculation, have for some time
ceased to operate upon the minds of bona fide fundholders.
Tho almost daily purchases of the G. vernment Brokers
—say to the amount of from 21,0001. to 22,0001, in
diminution of the Public Debt—on behalf of the Savings'
Banks (5,000/ on each Transfer Day), and for the An-
nuity Fund, have, of course, strengthened the movements
of the operators fur a rise, and per contra, led to many
and serious lapses, it is to be apprehended, on the part
of the Bears. The remarks upon the transactions of
the first week of the present month may be wound up by
stating, as far as the brokers and jobbers are concerncd,
it has been one of considerable profit, business having
been very animated.