The Sun.
London, England, 1870-01-01 00:00:00

71NilijiAL p.tviinr 01' Tlll 1J 4

k eengaeicial point of vieW,and SO t Al the etainfxy
events of trade are concerned, the pasi year hm beeu
lioniewhat uneventful, and will be chiefly reMeminrOol on
account of its being the last year in that long period of
depression which has for so long a time existed lii the
f'4=reeroial world, and the causes of which were, fpr the
Inosi paxt, removed in 1869. At the opening of the year
much distrust prevailed, arising not so much from any
interruption to the ordinary course of trade as to the suspi-
cion and a want of confidence engendered by the revelations
which, in so many consecutive cases, followed the collapse
of 1866. Unfortunately our tardy method of procedure,
and the magnitude of the charges involved, prevented an
early settlement of the disputes which have now obtained
115 world-wide notoriety, and it is only very recently that
the chief and most disastrous inquiry has been
brought to a close. The year, however, has come to an
end under more satisfactory circumstances, and late events
%ave gone far towards removing the feeling of distrustful-
,a3ss which has so long prevented any expansion cf enter-
We are now witnessing a 'evolution cf public
opinion in this respect which is likely to be followed by
very important results.; but it appears to us that the
reaction which has occurred is almost as ludicrous as the
excessive displeasure displayed when first the validity
of the paper profits, upon which so many had been
reckoning, was tested. As a natural consequence of this
state of affairs, the number of companies brought out dur-
ing the past year has been comparatively small, and by
far the larger portion has consisted of Submarine Tele-
graph Companies, the undoubted success of the Atlantic
cables having invited further enterprise in this direction.
It may be remarked, however, that the general character
of the companies has been much superior to that of the
many mushroom concerns introduced to public notice
during the inflation of 1865, the investing public having
been in the mood to scan very narrowly the prospectuses
and pretensions of all new concerns.
The Bank rate has ruled very low throughout the year,
and the money market has been very easy. The highest
official quotation for discounts was touched on May 8,
when it was raised to 41 per cent. This advance was not
justified by the condition of the money market at the
time, but was ostensibly made for the purpose of checking
the continued importation of Five-Twenty Bonds, and of
preventing an undue inflation of trade with America. We
pointed out the mistaken policy of the proceeding at the
time, and shelved that although the indebtedness of the
-United States was very large—it was some £13,000 at the
Clue—the balance had been settled by the export of bonds
which were not likely to be resold, and which would Lie
held until redemption. The rate of redemption,
however, was too far distant to enter into our
calculations, and that portion of the question is likely to
be greatly affected by any attempt at resumption of specie
payments, or of funding the debt—both of which are now
under discussion in the United States. The Bank rate
remained at 42 per cent, for upwards of a month, when a
gradual decline to 2Q yer cent. took place, to which figure the
minimum was lowered on the Ist of August, and which was
the lowest point of the year. Money has been very abun-
dant in the open market, but it is a noticeable fact that
the stocks of bullion, both in the Bank of England and in
the Bank of France, have been on the decrease. Capital,
in point of fact, has been gradually withdrawn from
those two important reservoirs, and is being directed
again to the ordinary channels of trade. Notwith-
standing the quiescent state of the money market,
the volume of trade, so far as exports are concerned,
shows a very satisfactory increase, and most departments
of manufacturing industry have been well employed
throughout the year. To this, however, we regret to be
compelled to make an important exception. The state
of the cotton trade has been very deplorable, and great
distress has existed amongst the Lancashire operatives,
leading to a vast but salutary emigraticn. The
limited supplies of cotton coming to hand have
naturally led to high prices and to a restricted
consumption of goods. About one-fourth of the spinning
Power of Lancashire has been compulsorily idle through-
out the year, and it is difficult to give an adequate idea of
the full meaning of that simple phrase. Great efforts
have been made in India to supply the deficiency caused
by the falling off in the American crop, and they have
been attended with no little success, as, according to
recent reports, last year's crop was the largest one ever
grown in India.

The corn trade, however, has presented the most sin-
galar course during the year, and has altogether disap-
pointed the favourable expectations formed in regard to
it. It must be premised that our home crop fell short
of an average by about 2,000,000 quarters, so that we
should require an import of about 8,000,000 quarters,
spread over the current year, to make up for our
deficiencies. It was thought that there was no
doubt of that quantity being forthcoming, but it
did not seem very probable that our receipts would
exceed that figure. The event has proved the fallacy of
these anticipations, for it has turned out that our im-
ports since harvest have been at the rate of between
12,000,000 and 13,000,000 of quarters annually. These
heavy receipts have naturally led to a dull, dragging
trade at constantly declining prices. At the time of har-
vest wheat touched the highest quotation of the year,
the imperh;l average fine being returned, on

.August 2Sth, at 540. per quarter ; since when
the course of prices has been uniformly downwards, until
last week, when the average price was returned at 435. sd.
per quarter. This heavy fall has been a very serious blow
both to importers and to home producers, and the latter
especially have had the worst possible combination to deal
with—a short crop, and low prices owing to excessive
importations. The fall in the price of bread, however, has
exerted a most favourable influence upon other depart-
ments of trade, as the poorer classes have been enabled to
purchase more largely of other articles which must be
esteemed as comparative luxuries. In this way some ex-
pLnation may be found for the high price of meat, which
has been maintained throughout the year. With the ex-
ception of wheat farmers, the year has proved a good one
for agriculturists, and graziers especially have benefited
by the unusual mildness of the season, which has enabled
them to keep their stock out on the pastures, and has
saved them the expense of artificial food. .

The restricted business in cotton, the fall in the value
of wheat, and the general shrinkage of prices of imported
produce since 1866, have directed a large amount of money
into Lombard-street, as trade can now be carried on with
much less capital than was the case a few years since. The
continued absence of speculation in all departments of
trade is another principal cause of the ease existing in the
money market and the comparatively small amount of
coeamercial paper afloat. The stock markets have natur-
ally been affected by this, and we find that most of the
guaranteed stocks and the more secure foreign Government
bonds have been in steady demand at advancing prices.
Consols, however, have not risen above 91—which figure
was touched on November 27—owing to the uncertainty
attending the action of the Government in regard to the
mode of raising the money necessary for the service of the
telegraphs. The loan market has been quiet, but has been
characterised by some lame attempts on the part of
Turkey, Spain, and Italy to obtain further monetary
assistance, and so to stave off for a time their
impending financial ruin. Italy and Spain have obtained
a small sum in this market, but by the painful cost of a
further alienation of the Crown lands ; but the last loan
attempted on account of Turkey appears to have met with
all but total failure.
Apart, however, from the ordinary events, of trade, the
extraordinary occurrences of 1869 have been very impor-
tant, and one destined to exert a most beneficient
influenoe, not only on the commerce, but on the future
history of the nation. The marvellous activity which has
been displayed in the construction and perfection of sub-
marine cables has annihilated the space existing between
the most distant lands, and, for all practical purposes, Lopdon
and New York are in as near proximity as London and lJver-
pool, gofer as the means of communication are concerned.
We are promised an even more advantageous system with
respect to our Indian dependencies,, the communication
with which has long been a crying evil. It is impossible
to estimate the influence that these vast improvements
are destined to have upon the future, but that influence
will be for good. Again, the completion of the Union
Pacific Railroad has added another victory to the
energy of the Americans, and has shewn in a
practital manner that even a line to India from
Eurbpe should not now be considered as utopian. To the
errargy and skill of one man we owe the new passage to
'our Indian possessions, and no country is likely to benefit
mare than England by. the (am,- letion and successful issue
of the Suez Canal. Many other events have taken
placo which our space follids us to dwell upcn.
The fakilig ever of the telegraph system, by
the Government will, to doubt bring this useul
agent into more general use, while Vac adoption of the new
Bankruptcy Act will have a moat in,poi•tant hearing upon
'the manner of dealing with bankrupt estates. With the
abolition of the ls. duty upon corn, the last impost upon
the food otthe people has been happily removed, while it
is not'improbable that the extinction of the duty
on fire/insurances will be followed by similar action,
in retard to marine risks. Attention has been drawn to
a-ally, by the unfortunate pre-
lhod companies, -whose embar-
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