The Sun.
London, England, 1869-05-10 00:00:00

TRADE .AND FINANCE.

The week opened quietly enough from a financial point
of view. On the publication of the Bank return, how-
ever, it became evident that the position of affairs was
far from satisfactory. Notwithstanding the rise of per
cent. in the Bank minimum, which now stands at 4 per
cent., there is a general belief current that the rates must still
go higher. We pointed out some shoat time back that
any considerable advance in the rates of discount must
lead to heavy sales of stocks and kl.arcs, as, owing to the
low rates that have so long prevailed, large amounts of
securities, especially of the more speculative class,
have been locked up under advances from
the banks. Accordingly a panic has ensued
in the Stock Exchange, and large amounts of stock bad
been forced upon the market. Some of the most specu-
lative securities have given way from 2 to 3 per cent.,
while Five-Twenty Bonds, in particular, have been pressed
for sale at a fall of about 3 percent. The banksare in a great
measure to blame for this state of things. For a long time
they have been upholding the most rampant speculation,
but n-) sooner does money threaten to become at all strin-
gent than they make as early arrangements as possible for
calling in their loans. It may well be doubted whether
such advances are within the legitimate range of banking
operations, but there can be no hesitation in denouncing
them as morally wrong, as fostering speculation in the
very worst class of securities.
The reason of the sudden movement in the money
market is somewhat obscure, but the immediate cause of
the advance in the rate is the fact that a large amount of
capital has been taken out of the open market, in conse-
quence of the rates there having been for so long a time
past so considerably below the Bank rate. The Bank is
now in a stronger position than the open market, which
is a most unusual state of things, and can afford to dis-
count at a charge below that of the general dealers. Such
a state of affairs, however, will soon rectify itself, as a
further rise in the official minimum must take place
almost immediately.
Without doubt, the present condition of the United
States has had a considerable influence upon the market
here, and considering the near connection into which the
two markets have been brought by the telegraphic system,
it is no wonder that they should act in unison. Putting
aside the state of politics, which very probably are much
inflated too, there is no doubt that the financial condition
of the States is very threatening. There was an adverse
trade balance against New York alone on the Ist of April
last of upwards of 40 millions of gold dollars, and when
Baltimore, Philadelphia, and Boston are taken into account,
the results will prove still more gloomy, To this must be
added the liabilities that the United States may be called
upon to pay, should anything occur to provoke
distrust in the American Government, or any
difficulties arise out of the Alabama claims. It
is scarcely possible, however, that the Americans
would commit themselves to such a suicidal act
as some of their stump orators threaten while the
finances of the country are in such a distressing condition.
We are aware that a large portion of the indebtedness
above referred to has been paid for by the heavy exports
of Five-Twenty Bonds in response to the European
demand ; indeed, it is this demand for American securities
which has caused the inflation of trade. Unfortunately this
is not the worst of the case. While the stock of dry goods in
America are everywhere large, the ability of ete people
themselves to purchase has been much curtailed. The
difficulties arising from a depreciated currency and a fluc-
tuating gold premium, and the high prices caused by a pro-
tective tariff have restricted trade to an unnatural
degree for years past, and the profits of the
traders have been very small. Consequently these
excessive imports will have to be disposed of at
a loss, and a collapse will be the probable result. Never-
theless, there is no imputation to be cast upon the credit
of the American Government beyond the fact that the
suicidal tariff is one of the main causes of the present
mischief. A collapse in trade, however, must have a
prejudicial effect upon the United States Treasury, and
the position of the Government is, therefore, not likely to
improve.

A somewhat curious case has, says the Manchester
Courier, been sent by the Manchester magistrates to the ses-
sions. Three years ago a firm of brokers in this city lost
£548, stolen from a drawer which was forced open. Ti e
ether day a young man, fo►merly in their employment, ten-
dered a £lOO Bank of England note as a bet deposit. This
was said to be one of the lost notes stoiped at the time of
the robbery. He had endorsed it with another man's name.
The defence was that the prosecution bad failed to prove
that the note was part of the stolen property. The magis-
trates committed the prisoner, refusing to accept bail.
News from Hanley hits been received of a most
lamentable affair. On Friday, Mr. Langley, a gunpowder
agent, sent five hundred-weight of gunpowder to Mr. John
Esprey, colliery contractor, near Newcastle. The carter
placed the powder in the coach-house, and went to tell a
person named Epsley, who arrived within. 10 minutes. Mrs.
Epsley fired the render, which totally destroyed the build
fag, and she was herself buried in the ruins with a beam over
her chest. She is still alive, Lut frightfully injured. Do-
mestic unhappiness is assigned_ as_the cause of the commis-
elm of the rash act. A man passing at the time wasinjurel
on the baud ttlaigkt3A to? the infirmary. "'a'

1? .(.E7 S-2 MS D..IY

LIVERPOOL COTTON MARKET.
May 10.—Sales probably 7,000 bales. The market

MARK LANE.
At Mark-lane this morning there was a fairattendance of
the trade. The demand for English wheat was steady,
but not active or excited, and factors had nu difficulty in
placing their samples at fully the extreme rats of last
last week. In foreign there was rather more doing, and
and here and there is per quarter more money was paid
for fine samples.

NEW SMITHFIELD AND LEADENLIALL.
Tho dead meat trade is steady at former (potations
Beef, 3s 10d to 5s 4d ; veal, 4s to os ; :Dutton, 4s 6d to Gs ;
lamb, 5s 8d to 7s 2d; largo pork-, 4s 6d to se; ; small ditto
5s to 6s per stone.