The Sun.
London, England, 1860-03-07 00:00:00

COMMERCIAL.

The year 1859 has closed since our last summary was
despatched, amid general gloom and despondency. The
weight of the heavy stocks on hand has been severely felt in
a dull market, and during the last two months of the year
many houses have succumbed to the pressure of the times.
Trade gave place to rumours, confidence was destroyed, and
the dangers of a commercial crisis appeared to be imminent.
Happily, a better feeling set in with the first of the cur-
rent year ; but the effect of the over-trading spirit of the
past year will be felt for many months to come. As re•
Bards the general resources of the colony, the year 1859 does
not compare so unfavourably with its predecessor. The
prevailing commercial depression has not materially affected
the yield of the goldfields. The escorts which arrived at
the Treasury during the week ending the 31st of December
brought down 30,246 oz., which completed the returns for
the year. The total yield of the gold mines amounted to
2,205,194 oz. against 2,336,206 oz. for 1858. Very large
sums of money have been expended in erecting ma.
chinery and providing for the supply of water. None of
these companies have yet contributed to any extent
towards the weekly escorts. It cannot be denied, however,
that the year has been behind its fellows in the yield of the
precious metal, as will be seen by' the following statement
of the escorts and shipments for three years :—•

Escorts.
Shipments.
oz. dwt. oz. dwt.
1857 .. 2,478,832 6 , 2,810,278 14
1858 2,336,296 6 5,500,544 1
1859 .. 2,205,194 0 :: 2,229,351 2
As some discrepamcies will be found to exist between
these figures and those previously given by ourselves and
by other compilers, we may mention that they are made up
from official data for the Customs years in all cases.
The money market has been subjected to several fluctua-
tions. In May the banks reduced the rate of discount for
three months' bills 1 per cent.—from 8 per cent, per annum
to 7 ; in July the old rate was suddenly re-established. At
the commencement of the year the banks were selling 60-
day bills on England at par. The rate was raised to per
cent. premium in May, and to 21 per ceet. premium in July,
and was lowered to 1 per cent. premium in October and to
par in November. During the whole year the market has
been gradually becoming tighter, notwithstanding the large
sums raised in the London market on railway debentures,
and expended on the two great trunk lines. Goods have
poured in upon the colony, and have been stored, while
every succeeding week has found the market leas open
to operations. Speculation has been shunned by the more
prudent, because of the impossibility of foreseeing the
supplies that were to come. What little has arisen has
been, in two many instances, feverish and unsound. Mer-
cantile houses have required large advances in order to
enable them to hold the merchandise consigned to them•
The buyers have had the command, and the credit system
has been fostered by the strong temptation to quit goods at
a price showing anything like a profit on the transaction.
Every reaction has been checked by the succeeding mail's
advises of shipments on the way; and, amidst all this, com-
petition has been too keen, expenses too heavy, and profits
too small. Rents, which have given way everywhere else,
have been maintained in the business part of the city.
Good situations have always been eagerly taken up, the
crowded condition of all branches of trade notwithstanding.