The Sun.
London, England, 1869-04-12 00:00:00

TRADE AND FINANCE.

.The unexpected nature of the Budget caused a most
favourable impression in city cli-t.deb *ud Mr. Lowe's
c/d)ftt as a financier was regarded as triumphant. It vr3/
felt that the new arrangements will, if carried,
inaugurate a national system of taxation in 1)101
of the cumbrous levy which is to be superseded,
and which has only custom to plead in its defence. Tile
fact of the Government having determined to remit taxa
to the extent of £3,060,000 was taken as a prod of their
feeling of confidence in their strength, and as a Wren that
the economical reforms so long talked about wtuld be
seriously carried out. Home stocks have accordingly been
very firm, and the general tendency of prices has bees
favourable. Mr. Lowe's choice of taxes for repeal al4l
modification has been favourably commented upon. The
fact of his having selected those particular imposts
against which the most vehement attacks have of late
been most perseveringly directed, shews that the
Government were fully convinced that the taxes ill
question had little to recommend them. The tax on fire
insurance, like all other taxes on prudence, is absolutell
indefensible, and the marine duties are also doomed to be
repealed at an early date. The corn duty, although
trifling, was a great burden upon the lowest classes. It
was the last remnant of a barbarous protection, a protee;
tion doubly barbarous when applied to the necessaries 9
life.

As we pointed out in a former issue, the action of tllO
Bank directors, in raising the rate of interest 1 per cents
has caused a considerable loss of business to the establiebe
meet. The Bank return shews the charges incidental t°
the payment of the dividends, but, apart from this, it is I.
very weak one. The reserve of the banking depart.
meat has fallen unusually low, while the liabilities
are up to a full average. This, too, has happened
in a time of comparative ease. Thus Odi
have a most anomalous state of things—a weal'
position of the Bank of England, coupled with a strong
feeling in the open money market, where the general
tendency of the discount rates is decidedly downwards'
The last return of the Bank, however, fully justifies a 4,
per cent. rate, but it is probable that this state a
things will soon right itself. A large portion of the rata
and coin withdrawn by the payment of the dividends will
speedily return to the Bank, while the dearness of money
here, as compared with the rates on the continental bourse,
will certainly attract such a supply of capital as will cans°
the bank rate and the rate in Lombard-street to be more
in unison with each other. The probability is, therefOle
that the Bank directors will have to retrace their step'
An important fact, however, militates against this theofP
The rate of exchange at New York on London has lately
been subject to the most incomprehensible vagaries. Aftet
recovering to 108, we find that it has given way
cent., at which price it may draw considerable amount°.
of gold from this side. Should this be the case, it is eV
dent that the general money market would become stria'
gent, and the anomaly above referred to would b.,
rectified by the rate in Lombard-street approaching tt"
Bank minimum.

Trade generally has shewn less animation during the
past week. Cotton has given way in value, but the
quotations at Liverpool are still utterly disproportionate
to those current at Manchester, which offer no 'induce'
ment to merchants to ship. Consumption is steadily OS
the decrease, and although the remedy is heroic, it appear°
the only one that will meet the necessities of the ease'
We do not mean to affirm that there is no justification for
the rise in the value of the new material which has taken
place, but it is evident that it has no connection with tllB
legitimate requirements of the consuming trade. Never
theless, we find that the visible supply of cotton for Gres"
Britain shows an excess of 3,j per cent. over last Year'
while the stocks in the interior of the 'Unite;
States have increased to an almost slings'
extent. Prices of the raw material have givc°
way to Id. per lb., on the week ; but tho redoe'
Lion should be much heavier before merchants sbetahl
enter into any extensive operations. As compared 0..;
the quotations here, the returns from the foreign marl°,
are ridiculously low, and they are likely to continue 44..;
until the excess stocks and the heavy imports, which
daily coming to hand, are got rid of. Advices from Be°•
hay state that 811 b. shirtings net only 10s. per Pie°.
against lls. 3d., their present nominal value in IVranchl
ter. Evidently the consumption here must be restrieme
to the narrowest limits, in order to compel a rafli,etiol3,
the range of quotations at Liverpool.

Her Majesty the Queen, with the members of .9•31
Royal family who have been staying with her MaJa.titL'oi
B uzk ugh am Palace, left London on Saturday at ten minn',
ono o'clock by special train on the Great Western 1P41f4
The train was timed to reach Windsor at half-pa/Ai°
Prince Leopold, whose India tion occasio 0 r
to prolog _halts