The Sun.
London, England, 1869-06-07 00:00:00

TRADE AND FINANCE.

The return of the Bank of England having been less
favourable than was anticipated, the stock markets have
ahewn a general tendency to give way, and prices closed
weaker. Considering the great ease which has prevailed
in the money market throughout the week, a reduction in
the Bank rate was looked upon as not improbable, and con-
siderable surprise was expressed at the nature of the Bank's
accounts. The probable course of the money market
involves some very interesting points, and it is a matter of
great difficulty to predict what it may be. The turn of the
screw at the Bank of England has bad the effect of causing
a favourable movement in the Exchanges, and there is an
evident flow of gold to this centre. This capital
coming into a market that is already well supplied, must
have the effect of lowering the rates. On the other hand,
the course of trade has recently been such as to justify
the belief that we have at length arrived at the
conclusion of the protracted period of discredit
and distrust which has characterised the interval
that has elapsed since the closing of the notorious
" Corner House." The Board of Trade returns just pub-
lished compare very favourably with former years ; and
although it is true that the effect of the transactions
represented by these figures has already passed away
from the money market, it is *evident, from the
accounts received from the manufacturing districts, that
a full average business is being carried on in most
descriptions of goods. From this, however, we may except
the Manchester market, where great inactivity still pre-
vails. But even here, so far as our considerations with
the money market are concerned, there is very little differ-
ence as compared with last year, as the rise in the quotations
for these goods has brought up the declared value of the
articles exported to the level of that of last year, notwith-
standing the falling off in the quantities shipped. A
larger amount of capital is therefore required to carry on
the trade of the country, and much of the money that has
been diverted from its ordinary employment into Lombard-
street will now return into its ordinary channels, and be
applied to commercial operations. With this extension
of legitimate trade we may anticipate a return of specula-
tion, which— though we should be sorry to see it carried
to the excess which it obtained in 1865.6—is a healthy
sign, as shewing a steadiness in demand. Some
movement, too, must take place before long in
the cotton market, and we incline to the belief that
the improvement will come through Manchester
and not through Liverpool. Therefore, notwithstanding
the heavy influx of gold and the fact that money is very
cheap throughout the Continent, we do not see any pro.
bability of a decline in the rates. At the same time, the
influences at work will probably prevent any upward
movement in the quotations for the present.

The prospects of the wheat crop have decidedly changed
for the better since we last wrote, but the plant
made very little progress during May, and must now be
considered backward for the time of year. Whatever
may be the course of the 'weather, it is very evident that
we cannot expect so early a crop as last year's. It is too
early to predict either the quality or the quantity of the
yield, but appearances are not very encouraging. The
last few days, however, have brought the plant rapidly
forward, and should the weather continue brilliant, all
damage that has been done by the heavy rains that have
fallen will be obviated. At the same time there is quite
sufficient in the present position of the trade to justify
farmers in resisting concession. The unfavourable weather
that has lately prevailed here appears to have extended
throughout the north of Europe. Great excite-
ment has prevailed in the wheat trade at the
Russian ports, and an advance of 2s. to 3s. per quarter has
been established there, while at Stettin, which is a large
exporting town, prices have risen is. to 2s. per quarter.
The rye crop appears to have suffered greatly, to
judge by the extravagant prices paid for available
produce. This being the case, it is evident
that our imports from the Continent will be much
restricted, and that the influence of the weather
upon the home crop will be more narrowly watched. The
markets, therefore, are likely to be more than usually
affected by the course of the weather, and prices will pro-
bably fluctuate in immediate sympathy with the prospects
and condition of the growing plant. An incontestable
fact, and one too generally lost sight of, has
a most important bearing upon the present value of
wheat. Low prices invariably induce an increased con-
sumption, and the demands upon our resources have
latterly been more than usually heavy. Stocks, therefore,
have been much reduced, and when we come to consider
that we are already one month ahead in consumption, from
the fact of last year's harvest having fallen fully that
period earlier than usual, it is scarcely necessary for us to
repeat our opinion that farmers should be cautious in dis-
posing of their produce.

The Earl of Derby, K.G., will receive a deputa-
tion from the National Union Conservative and Constitu-
tional Association, on the subject of the Irish Church Bill
to-day,

The Manchester courier (ConserTative paper) says
that the proposed demonstration of Conservatives at the
Pomona Gardens in that city next gaturday prises to bo
a gigantic affair. One Conservative association alone has
made arrangements for the conveyance of 5,000 persons.

The Royal yacht Vivid, which arrived at Oban on
Wednesday, has gone north for the purpose of enabling
Prince Arthur to enjoy a cruise among the Western Islands.
His Royal Highness, accompanied by a select party, will
embark to-day, and it is expected that most of present
week will be occupied in visiting the points of interest
among the islands.

We bate not heard the last of Sheideid rattening.
On Friday the Spar Grinding Wheel, in Endcliffo Wood, in
this town, was broken into, and the main driving band,
which is 47 feet long, and worth about £ll, was taken away.
The result, of course, is to compel the men who are employed
at the wheel to remain in compulsory idleness till the band
is returned or a new one found in its place. The reason of
the band being taken does not appear to be known with any
degree of certainty.

DEATH OF NOMINATORS AND BETS. -To meet similar
difficulties to that anticipated in Pretender's case, Adiniial
Rous intends at the next meeting of the Jockey Club to
move that in the event of a horse winning a race, and it
being subsequently discovered that the nominator was
dead when the horse started, it shall in no way affect the
validity of the bets, unless the nominator's decease was
officially notified previous to the race taking place.
ST. ALBANS.—Edna, the winner of the Scurry Selling
Plate, having been removed from the course before she
could be put up for sale, was put up at Epsom on Wed-
nesday, May 26, and sold 'to Capt. Reeve for 30 guineas.