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 circles ; and Mr. Low°
debut as a financier was regarded as triumphant. It wres
felt that the new arrangements will, if carrielL
inaugurate a national s}•stem of taxation in piece
of the cumbrous levy which is to be superseded,
and which has only custom to plead in its defence. The
fact of the Government having determined to remit tasee9
to the extent of £3,060,000 was taken as a proof of their
feeling of confidence in their strength, and as a token that
the economical reforms so long talked about would b°
seriously carried out. Home stocks have accordingly been
very firm, and the general tendency of prices has been
favourable. Mr. Lowe's choice of taxes for repeal and
modification has been favourably commented upon. The
fact of his having selected those particular impostg
against which the most vehement attacks have of late
been most perseveringly directed, shews that the
Government were fully convinced that the taxes iri
question had little to recommend them. The tax on fire
insurance, like all other taxes on prudence, is absoluteli
indefensible, and the marine duties are also doomed to he
repealed at an early date. The corn duty, although
trifling, was a great burden upon the lowest classes. 0
was the last remnant of a barbarous protection, a protec;
tion doubly barbarous when applied to the necessaries
life.

As we pointed out in a former issue, the action of the
Bank directors, in raising the rate of interest 1 per cent.,
has caused a considerable loss of business to the establish'
ment. The Bank return shews the charges incidental to
the payment of the dividends, but, apart from this, it is °
very weak one. The reserve of the banking depart.
went has fillen unusually low, while the liabilities
are up to a full average. This, too, has happened
in a time of comparative ease. Thus rl°
have a most anomalous state of things—a wealc
position of the Bank of England, coupled with a stroll%
feeling in the open money market, where the genersi
tendency of the discount rates is decidedly downward'
The last return of the Bank, however, fully justifies
per cent. rate, but it is probable that this state °l'
things will soon right itself. A large portion of the rates
and coin withdrawn by the payment of the dividends W 3"
speedily return to the Bank, while the dearness of money
here, as compared with the rates on the continental bourseet
will certainly attract such a supply of capital as will came
the bank rate and the rate in Lombard-street to be more
in unison with each other. The probability is, therefor°,
that the Bank directors will have to retrace their stole°
An important fact, however, militates against this theoi'D
The rate of exchange at New York on London has latell
been subject to the most incomprehensible vagaries. Alta
recovering to 108, we find that it has given way 13°t
cent., at which price it may draw considerable amoUsii'
of gold from this side. Should this be the case, it 18,0'
dent that the general money market would become strill.
gent, and the anomaly above referred to would h°
rectified by the rate in Lombard-street approaching. iv
Bank minimum.

Trade generally has shewn less animation during 'ttlie
past week. Cotton has given way in value, but{.
quotations at Liverpool are still utterly disproportions"
to those current at Manchester, which offer no ind Pow
ment to merchants to ship. Consumption is steadily
the decrease, and although the remedy is heroic, it appOl
the only one that will meet the necessities of the .:4056‘
We do not mean to affirm that there is no justification
the rise in the value of the new material which has al‘el:
place, but it is evident that it has no connection with: tijs.
legitimate requirements of the consuming trade. Neivert
theless, we find that the visible supply of cotton for Or°.
Britain shews an excess of 3 per cent. over last 51°1
while the stocks in the interior of the ITrae;
States have increased to an almost flinilli
i
extent. Prices of the raw material have gilved
-
„--
way ¢,d. to id. per lb., on the week ; but the really;
tion should be much heavier before merchants should
enter into any extensive operations. As compared, wit
the quotations here, the returns from the foreign m.arice'
arc ridiculously low, and they are likely to confirm° 8°
.
until the excess stocks and the heavy imports, which (41.-
daily coming to hand, are got rid of. AdviceTfrom 13°Ø.
bay state that 8 jib. shirtings net only 10s. per piece;
against lie. 3d., their present nominal value in Manche°.
ter. Evidently the consumption here must be restri°
• ted
to the narrowest limits, in order to compel a rtkanctiooll
the range of quotations at Liverpool.

Her Majesty the Queen, with the members of Al
Royal family who have been staying with her yaissif
"'.i4
4
l 3 uckin gh am Palace, left London on Saturday at ten ..
one o'clock by special train on the Great Western Bilii/rl'a
The train was timed to reach Windsor at
Prince Leopold, whose indisposition 'o'.'
to miPligiOilitti