The Sun.
London, England, 1869-06-21 00:00:00

TRADE AND FINANCE.

It is now upwards of three years since the collapse of
the " Corner House," and since that event we have passed
through an interval of stagnation and depression of trade
which is entirely without parallel in the history
of all former panics. The timidity which has
been exhibited by capitalists during this protracted
period is quite as unpardonable as the reckless temerity
which characterised the inflation immediately preceding
"Black Friday ;" but this affordsus an accurate means of
measuring the intensity of the panic that then set in.
Without entering into details, our readers are fully aware
of the utter suspension of all enterprise and credit that
hassince prevailed, and our present purpose is to discover
what effect these events at this distant period have had
upon the money market. The panic which seized upon
all classes naturally led to a complete distrust in all new
companies, and especially in those companies which
had been started during the period of inflation referred to.
The consequence of this complete change of feeling was
greatly to depreciate the value of the stock of these institu-
.;ions, and a large number of shares were thrown upon the
market. Many companies succumbed to the pressure, and
although in several instances sound concerns were rooted
out, it is but too notorious that the greater part
if them were in a very unsatisfactory. condition.
While capital was withdrawn from such concerns
is those referred to, it was necessary to employ
:t in some other direction, and, as the number
of really safe and unqqestionable investments was very
imited, the large demand forced up prices to an excessive
sgure. Although the effect of this, from mere lapse of
time, has in a great measure passed away from the
market, it will be seen, from the statement given below,
that guaranteed stocks and really choice descriptions
if securities have tended upwards in value, at the
.xpense of those of inferior mark. Among those
not enumerated may be mentioned the Indian Guaranteed
Railways and several colonial stocks, which, although not
under imperial guarantee, are considered sufficiently safe
as to offer an eligible means of investment. It may be
:emarked that in the case of Consols, the comparison is
scarcely correct, as in January 1£66 a portion of the new
iividend had accrued, while at the present time the quo-
At 'sill is made ex div.

Jan. 1, 1866. June 19, 1869.
Consols Account B7k
India Five per Cents. 1023
Canada Six per Cents.
, Five per Cents. 79k
New 'South Wales Five per
Cents. 92
Victoria Six per Cents.
Egyptian (1862)
Italian
Peruvian
Spanish Three per Cents.... 43i
Turkish Five per Cents. ... 41

A very marked difference is here notice Able in the value
of really first-class securities, but it must not be supposed
that the irregularity which appears in the value of foreign
bonds is attributable to the fact that capital has
been withdrawn from that market. On the con-
trary, an unusually large supply of money has
been placed in the hands of speculators for employ-
ment in the foreign market, and very large amounts of
;hese securities have been locked up under advances from
the banks. Whether this description of business falls
within the ordinary range of a bank's legitimate opera-
, ions, we shall not stop to consider, but it is
evident that these facilities uphold the very
worst description of specu'ations. The variations in
foreign securities are l rill :ipally to be ascribed
political movements, or to the financial difficulties of
'the States themselves. In irany cases, such as Austria
and Italy, an income tax has been imposed, to which
foreigners have been made liable, and Spain is evidently
about to follow this bad example. While such has been
the course of the quotations for foreign bonds,
most of the spt cu7ative companies par excellence
have been very depressed, and up to this periode
spew little prospect of recovery. Annexed is a sta. t
went of the past and present position of the financial
companies winch exhibits this fact in a very rmark bl
manner.
Jan. 1, 1866. June 19, 1869.
• Paid. Pric£ e. Paid. Price.
Shares. £ £
General Credit 4 6 7} 6
Cr6dit Foncier 5 81
International Financial 5 0 5 34
London Financial ...... 15 19
The disastrous effect upon the quotations for this descrip-
is at once apparent. It will be seen that
ltaiorn,eoefalslesehuryaivte
been made ti,ron the shareholders in several
instances, and that the depreciation has been the greatest
where such bas ILen the case—a sure proof that the
eexxitBrtaexatuga rioit44
pparpoficl onsly,
that were divided rote years back
and were mover really earned.