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

TRADE AND FLI7ANCE.

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 a 3 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 stockof 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
of them were in a very unsatisfactory condition.
While capital was withdrawn from such concerns
as those referred to, it was necessary to employ
:t in some other direction, and, as the number
of really safe and unquestionable investments was very
dilated, 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
of securities have tended upwards in value, at the
sxpense 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
remarked that in the case of Consols, the comparison is
Scarcely correct, as in January IS6G a portion of the new
Dividend had accrued, while at the present time the quo-
:,at.oa is made ex div.

Jan. 1, 1866. June 19,1869.
Consols Account 874
India Five per Cents lo2a
Canada Six per Cents.
~ Five per Cents. 791
New South \Vales 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 noticeable 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 1 rin :ipally to be ascribed
to political movements, or to the financial difficulties of
;ln3 States themselves. In many cases, such as Austria
and Italy, a.n 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 courFet of the quotations for foreign bonds,
most of the six culative companies par excellence
have been very depressed, and up to this period
spew little prospect oF recovery. Annexed is fi state-
ment of the past and present position of the financial
companies which exhibits this fact in a very remarkable
manner.
Jan. 1, 1866. June 19, 1869.
Paid. Paid. Price.
Shares. Pr2ice. £ £
...i
General Credit 4 6 ... 7 6
Cr6dit Foncier 5 81
5 3i
International Financial 5 6
119
London Financial
The disastrous effect upon the quotations forn this
edescrip-
tion of security is at once apparent.
large calls have been made ul;oli the shareholders
eingsreevaeterastl
instances, and that the depreciation
has
where such has been the case—a sure proof that the
extravagant profits that were divided souse years back
existed uppu paper.9oy, and werl !NM' really mud.