The Sun.
London, England, 1858-03-09 00:00:00

their sanction from it, and yet it numhPrs 131
Catholic scholars. According to the propurtions
exhibited by the census returns, the number of
children of the Roman Catholic faith should be
rather under 180 ; that the school numbers as many
as 131 shows how small has been the influence of
the withholding of the bishop and clergy's counte-
nance.

STATE OF TRADE,
MELBOURNE, SATURDAY, JAN. 16.

During the whole of the month since the departure of
the December mail there has been a great depressio❑ of
trade without any very disastrous occurence. There was one
considerable failure, that of aMr. Riorden, which illustrates
the too great facility with which a trader can get credit,
and the rapid rise and fall of trading firms. He came here a
few years ago, and it is said without much capital, and yet
by successful operations about 12 or 15 months ago he was
believed to have a capital of some 35,0001. He then com-
menced speculating largely, and was aided in so doing by
a house here, who imported for him, he finding the means
of closing each transaction by cash and bills before the bills
of lading were handed over to him. These transactions
have extended to nearly half a million. /f Riorden's ex-
pectations had been fulfilled—especially if flour had risen
as much as it has fallen—he would have made a large for-
tune; as it is, he has lost his previously acquired capital
and his creditor's money to boot. This great cast for
wealth or ruin is far too common in all these colonies, and
indicates rather a low tone of mercantile morality.
" The "4th of the month" passed over without disaster,
and up to the arrival of the mails there was great quies-
cence, but with almost a suspension of business, caused by
the delay of both mails. Thei news of the disastrous state
of trade in England and America has increased the gloom
here, and there is a whisper of further failures. Still Ido
not think the pressure will be verygreat or of long duration,
unless, indeed, some of our largest houses should be pulled
down by English failures. It has been authoritatively an-
nounced here that the failure of Dennistoun's house will
not affect the house here, the Melbourne house not being part-
ners of any of the other firms, and being themselves solvent,
but they have been large shippers of gold (46,000 oz. for
instance in one parcel), against which they are said to
have drawn.

It is only necessary to look over the tabular statements
of the Argus to infer a very considerable depression for
some time to come, and when I have added a few correc-
tions this will be more conspicuous.
In the first place, our imports during the last year have
exceeded our purchasing power, as partly indicated by the
value of imports and exports respectively. I say partly,
because our gold is valued too high—not with respect to its
sale-price in London, but with respect to its purchasing
power. It is always valued at 80s. per ounce, whereas its
purchasing power, deducting charges, does not exceed 765.
per ounce. This converts the stated excess of imports
(833,0001.) into 1,278,0001., by the addition of 445,0001.,
over-valuation of gold.
It is true that in 1856 our exports exceeded our imports
in value by 1,370,3661. ; but if we apply my correction of
4s. per ounce on 3,000,000 ounces, it would reduce the sur-
plus of purchasing power by the sum of 600,000/. or to
770,366/. Deducting this excess of export in 856 from the
excess of imports in 1857, 1,278,0001., we have an insuffi-
ciency of purchasing power on the two years rather over
half a million—quite enough to depress trade, and yet not
such a deficiency as to protract the depression over a long
period.

There is also a temporary stagnation in the wool market,
which cheeks the normal demand for imports of all kinds.
But by far the greatest cause of decreased demand for im-
ported goods arises from the extent to which money has
been invested in building, land, and joint-stock under-
takings. These have pretty well absorbed the accumula-
tions of the last two years, which I believe were very
considerable. Even now money is readily found for land
purchases, and building enterprise, though checked, has
not yet ceased.

Your readers will recollect that in the early part of last
year I expressed an opinion that our export of gold in 1857
would be about 1,000,000/. short of that of 1816. This is
the case. The export of 1 56 exceeded 3,000,000 oz. ; in
1857 it was 2,757,047 oz. , valued at 80s. per oz. 11,023,1881.
Though this affects our external trade it must not be
taken to indicate a decline of prosperity. We now produce
much that we imported in the early days of the goldenera.
Iron and wooden houses were imported largely—we now
build of brick and stone, and that too on a more commo-
dious scale than formerly. Timber is extensively manu-
factured into boards at the saw mills around Melbourne.
We raise some 2,000,0001. worth of firm and garden pro-
duce which had no existence in 1853-I. There is conse-
quently much greater comfort than there was throughout
the population, though we do not count our income by
quite so many pounds.
It is not to be doubted that the practice of English
houses to consign for "sale and returns ' is very ihjurioas.
It baffles the calculations of the most prudent importers ;
and every consignor who has helped to glut the market
thinks himself cheated by the dismal account sales he gets.
This is especially the case with British manufactured
goods not suited to the taste of the market. They are
shipped from home because they are not there saleable.
They are equally unsaleable when they arrive. If the mer-
chant has made an advance, he sells to r eilise his advance.
If not, he holds for the consigner'a orders. At last the
latter gets tired, gives au order to realise, and a "slaughter"
sale by auction terminw es the account. For this no one is
to blame but the speculative consignor, who has not suffi-
ciently informed himself of the market.
Our net gain of population from abroad aas in 1857,
41,647, which makes our population on the 31st Dec. last,
457,000.

NEW SOUTH WALES.
(Prom. the Sydney Morning herald of Jan. 9.)
MONEY AND SHARE MARKET.

Since our last summary, dated Dec. 9, 1857, the share.
market has been almost inactive, and prices have remained
stationary. The half-yearly meetings of the Commercial
and Joint-Stock Banks aid General Assurance Company
will take place towards the end of the mouth, and it is an-
ticipated that the dividends declared, with the exception
of the Commercial Bank, will be the same as last half-year.
During the year 1857, which has just ran its course, there
have been several marked fluctuations in the stock and
share market. At the commencement of 1857 there was a
downward tendency, and prices ruled lower than they had
for some time previously; but in April a better feel-
ing was evinced, and shares of all the dividend-paying
companies, as well as Government debentures, rose consi-
derably. This advance was well maintained nn i October,
when, owing to the tightness in the money-market, com-
bined with the news from England of the high rate of in-
terest ruling there, the market began to droop, and the
prices of all securities, notwithstanding their dividends
have been fully equal to those before declared, have given
way ; and in some instances the fall in prices, as compared
with the quotations of the Mat December, 1856. show a
decline of from 51. to 11. par share. Corereercial Bank and
Union Bank shares are 51. to 6/. per share lower than last
year. Bank of New South Wales remain at the same price,
451. per share. Australian Joint-Stock Bank and Gaslight
Company have advanced 10s. per share. Australasian Steam
Navigation Company and Hunter River New Steam Nevi-
ption Company are 10s. per share lower. General Assur-
ance Company have improved 10s. per share, and New
South Wales Marine 55. per share. Government deben-
tures of all descriptions are dull of sale. In April, leo?,
there was a great demand for this security, and the Inter-
minables advanced to ono per cent. premium. Since that
period, however, the market has been glutted by the con-
tinued issues of the Government and Interminables, and
are now almost unsaleable. Those due in 1860 are quoted
at 96, and the 20 years' Debentures at 96. The great
demand for money in England has no doubt affected
the price of these securities; but there is also the
fact that the Government want to borrow 400,0001.,
which sum was proposed and authorised by the Legislature
to be raised by Treasury bills bearing 6 per cent. interest.
Until this loan is effected we canuot anticipate any im-
provement in these securities. Besides these causes, the
step taken by the banks of allowing interest on deposits
has materially added to the flatness of the stock and share
market, as it is believed by many that these institutions
will not be able to pay the handsome dividends they have
been doing the last two years.
_ _

The rates of discount have continued throughout the
past year at 6 per cent, for bills having 95 days to run, 7
per cent. for 125 days, and over that time 8 per cent.

THE MINT.

The amount of gold-dust imported into the Sydney
branch of the Royal Mint for the purpose of coinage during
the year ended 31st December, 1857, has been 22:3,2150z. ;
during the year 1856 the quantity received was 289,9100 z.
The following are the quantities received quarterly during
the years 1856 and 1857 :-- _ _

1856. 1857.
oz. oz
First quarter, ended 31st March 68,875 ... 30,861
Second ditto, 30th June - 54,579 ... 31,314
Third ditto, 30th September 55,912 . 53,191
Fourth ditto,_
31st December.

Total . 289,910 ... 223,215
It will be observed that the amount- received during the
last quarter of 1857 was almost as much as was received
during the previous three quarters.
The; value of gold coin issued during the year 1857
was 767,5301., and consisted of 499,000 sovereigns, and
537,000 half-sovereigns.