The Sun.
London, England, 1858-12-10 00:00:00

REDUCTION IN THE BANK BATE OF
DISCOUNT.

(From thoity Article.)

Coin. Reserve of
Bullion. Notes.
Nov. 17, 1849 £16,037,690 .. £11,027,655
Dec. 27, 1851
Dec. 9, 1858 (last return) 18,776,314 ... 12,324,040

.RAIL WAY INTELLIGENCE.

NORTH-WESTERN.

A special meeting of the shareholders in the
North-Western Railway Company was held in the
Philosophical Hall, Leeds, yesterday, for the pur-
pose of considering, and, if approved, of confirming
the lease of the North-Western line to the Midland
Company, for a term of 999 years, to commence on
the Ist of January, 1859.
Mr. HENRY ALCOCK, the chairman of the direc-
tors, presided.
Alr. WHELAN, the secretary read the minutes of
the company, explaining the various steps which
had been taken with reference to the contem-
plated lease, and the terms upon which it is pro-
posed to be made. The terms of the lease, it ap-
peared are—That the Midland Company shall pay
every expense connected with the North-Western
undertaking, including debenture interest and divi-
dends on preference stock, and a half-yearly sum
equal to a net dividend, without deduction, except
for income tax upon the ordinary shares of the
company, after the following scale :—For the year
1859, £1 10s. per cent, per annum ; for the year
1860, £2 do. ; for the year 1861, £2 10s. do. ; for
the year 1862, £3 do. ; for the year 1863, £3 do. ;
for the year 1864, £3 10s. do., with such addi-
tional dividend (if any) as one•half of the excess
net earnings of the North-Western undertaking
will pay beyond the rates aforesaid. The amount
of ordinary stock upon which the guarantee is to
take effect is £BOO,OOO ; the preference stock (5
per cent.) is £126,285 ; the debenture stock is
about £260,000, and is not to be increased, or the
existing debentures renewed, without the consent
of the Midland Company.
The CHAIRMAN expressed his belief that the
terms of the lease were fair to both companies, and
moved the following resolution :^" That the terms
and conditions of the lease, as now explained to
meeting by the reading of the aforesaid documents,
be, and the same are, hereby confirmed, and that.
the directors be anthorised to affix the common
seal of the company to the lease, and to do all such
acts as may be necessary for carrying the same
into effect."
Mr. R. HINDE (Lancaster) seconded the resolu•
tion.

After a little conversation, in which Mr. William
Douglas (Bradford), Dr. Cowan (Brcntford), Mr.
James Kitson (Leeds), and Mr. J. Sharp (Lancaster)
took part, the resolution was adopted unanimously.
The general effect of the remarks was that the
directors of the North-Western Company were
deserving of great credit for the manner in which
they had conducted the negotiations respecting
the lease, but that it would prove very advantageous
to the Midland Company.
A vote of thanks was awarded to the directors,
on the motion of Dr. Cowan, seconded by Mr. Kit.
son. and was acknowledged by Mr. Alcock.
The proceedings then terminated,

TIIE GREAT SOUTHERN AND THE WATER-
FORD AND LIMERICK.
A circular has been issued by the directors of
the Waterford and Limerick line to their share-
holders, setting forth the terms of the offer for
amalgamation made by the Great Southern Com-
pany. The proposal is substantially to give at the
end of three years 103. in the pound of the Great
Southern and Western stock, and in the meantime
a dividend equal to 3 per cent. on that half. '
suming. as we may, that the Southern and
Western dividend is 5 per cent., it is equal
to guaranteeing 21 per cent. on the Water-
ford and Limerick stock. Upon the whole,
therefore, it seems a proposition which the Water-
ford and Limerick shareholders should hesitate
to refuse, notwithstanding they may not relish the
style displayed in the last letter from the intending
purchasers, and which, if it pervades all their nego-
tiations, partly accounts for the continuance of the
war. The Waterford and Limerick proprietors
would receive, under the proposed terms, an ave-
rage dividend of 11 per cent, on their present stock
for three years, while, under present circumstances,
they have no reasonable prospect of any at all, and
at the expiration of three years they would have a
pretty secure dividend of 21- per cent.

CORK AND YOUGHAL.
We congratulate all concerned in this line, and all
interested in the acceleration of the communication
between Cork and Youghal, that matters are now
in a very satisfactory position. The difficulties
were great, but they have been overcome. The
directors have negotiated a loan with parties in
London to enable them to complete this important
undertaking. The two first instalments have been
paid to the company's bankers, and -the remainder
is to be paid before the middle of this month. The
directors have also made arrangements with respect-
able contractors to commence the works at once, so
that the completion of the York and Youghal Rail-
way is now no longer a matter of speculation.
What we state is not conjectural, but positive, and
the works will soon be in active progress.—Cork
Constitution.

The City was yesterday taken completely b,
surprise in consequence of a notification that thew
•directors of the Bank of England, at their weekly
court to-day, have reduced their minimum rate of
discount from 3 per cent., at which it was fixed on
the 11th of February last, to 21 per cent. Al-
though the terms current in the open market have
long been 4- to 1- per cent. below those of the Bank,
people had quite given up the idea of any altera-
tion lazing made during the present year. Merely
from its being unexpected at the present juncture,
the announcement created quite a sensation. In
the Stock Exchange, as is well known, a rise in
the prices of securities, and a fall in the value of
money by a fall in securities, simply because
chancres of this description are almost invariably
anticipated by the speculators. Upon the present
occasion, however, the alteration has been imme-
diately followed by a rise of no less than a half per
cent. in the funds. During the earlier part of the
day the market was flat; and at twenty minutes
past one o'clock, when the Bank broker first made
the news public in the Stook Exchange—for
nobody thought of making inquiry at the Bank
itself—prices were quoted at a reduction of about
per cent. Renewed firmness was the immediate
consequence ; and, after a general but brief pause,
which was attributable solely to the unexpected
character of the intelligence, a steady upward
movement set in. Consols left off per cent.
higher than yesterday. English railway stocks
exhibit a sensible advance, and French and
Indian were likewise decidedly firmer. The four
o'clock quotations were in every instance the high-
esit of the day ; and after the close of the Stock
Exchange a fresh improvement was established.
During the morning the dfscount market re-
mained easy, the minimum rate for the best bills
being about 2+ per cent. ; and at the Bank the
applications were rather more numerous than of
late. Upon the alteration at the Bank, the entire
market became, for the time, unsettled. The pro-
bability is that the terms for the best paper will
range, for the present, from 2 to 21 per cent. That
the Bank of England will be still underbid by the
other monied establishments is certain. Mean-
while, the latter have not yet adopted any unifOrm
resolution with regard to the rates of allowance for
deposits. Of the joint-stock banks, four have
altered their terms, viz., the London and West-
minster, Union, Commercial', and Bank of London.
These establishments will henceforth allow only 11
per cent. per annum for deposits, instead of 2 per
cent. ; but in the case of the London and West-
minster Bank, sums below £5OO are exceptionally
treated, and will be allowed only 1 per cent. The
London Joint-Stock, London and County, and City
Banks have as yet made no change, but will prob-
ably follow the example of those already mentioned.
No notice has yet been put forward by the Lom-
bard-street discount houses, who, however, are ex-
pected to-morrow to lower their terms to 11 per
cent, for money "at call," and 11 per cent., subject
to seven days' notice of withdrawal. The same
remark will apply to the two discount companies.
The rate now fixed by the Bank applies likewise
to loans on Government stock, but the terms in the
Stock Exchange are still lower.
The motives which have actuated the Bank Di-
rectors in taking the step at the present period of
the year have already given rise to lively discus-
sions. Probably it is felt that the Bank's regular
customers claim consideration. The firmer appear-
ance assumed by the continental exchanges during
the last fortnight, the fact that gold is flowing into
the Bank, and the subsidence of the demand for
money in the German markets have also doubtless
had an influence. It has already transpired, how-
ever, that in to-day's decision the Bank board were
far from unanimous, a minority attaching import-
ance to the generally low level of the foreign ex-
changes, which causes the diversion to the Conti-
nent of the bulk of the gold imported. Remittances
on account of the Turkish and Chilian Loans have
likewise to be met; and the prospect that numerous
other foreign projects will soon be brought forward
is not undeserving of attention.
The present is the third occasion since the year
1844 on which the Bank rate of discount has been
reduced from 3 to 21 per cent. The annexed
comparison shows that, so far as can be gathered
from the figures quoted, the step is justified by
precedent :