Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1854-05-30
LONDON MONEY MARKET.
RAISING OF raE RATE OF ISrERE'T DY rus BASE OF
LAsD-Irs EFFECT THE FUSDs, ETC.

RAISING OF RATE INTEREST Dr. rue BAyK OF Ryo-
LAsD-Irs EFFECT on THE FUsD, ETC
From the London Times city article, 18th.
The Bank Of England to-day have raised their rate of
discount from per cent which il had stood since the
29th OF September to q per cent.
Ths would have been fully anticipated but for
the favorable turn Observable daring the past week 10
foreign exchanges coupled with the impression, which
has this afternoon been realized that the Bank France
we're about reduce their rate to per cent
Although under these circumstances it took the public
in some degree by surprise no question is raised the
prnpriey OF the step aud the general relations Of trade
still so healthy that il has awakened
10 any quarter Instead Of the being rsgrde
premature by those who have watched the tdux Of
null on since September, Il is seen that usual delay
has been pracsed While the drain of gold during the
past months has been to the extent Of 916 1856 aud
the empt arrest has caused alter alto of n
half per each 10 the rate of discount, nely f3OuO
900 Of the loss has occurred subsequently last adj
The public therefore, after noticing The condition
which had nsesstated the proceeding alterations had
every TO be prepared for additional e. end the
sole reason Tor ts not having been adopted earl
would appear sst in the fact that, owing To the
contraction OF business quent the war large
iimiruon Of the circulation has been compatible with
only moderate increase IN the demand for money
Istrue that al the consideration that could yarraut
iresh Day existed apparently greater
seek OtSO ago but il is upon question ola fortnight
way the other that the policy VI the measure turns
II has been believed for time to have been under Sc
rous dcussion aud the presumption may be entertained
that the latest gnH with regard to the stock Of bullion
aud the applications for accommodation have been such as
TO influence the decision arrived Unes5 ,one de-
cded check the drain had become manifest further
hesitation could have been justified by the recent i'm
pfoycmen IN the foreign exchanges which may prove Al
transient that which occurred few weeks bsck /.
also to be bor 10 mind that the late great arrivals Of
grain have failed to produce any very serious depression
on the market and that the country wholly In the
dark what will yet be required before the harvest
while IT the time, the last telegrnphic qurta ne by
the overland mail show that the Eastern are
still far from satisfactory.
Hence, although there Ia ground for anticipating that
more avorSbe, instead Of more adverse state Of airs
may be at hand there many elements Of uncer-
alhy ~ the immediate future TO render IL desirable that
any precautions should be neglected. IL IA possible that
much OF the demand for discount the Bank within the
current week may have been Of artificial character
from the expectation Of further rise and il seems unlikely
that ~ the present Intimate business connection Of the
two capitals, difference Of 2 per can long pre-
vail between the rates Of London and Paris II these
suppositions should be correct the Bank will OF course
soon cease 20 hnd customer, and return 70 lower
charge will take place, harm having while been
caused since the commerce OF the country Is FREQ from
all unhealthy sensitveness
In the English funds oday the fluctuations have been
violent the range OF Consols having been equal TO nearly
provement Of quarter per cent the first price being
SO l2 TO "a. From this they advanced to SIS 49, uhen
the rise brought In one or two large sellers Of money
stock, aud tendency to action visible IL was
also found that, In the arrangement OF the settlement
which took place 70 day, there surplus OF all de-
scrptions OF Government securities the market end
fall therefore occurred 10 So Subsequently, tho an
nouncement Of the increase in the Bank rate Of discount
caused further sudden decline to 81 H. from which