The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-25
FINANCIAL AFFAIRS m EUROPE.
LONDON MONEY MARKET.


ANOTHER REDUCTION OF THE RATE OF INTEREST BY
THE BANK-RETURNs OF THE BANK OF ENGLAND
MOVEMENTS OF sPECIE-BgLLfoN AND coNsoL
MARKETS.
prom the London Times fCity Articie) Jan. 81
The Bank Of England have reduced their rate OF dis
count from per cent Ut which fixed the oath
OF December, 10 per cent As the measure had been
regarded certain for the past eight days. pro-
duced effect upon the stock market The bullion
excess Of the total in May 1856 when the rate was re-
duced from TO per cent and nearly, If not quite equal
TO the amount attained in the following month, when
further reduction took place TO Az The influx stu con
tnues and is likely 10 be maintained for time. The
question, therefore, Of another downward movement Is
likely TO be entertained at an early date.
From the London Post (City Article) Jan 81
In accordance with the general anticipation the drec
of the Bank of England reduced the minimum of
interest ana discount 70 SIX per cent toaay ms move
upon which ii has taken place well understood,
that comment is rendered unnecessary II has now be-
come question when the next reduction will lake place,
and a large number Of persons, in position 10 form
correct opinion the subject do not hesitate 10 predict
further reduction OF per before the close Of the
present month Whether they right In their aniici
pations time will show Is, however, well worthy OF
general consideration, whether Is not desirable that
some little time should elapse before any further
alteration In the value of money be made. We have
now arrived at a period when the Bank act Is
practically inoperative and consequently behooves
every mercantile 10 exercise greater degree Of
caution 10 avoid being carried away by the stream
This duty moreimperatye on the money dealing bodies,
but regret 70 observe that they eager TO
force out money they few weeks back 10 curai
its supply. moderate value Of money undoubtedly
essential element in return 10 prosperity trade,
and looked merely in that point Of view the keen
petition which nj present exists for eligible securities IL
scarcely to be censurcd, nasmuch a. II Is an important
means towards the attainment OF that end Real CONNER
cal prosperity Is plant OF slow growth, but speculation
Is speedily developed, and especially after such q
period that through which the country has just passed
We therefore consider desirable for general
welfare that the Bank Of England should enter the market
as competitor with the other banks and enter upon
az reducing tho value II money merely Tor the sako
OF obtaining larger share OF discount business than
would otherwise be the II appears 10 be under
stood that considerable Of the advances made
by the bank authorities when the government letter au
thorzed them 10 exceed the legal upon bills
II long date and that circumstance shows the foresight
Of the directors, and Mt the time enables them 10
view with compacency the small amount OF business
which they at present doing This fact also partially
explains the OF the comparatively small amount
OF the weekly decrease in the amount Of other securi
ties shown by the recent bank returns The propreors
Of the Bank Of England will doubtless nd that they have
no reason % be dissatisfied with the profits Of the opera
tons Of the current six months, the bank does
not increase lis present discount business until the end Of
money wln FORTNIGHT Il oeriaialy rapid ryvk and The
public ought 10 be satisfied Il further alteration be
made until we enter upon another month.
IRON the London Chronicle, Jan
Yesterday at the weekly meeting Of the bank directors
the minimum rate Of discount reduced from 10
per cent This movement had been for days fore
seen, and the consequent influence upon the Stock En-
change when the event uanspred, almost invisible.
AZ beiokenng the rapid rcreae in the supply Of capital
and general Improvement in the monetary position Of AZ
fairs, this proceeding becomes important
large supplies OF bullion have flowed into The great
banking establishments both continents. The Bank Of
England, whose reserves had dwndled two months
10 an slarmngy low ebb, nov possesses between twelve
and thirteen millions OF specie In is vaults, aud
mands OF unissucd notes not FAR short OF
millions The Bank Of France during the same period
has acquired large sugmenations In s stock OF bullion,
known contain hoard not falling far short
Of twelve Millions In New York, the latest official
turns from The state banks exhibited metallic basis Of
Eve millions sterling, being far larger substraum OF
specie wherein TO base their specie issues than
these Institutions had ever boasted before.
in the establishments specially organized with
the view Of dealing In that particular article.
general principle, the symptom could not be consi
deret favorable. When money shows such strong ten
dency 10 congestion In the Golfers OF few banks, the
cause must either be that apprehension Of
quantum Of specie than they might oherws have
qured, that the natural outlets FOR capital employed
In reproductive services, have become choked up. In
Of capital lying dead and unproductive. The
step adopted by the Bank OF England will tend 10 mi
ugs,e the evil, by setting liberty for the purposes Of
which has for many months last been locked out OF
roach Of those who might have employed IL 70 useful and
Prom the London Times (Cty Articlc), Jan 81
Tbs has been settling day in the English funds, and,
established Consos for money opened at the quotation
Of last evennR-94L 10 9tX, whence during the
rangemen Of the account, they declined 10 eiH 10 eix
Ultimately the market influenced by the withdrawal
Of the large amounts Of stock temporarily placed upon
by the Bank Of England and other establishments during
the recent crisis and upon succession Of purchases
rebound took place ~ 95 10 p5k which steadily
maintained For the 4h OF February the last transactions
at e5 TO 951. One small failure announced
during the morning BANK stock left OF at 2ls 10 go;
three per cents, % N qb India stock, 2s TO ga
India bonds par TO 5s premium and exchequer bills S.
30 I2s premium
In the Stock Exchange to day the rate for advances
government securities y per cent At the Bank Of
England there moderately full demand although in
the open market the choicest paper negotiated at be-
tween 4 \ and per cent
Foreign stocks continue in fair dcmasd and the market
shows tendency 10 n further advance
In the Foreign exchanges this afternoon bills Hpon Ham
burg aud Amsterdam were in demand and the rates IN
both instances declined Paris also actonaly lower
than last post
The final quotations Of tho French three per cents
the Paris Bourse this evening COZ SOC Tor money
and 7Of 1Oc for the end Of the month showing reaction
Of nearly three elgbths per cent
Tho return from the Bank " England FIR The week end
Ing tie 9Th ~ January gives the fo0GDr results when