The New York herald., 1864-11-29
The rate OF Discount
RKACoNe OF THE BANK OF ENGLAND FoR TEE Hy.
pUcTION TO BI0Hr PgR CENT.


pUcTioS TO EIsHr Pgs csNr.
From the Lo9dos News (chy ars,cls Nov. III
The Of The Bank OF England ~ their weskly
court 20 day NOV ley reduced the minimum rate Of a
count from nine 10 eight per cent This movement
merely fulfilled tho universal cxlecaton, yet was re.
garoed with satisfaction that account
being calculated . beoenciai effect he
trade counSry hoh has long been laborg under
tbe exor esnt value Of money The bank measure is
more welcome because IL Is generally regarded as the
soeruruer Of sliii greater fall In toe rates. Already
the terms In The general market are setting down al
decidedly below the reduced min nmun At The bank
the ioued influx Of gold, the appearance 0 the
exchanges she position occupied by our market 40
cded improvements shown BY to-nght'a return the
Rask accounts all encourage belief tha, the
downward NOV emeat viii 60 On
Tho rate hss been per cent since the sth Of sep,em
Der last Since then the coin and bullion have increased
from fl2,s-o44I TO 40 difference of fs76 s2s
and the reserve (notcs and con) from f6 h82 10
G7s07, i75an increase of 81 0s5 ts8 II Is also worthy
OF remark that the 26th Of May last when the bank
and bullion fis7ls s43 only kss 67s more
and the reserve f7 o47 1888. only $50 963
than now From oomparison it would seen reason
able 10 argue that the bank win soon be mpeed 70
make fresh reduction. Cheap money is no. 20 be
locked for only By reason If sbe extensive demands
which are expected 10 come upon us at the hrst
favorable opportunity from several needy foreign
eovernments, Il, say nothing OF other demands from
prise home but the trading classes this country viii
be content with the prospect Of some further moderate
relief.
That the commerce Of the countrymust bsnsst by the
change In the position Of the money market needs little
Demonstration. Apart from other considerations Is
evident that capital commands higher value IN this
country than In the other principal markets Of Europe
our traders aud manufacturers must be placed at dis
advantage by comparison with trsders and nsn'ifnctu
abroad. Nearly all persons practically eopverssnt
with business have heen unanimous for slime past
in declaring the lately charged
dation could not Re paid long Without occasloning
great contraction not merely OF speculative. but also
OF legitimate operations. Whether such bigh rates
wero really necessary except to carry out in its integrity
the act Of 1914 apparently framed With the
object OF enrichnz eready wealthy c'sss at the cost
cusson OF which-if necessary by parliamentary
miitee-our accomplished Minister Of Finance would do
excellent service IN promoting. The amount Of injury
which the operation ths act IN tho present instance
has inflicted will never be known, for vii never tc
computed either by the holders Of recuri'es who have
seen them so seriously deprecated or by the trading
classes who have been compelled 10 sacrifice their stocks
OF cds ana to pay most exorotar rates for accom-
mediation. For such losses there he but very par
tal compensation in the gains realized by the large CAM
talists who stand ready all sucb OCCASIONS avail
themselves or the opportunities for buying presented
them by the stringent working OF tho Law.
The prospects stock exchange busness also much
improved by the present and prospective fall 10 the value
Of money. Every and then tns upward course OF
prices has been checked by OF impending
tile failures yet nothing can be more absurd than IN
for IL perfectly certain that mercantile house before
ntmatng TO its creditors its inability to eel its
ments has sold or pledged every security In It's DOSES
son But there is TO be taken beyond this the
more distrust bias been disseminated in commercial
circles tho less desrous will tbs public be to place their
they bs TO invest 10 solid securities ebtanabe through
the medium Of the Stock Exchange Before long. in
viii be offered for deposits BY the Joint stock
banks and other financial establishments, and this
will mpart further stimulus to Investments. Tben
have bear In the additional cousderaon that at
she approaching close Of the the dividends OF
great railways and banks will probably be unusually
goodthe former, because traffic has been extremely
satisfactory and economy has not been neglected and
the latter, because there has been unusually wide
margin between the rates paid by the banks for
and these a which il has been employed The better
tho which the public derive from tbess
Investments the more able and willing will they be
re
IN favor Of steady appreciation OF exstDg aecuri,ies
sni prices reach such point 10 provoke tho usual
creation OF more The difficult task will then arise OF
discrm mating carefully between the fresh stocks which
are sure TO be pressed upon US from every quarter