The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-09-09
the ENGLISH MONEY market.
Money at Two Per Cent and Trade Very
Dul-Why the Congested Capital IL Not
More freely EmplOyed.

from the London Times, August 81
relapse OF quarter per cent in the price OF consols
will provoke many a repetition of the inquiry, so COM
mon during the last six months, why business is 80
dull There is widespread belief that trade is unduy
depressed and the belief 10 without some foundation
in reason, though the depression itself may be OK
picabe from ordinary causes The Bank rate OF dis
count is low II has been lower. Bills are, how
ever, discounted what il called the open market at
even less rates than that charged by the Bank OF Eng
land. The value OF money on tue Stock Exchange IS
lower SSH Th rate paid tor It's use on snort loans does
not exceed per cent per annum And yet
4 IS sail an uncSsmpled supply creates no
demand. LIT the rae OF interest be reduced
ever - low no one sr,cd % psnturss 10 in
c-saiei .fo4 u rtaars n lrlms o. pA..coi economy
cla world. The s,ugg!shIess OK the mercantile temper
Is inviuei5ic. THO csrtaaty Of more than abundant
aagvcs ). IN = ner.ca aad prospect of ample har-
ve.tai sonie-circc instances which in common times
powern % revive the drooplng spirits of OF
bus ness-ars this year without influence There Is
dead. IN Vate1lhp cam
The position OF the money market Is undoubtedly sin
ggar 4 not unexanpled. The bank rate Is at two per
CEN, and the bank holds nearly fifteen millions OF
Oaey hand current liabilities amounting to
little than twcntysix millions the rate ought, ac
cord ~ tie ordinary policy OF tho Bank Directors 10
be s;i further lowered The Bank OF England s more
over, not the only national institution which has Ia its
Golfers amount OF coin and bullion altogether out OF
proportion tho necessity imposed its management
by the amount OF its liabilities. The Bank OF France has
more than thirty millions Of money in hand to
demands of all kinds OF less than sxtytwo
millions and the stock OF coin and bullion at the Bank
OF France continues TO increase. AT first sight 10 would
be thought that produce and
decisive effect on the trade OF the world Here ars two
funds OF money Ia the bands OF the two great
lenders Of capital waiting, or rather seeking employ
mcnt The cement in each case Is DESTROYS OF set
ting Of its stock Of cash. and proclams its
diness accommodate borrowers upon the most moder
ate terms According established theory the tempa-
ton should prove irresistible The OF business who
are looking out for opportunities, who nicely calculate
the chances OF profit and MAKE the difference oil quar-
rush into speculation AZ matter OF fact they do not
Why they so remiss' We believe tho explanation
IL not TO seek Burned children fear ne fire, and
fteu not uncomony haze ich wholesome recofscons of
recent sgferno that they shriHi from, anything that looks
eren ssa The psculary Q, the presen. lime Is tina,
things side by side IN years or ordinary prosperity
and comfort when the Bank rate Is low aud the Bank
Golfers full, all kinds OF investment show the
influence OF the fact Government funds OF all nations,
the stocks OF banking and commercial associations are
ana s1 French funds are indeed sufficiently high The
renes nearly TO- the price OF consols between %
and 9s, and, remembering how many stocks bearing
government guarantee now compete with the funds as
4 mode Of permanent Investment, the price 10 ex-
tremely high. The Indian securities, IN the same
way. enhanced 10 the estimation OF buyers. II
is unnecessary enumerate the details Of the other
side Of the picture. The funds OF all governments
scAfch hare any s'en.en q donI or Insecurity a'tdehed
mics low in the market The inference Is obvious
Money cheap, bu. Is not cheap to all Il Is cheap
to some: 1t is dear, rather i6Sccessioe, 70 more II
is cheaper indeed TO favored few because the
OF from the supply. When II Is said, for in
stance hs ,hs BANK rae Two per Gem, Ana una. az.
the restricted whom the Bank directors feed and
the trusted merchants whom other banks aud bill dis
counters supply money, have their wants sup
piled nj those rates How many fail 10 obtain accom-
mediation altogether only be known approximately
TO few aud can b. known exactly to none. II H. how
ever notorious that the who found smiling vel
come three -four years IN many bank parior
vanly seek sdmttsnce into any. ts easy 10 work out
the consequences OF this change The men OF repute
and proved stability cannot al . moments notice.
even Il II we're thor nature 10 do SO develop chan
nes for the profitable employment OF capital II Us
agreeable 10 them class pursue their accustomed
courses and all they do widcn and extend their
themselves fnen OF cautious temperament and the pru
dence which leads bankers aud money lenders TO trust
them only inects them in turn, snd induces them TO
curta rather than 10 enlarge their trust OF others The
effect OF sneh phase OF dists, that through which
the comm erca world has passed since last year IL 20
shut ont the speculative man altogether from the posi-
biitv OF action and TO make the cautious dealer moro
cautious still The whole Of trade shows cor
responding dimnuiion in extent. Stocks are barely
much ss possible; each and all endeavor to restrain
their operations within knosn and easily controlled
| limits
There h no records secret in the present situation OF
commerce and There Is no and immediate
remedy which can be applied TO ITS evils ne roo,
Of ns rsofv personal, and only BY foc degrces that
N. disrva of ne posesors ofcdptal con cboed There
have indeed been accidental circumstances which have
helped to ssgrayats the intensity and duration o. the
az of suspicion whcn has followed IL Of too easy con
hdencs We have had 10 pay about six millions more
for imported corn in the nrst months Of this year
than had 70 pay 10 the sans period Of 1865. The
| apprehension Of war the continent in the spring
checked renewal OF confidence and the rumors Of
the fortnight have again not without Their IN
| fuencs. Our colonial markets have been injured
| BY the wave Of the financial panic OF last year.
One Of our bsa cwto~es--oe Unt Satss-,s ntsr,no
from, TIE pcsve Of yssre issaion, and suv exports
10 TIE pors Of ne Noyh haze fallen Of AZ hs core OF ne
year % ne ,5tnf Of three miions But the real spring
or the ills Of the commercial community IL 10 be found
home The seat Of sensation In that huge com mercs
which, serpent Ike, encoils the world here Ihere
dsrust In London, and s effects srs felt IN the ~
| hottest parts We suffer, and oil the extent on On or
ganizatou sensitive u u suffers With us NOV
long tins must elspss before reasonable conndsncs