The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-06-05

FINANCIAL Ind COMMERCIAL.
The Bank Of England Advances Its Bate Of
Interest to Per Cent.
TIE PROBABLE REASONS THEREFOR
A Decline in Continental Sc
Curities.
THE STOCK MARKET STEADY
GOVERNMENT SECURITIES STRONGER.
GOLD FLUCTUATING.
No Further Developments by the
Clique.
GOVERNMENT SECURITIES STRONGER.
GOLD CALCULATING.
No Further Developments by the
Clique.
Money Easy, with an Advance in
Exchange.
WALL STREET,

WEDNESDAY, June 40 p. M.
On 'Change to-day cotton on the ''sp0t" re-
NAMED quiet, while .luturesn were active at
steady prices. Flour was dun and lower, wheat
and corn were in fair request but ct easier prices
THE FOREIGN MARKET
The financial community was somewhat startled
this morning by London cable advices announcing
that the directors OF the Bank Of England had ad-
vanced the rate OF discount from to per cent
English papers received to-day enable ms to infer
somewhat OF the causes that have led up to this
movement. First. the "Old Lady Of Threadneedle
street, has not been able to reckon upon her usual
innux Of bullion and coin from abroad. There has
been constant drain made upon the Golfers OF
the bank by Germany; secondly, the next pay
ment Of the French indemnity-to w.t. the pay
ment Of f10.ooo,oOo on the 10th Of June
and this being the first instalment OF
Che last milliard payable Is to be followed by pay
ments OF f1O,oooooo per month"; fact which
points to dearer money on the Continent and an
additional drain on the British market Thirdly,
there has been general decline in the most i'm
pOrtant Of the foreign securities in which England
Is largely interested. According to English market
reports
THE DEPRESSION
has been very very great-say an average Of four
or i've per cent, and the confession is made that
It is calculated to exert disturbing effect For
Continental securities exceeds $1,000 100000, the
average decline on which may be estimated at
and per cent, with resultant difference in
market value of about f100 O0O, 0O0 This has been
brought around by dinerent causes, all Of which
have been for the moment intensified by the
Vienna panic. The political difficulties in France
have likewise doubtless had their influence. and,
France being at the present time the greatest
borrower from England, nothing can AFFECT French
securities without disturbing all. Possibly, the
RECENT DISPATCHES FROM BERLIN,
concerning the reported dissatisfaction OF the Ger
man government with the MacMahon dispensation,
has had Its influence upon British capital, Tor a
political difficulty, whether real or surmised is
serious financial matter. Again, there has been
an immense fall in Spanish stock-a fall Of seven
per cent since March, accompanied by proposed
population in modified shape-that is to say in the
form OF proposal to pay onethird Of the interest
Of the government debt in deprecated paper The
anarchy OF the country leaves no hope for cash
payment. Hence influence on English invest
ments and reflex action through all the line OF
stocks. Italy is not much better of. That country
is also full Of deprecated currency, and the foreign
creditor feels its force. Consequently doubt sur
rounds the majority of Continental Investments
The English market has been overladen.
FOREIGNERS HAVE BECOME OFFENDERS.
And this is one reason why, as may have been
al along observed, our American securities, IN the
shape OF government and railroad bonds have ex-
hibited frmness and found an active market The
advance In the rate OF interest in the Bank OF
England, therefore, would seem to be only pre-
cautionary-a sort Of trimming OF sails" in order
TO prevent further forced depletion OF Its vaults
1t is also to be borne In mind that about the middle
OF September the $15 600, 900 due on account Of
THE ALABAMA CLAIMS
tho rv,fta tofo EunIo ma IL
. present sufferer from a tendency to loan to
other countries which have been constant Dor
fowers, and which pay the interest of old debts
ont of new loans; and IT, in looking over the feld
Che directors of the bank have seen At to 'put
on the brakes" and check the drain
on their funds, our own, first of all
other countries. will derive the benefit, though
we may incidentally have been the cause OF the
trouble by Withholding, as undoubtedly has been
the case, the usual expectation Of bullion upon
which the mother country has in the past at this
season Of the year 30 largely depended. In this
connection IL may be stated that the Bank OF Eng
land to-day received an addition to its balance in
bullion the sum OF f7o,0O0, which, added to the
amount OF f7s,0o0 repor ted yesterday. makes to-
tai OF fl43, 900 in two days. Meanwhile money in
open market is stated to be per cent below the
bank rate on government securities. The rate OF
discount on three months bills in open market at
the close OF business was \ per cent lower than
the bank rate. The new French loan advanced u
Per cent, and American securities were strong
Krie was quoted at 4sH AZ; Illinois Central at So
50. Consols for money were 92h, ex interest;
80 bonds (old), Of 1866, ok; '67s, OAK; 1o40s
eSX; new nves, SsH.
The following are the rates of discount in the
Inherent European cities:-