Year: 1875

OVERFLOW OF COIN AND BULLION IN THE BANK


OF ENGLAND-LowEsT RATE OF DISCOUNT


AN ACTIVE ADVANCE IN UNITED STATES Sc


CURITIEs-REvIEw OF THE GRAIN TRADE


LONDON August 16 1875.


The Unprecedented abundance of money continues,
and, far be seen, will continue for time.
Money flows into the Bank of England from all quar-
ters and large rcmances of specie arriving and
their way from the United States and Australia.


The lowering the bank of discount the 18th
inst. to two per cen-a rate which has been reached
before, but is the lowest record-was generally
tcipated, and, indeed for days previously the
leading discount houses had reduced their quotation to
u still lower figure for the best three months paper
The total coin and bullion now in the vaults of the
bank stands at the unparalleled figure of E29 o00 900
sterling, and the reserve at Els SOC, 600.


1t remains to be how this superabundance Of
money will be worked off. The value of money being
considerably below that ruling at of the
tinenta centres export Of specie must be the result
ami already the fall in French exchange to % 1917 is
attracting attention, that quotation being only three
centmes above the specie shipping point. 1t is to be
hoped that overstocked money bags will not be put
at home in the shape Of wild speculation.
But there many who think such future is impend-
ing The late failures and financial revelations have
done their full share bringing about this plethora Of
capital out of work. many of the usual channels of
blocked up and capitalists restrained
by feeling of uneasness and by want OF confidence.


EFFECT oP THIS WIDESPREAD CAUTION
has been greatly enhance the value of the best
vestment stocks and bonds, the low of interest
allowed on deposits stimulating the demand. All
classes of the best American securities have
qucntly great favor the funded loan especially
The existing issues of five per bonds of the United
States being in process Of redemption, active
advance is stimulated in that class Of securities when,
present, demand for nvestIr ent arises The
tent of the demand may be judged by the present prices


IMPROVEMENT IN AMERICAN SECURITIES.


Thus although this is the dead season-the time Of
all others when Stock Exchange lie idle and
dealers orsake for their annual hoday-the ease
of money and the mentioned above have occa-
ned a steady improvement in almost the whole list
of American securities and prices for the best railroad
bonds have reached points hitherto unknown. The
The daily quotations by cable which your enterprise
lays before your readers, will have kept them fully
posted the healthy and satisfactory affairs


ADVANCE IN ERIE AND ILLINOIS RAILROAD SHARES.


Erie common and preferred shares have been one of
the features OF the market for the past few days the
latter having risen much six per cent in the week


favorable opinion TO the result of Sir Edward Wat
kins' mission and the prospects OF increased tall and
winter traffic have been the chief reasons for the adj
vance the latter being, perhaps, tho more powerful.
Rumors Of the adoption by the authorities IN New
York Of the scheme Of reconstruction have been
circulated rom time to time, and II Is doubt
quite natural that the large English interest in the
company should seek TO be properly represented and
have their say At the time has been observed
that with such an able man as Mr. Jewett at the head
OF affairs there Is not much fear of further msmanage-
ment and it is not anticipated that Sir Edward Wakn
or, indeed any else might send from here will be
OF much service to Mr. Jewet in the work Of
sructOn or be able To propose any scheme suggest
any Improvement that has not been fully proposed and
suggested on your side already Illinois shares, which
had been depressed owing to reports OF the damage
caused by foods nave recovered and have participated
ia the general advance


THE GRAIN TRADE.


The rain which fell during last week throughout the
United Kingdom caused delay in harvesting and still
further deterioration the quality oor crops For
the last three days, however. the weather has been
magnificent and its influence has made itself strongly
felt in the grain market, producing decline Of 2s 81.
per quarter But however much the brilliant weather
may assist the garnerng and gathering in Of the crops
there is general Impression that the quality Of wheat
will be decidedly below tho Acrage, and that. compared
with last year the deficiency Of quality and quantity
will be considerable


business now rules dull milcrs not beng anxious In
the face Of large and increasing mporatiOns ada
the purchases they made since the weather first became
unayorabc, their argument being that If last seasons
low prices brought 80 OOU 900 hundred weight of Tor
egn wheat and Hour tins years enhanced prices
attract u still greater anonnt-mOre IN fact, than we
require Time will show low far this Wow is right or
wrong


Accounts from the southern countries Of Europe are
generally uniavorable as compared with last years
crops, and prices are reported Us fairly steady.


No doubt change Of weather came only just in tmo
to save the rpening crops III many parts OF Europe
from immediate rum, ana, now that the danger s past
and the skies serene OF course there those who
say there needless panic. They will receive their
best answer from the of prices The reaction
tar has been very kabe and there indica
tlons that the prices asked which are from two
shtllings to three shngs below the highest points
reached bottom and that need not expect 10
any mrther decline OF Importance.


The American crop Is expected to have dominant in
nuence on the markets OF Europe, that there IL
prospect OF small supplies from nearer countries. The
strong demand for floating cargoes which existed the
bennning OF last week has been checked by liberal
arrivals and by the tendency TO weakness Ia your mar
kets.


AN INTERESTING FACT.


A correspondent OF the London Times wrtes:-


think that it Is fact worth noting that only the
four following occasions since lT13 has the Bank Of
.L-.L lunna 1lAAnn l.l.