On this page
-
Text (7)
-
No 476, Ma* 7,1839.] THE LEACEB, 599 ' 1...
-
C G M M E R C I A L.
-
EFFECTS OF THE PANIC. The panic which we...
-
MONEY MARKET & STOCK EXCHANGE.
-
JSskeles, lias excited groat consternati...
-
BANK OF ENGLAND. ^. t . An Account, purs...
-
Opbning of t«b Cornwai^ Railway.—Tho Sal...
Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.
-
-
Transcript
-
Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.
Additionally, when viewing full transcripts, extracted text may not be in the same order as the original document.
No 476, Ma* 7,1839.] The Leaceb, 599 ' 1...
No 476 , Ma * 7 , 1839 . ] THE LEACEB , 599 ' 1 ^^^^^^^¦^^ fc ^^^^^^^^^^^^^^^^^^^ J ^^^ M ^^^^^^^^^^^^^^^^ B ^^^^^^^^^^ P ***^^^^^^^**^^^^^^****^*^^^^*^^^ ' ^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^^^^^^— ^^^^^^^^^^ m ^^^ MM ~^^^^ M IM ¦ M TKW ^ M H j " ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ W ^^^^^ " ^^ fc ^^^^ M *^^ MM ^^^^*^^^^ P ^^^^^^^^ ElW ^^ . ^* J »^ HMfl ^^^^^^^^^^^ M
C G M M E R C I A L.
C G M M E R C I A L .
Effects Of The Panic. The Panic Which We...
EFFECTS OF THE PANIC . The panic which we noticed last week is now nearly over , though it did not cease without two or three more failures , and has resulted in a general , and probably permanent , fall In securities . Consols , on Wednesday , were lower than on the day when it was announced that France and Russia had entered into an alliance offensive and defensive . The similar nature of the two Governments , and their common desire of aggrandisement , gave probability to the tale , and it was as readily believed as the report of an insurrection in Italy . It was m conformity to expectation . But now that it has and officiallcontra
been repeatedly , positively , y - dicted in many ways , the fall in Consols and all other securities continues . We are inclined , therefore , to infer that the pi'evious price of Consols and other securities was too high—that it must have fallen whether there had been war or not , and whether or not Russia had made such an alliance With France . It would be an error , therefore , if this view be correct , to ascribe all the losses on the Stock Exchange to the war . The subject is of great importance to future speculation , and therefore the grounds of the inference are worth consideration . . In consequence of the failures of 1857 , _ enters prise of all kind has been very much diminished or suspended throughout 1858 , and is yet very slack . Capital has been comparatively little in demand , and it has flowed readily into safe securities yielding a low rate of interest . This condition , of things has been coxmnon to the whole commercial world , and securities have borne a higher price than would otherwise have been warranted . ' JSTow pur trade is extending very rapidly ; every month shows a great increase of our exports . The same is the case in other countries . The . Neib York
Tribune of April -18 th , after referring to the almost total suspension of enterprise in 1858 , says : — " Manufactories , furnaces , and forges are generally at work again . Nearly all who can do anything have work , if they see fit to do it . Wages are generally higher than at this time last year . Trade is brisk , and is generally supposed to be , healthy . The imports at this port for last week exceeded , in Custom-house valuation , six millions of dollars—an amount rarely , if ever , sux-passed—and probably cost at least eight millions . U p to April 9 th , the merchandise entered at this port since January lst was invoiced at sixty-five millions of dollars . "
financial projects was proved to be a . fallacy . Independently of war , it may be presumed now that , trade is reviving , that it will extend very rapidly ,, and that new enterprises will beget a irreat demand for capital . With-a . high price and great demand for money , Consols at par , or nearly at par , are incompatible , and we therefore are inclined to think that much of the fall which has taken place was inevitable , and the " price of securities is not again likely to rise to the level it had reached before the war , and the rumours of wartreaties had beaten it down .
It is proper to put on recoi'd , as we have now done , and did last week , the increase of our trade with the changeable value of securities , arising from a change " in the value of mpnoy---independent of the war demands , whatever they may ultimately turn out to be , because such events as the commencement of a war establish epochs in history , and around them are always grouped many subordinate events which are only slightly and incidentally connected with them . An
increased demand for capital , and a corresponding rise in the value of money have taken place , in part irrespective of the war , but is vei-y likely to he referred wholly to it . The demand for shipping has steadily increased through the year , but may probably be attributed to the war demand for coals which has affected freights at the North pf England . We have learned from various facts in our time that the conseoiueiiees of such great
events as the beginning ot war or _ peace , are very rarely , properly , and justly appreciated at the time they occur . There was , tor some years after the peace of 1815 , very considex ' able disorder in the produce markets ; gluts and dearths wex ^ e altei-nately complained of , and were generally attributed'to the peace . Expexience has convixxced us that they wei'e entirely the consequence of the false and fatal system of pi'otectioix or restrictions on trade , and have been corrected though not yet wholly , obviated by a mere approximation to freedom . Some ¦ writers now threaten the world with coxxsiderable disasters from a sux-plus of gold * and now we have more than one GovexTxment forcing their
subjects to dispense with using it . And now , consequently , whatever disox'der xnay arise in the money world—whether due or lxot to the wax *—will be attributed to it . We remind our readers of such circumstances ,. to guard them against ascribing all the changes which may iixmiediately or soon hei'eafter occur in production in prices in trade , and in various other social relations to the war now unhappily begun .
With this increasing demand of capital for tx-ade , previous to the wax ' , loans were negotiated or announced for the Indian Govermxient , for Russia , and for Turkey . AH these wei'e far more advanr tageoxis investments than Consols at 97 or 95 , and in face of this incx-eased demand for money at higher rates than they yielded , the price of them would naturally and necessarily fall . At this time last year Consols were 97 £ . At that period , whatever might have been the momentary pressure on the Stock Exchange , enterprise was vcxy generally at a stand still , and such a price would only bo warantable with a permanent rate of interest at 3 per cent . At the some
period in 1857 , when enterprise was very active but was acoompanied by suspicion , Consols were at 92 i { . Then the rate of discount was Oi por cent ., and thex'o was considerable dread of commercial failure . If 1858 were exceptional as the year immediately af ter the crisis , 1857 " was also exceptional from excessive speculation . The price of commodities of all kinds was unusually and abnornmlly high ; and quite as exceptional ns were the prices of 1858 from being unusually and
abnormally low . In April , 1850 , the price of Consols was also 92 , and just then the war demands on capital had ceased . But independently of all political vicissitudes , since 18 . 51 , trade has cverywhex'e boon rapidly extending , new enterprises till the end of 1857 were continually coming forward , and there was an increasing demand for capital . The rate of disoount , and thp interest of money were , from 1852 , continually high , and the presumed permanent or standard rate of 3 per cent ., on wUioli Mr . Gladstone built some of his
Money Market & Stock Exchange.
MONEY MARKET & STOCK EXCHANGE .
Jsskeles, Lias Excited Groat Consternati...
JSskeles , lias excited groat consternation . Xins house , like many of tho bunking firms on the Continent , and liko tho Scotch Bunk , had , wo believe , a groat number of running acquunts j wo havo hoard thorn vaguoly estimated at 6 , 000 , on which it was accustomed to make advances , and it is supposed that the suspension will cause prodigious inconvenience to tho manufacturing and mercantile classes of Vienna and the neighbourhood . Tho rise there in tho rate of discount : tends to confirm tho suspicion , and it is supposed , that should tho suspension contlnuo , it will involve n great number of other failures . Wo heard , therefore , with satisfaction , towards tho close of business , that ne \ vs had reached London that the house will bo supportod , and if posdjiblo , will continue its business . Whether it resume
Friday Evening . Wu have noticed elsewhere the further rise in the minimum bank rate of discount which was settled yesterday and to-day . We find that this rate , 4 J per cont , is the lowest in the market . As the rule , private lenders require something above this rate , which is , wo take it , a sure forerunner , of a further rise in the bank rate . Tho demands of tho different Governments for money , coming on the heels of increased demands for trade , is whipping up . ' lhemarket very smartly . At Berlin the rdte of discount has already been raised to * 0 por cent . At Vienna , whore money matttors scorn already to have fallen into confusion , 10 per cent , is demanded . There tho susnension of tho large banking house , Amstein and
business or not , as its suspension is supposed to be a direct consequence of the funds of the National Bank , on which it was accustomed to rely , being diverted from trade to Government , we may class tliis disaster as one of the consequences of the war . Those who have most x * eflected oil the vast extent to which credit now enters into all mercantile transactions , will be , we think , the most filled with , apprehensions at the probable consequences of a war which has commenced by the Government of Austria striking a fatal blow at credit . Months ago we did what lay ia our power'to rouse the monied and mercantile classes to express a strong opinioxx against the Governments engaging in this war , and they will be sure to suffer from it being prosecuted .
On the Stock Exchange to-day there has been comparative quiet , but this is more I he consequence , we believe , of a resolution adopted to give all parties concerned in Consols time till Monday evening to enter into arrangements , than of a restoration of confidence . Composition and settlement in the best possible manner are recommended and adopted ; and to-day no business was done , because at present it is not known who can be trusted . Before the business is wound up it is supposed that there will , be not less than seventy defaulter *); bxxtthe whole extent of the disaster will not be known till Tuesday . For the account no business is done , and future prices are only nominaL Money stock is very scarce . The price
to which Consols have fallen has tempted the pixblxc to buy , and there is no longer any to be sold . Its price , therefore , is nominal , too ; but this present scarcity will beget an improvement . A period more trying than the last ten days has never been known on the Stock Exchange , and the great , and probably permanent , fall in securities of all kinds has weakened , not to say destroyed , many fortunes . To lose life . in battle , in a condition of great excitement , seems a light evil , compared to living for years with blighted liopes and curtailed means ; and we must , accordingly , look elsewhere than the battle-field for the most heartrending and most lasting consequences of war . The bank accounts fully justify the rise in the rate of discount .
Bank Of England. ^. T . An Account, Purs...
BANK OF ENGLAND . ^ . . An Account , pursuant to the Act 7 th and Stli Victoria cap . 32 , for the week ending- on Wednesday , the 4 th tlay of May , 185 V : — ISSUE DEPARTMENT . Notes issued £ 31 , 040 , 035 Government D . ol ) t £ 11 , 015 , 100 Other SouitritluB .. 3 , 45 » . » 0 O fjold Coin & Bulllon 10 , 071 , 035 dilver Bullion .... £ 31 , 040 , 035 £ 31 , 040 , 035 BANKING DEPARTMENT . Proprietors' Capi- Government Socutal .... £ 14 , 553 , 000 rities ( Inclnrtlnpc Best . 3 , 103 , 488 ¦ J- > u" » d W . ^ ht Public Deposits ( in Annuity ) ....... . £ 11 , 371 , 11 « eluding Kxche- Othur SccuritioH .. 10 , 137 , H 4 ouer . Savings ' . Xotos ,... 8 , 7 U 0 , 3 fio Banks , Conunls- Gold , and hi Ivor „ . ' sionors of Na- ( Join ..- j . O'H . Hj tional Debt , and Dividend Accounts ) 5 , 408 , 008 Other Deposits .... 15 , 003 , y 71 Seven Day and other Bills 784 , 700 . £ 30 , 033 , !>; i 7 £ 30 , 033 , 227 M . MAKSHALI ,, Chief Ciwhior . Dated May 5 , 1830 . ^
Opbning Of T«B Cornwai^ Railway.—Tho Sal...
Opbning of t « b Cornwai ^ Railway . —Tho Saltash-bridge ; or Royal Albert-bridge , of the Cornwall Railway was formally opened on Monday by tho Prince Consort . Tho work , which lias been under the superintendence of Mr , Brunei , lias been several years in construction . Groat proparations wore made by tho South Devon Hallway Company and tho Cornwall Railway Directors , as also by the military and civil dopnrtmi'nts , to welcome his Royal Highness ,. who loft Windsor Oufltlo about 0 a , m ., by special train , and arrived at the bridge 8 OOI 1 after noon . Tho Prince simply opened tlio bridge by crossing and rocrosslug , time not permitting llim to prooeod any distance into Cornwall , and the same cause also prevented the ««« option of any addresses . Tlio regular truffle of the lino will cmnmoncothis day , and tho inauguration of tho railway will bo celebrated at Truro by a grand banquet The remainder of tho llao below Saltash was formally opened by tho directors and a largo Bpeolal party inimodlatel / aftor the dopurture of tho Prince Consort .
-
-
Citation
-
Leader (1850-1860), May 7, 1859, page 23, in the Nineteenth-Century Serials Edition (2008; 2018) ncse.ac.uk/periodicals/l/issues/cld_07051859/page/23/
-