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Leader (1850-1860), 14th May 1859, Edition 1 of 2, Page 626, Untitled Article

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    • C QMMEECIAL.
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      Untitled Article

      niBLE stock market has become quiet , and Consols have settled down to between 91 and 92 . A month ago the price was between 95 and 96 , and the fall which may be regarded as permanent is 4 . * Ehe still lower price to which they fell last week and the week before tempted the public to invest In them , and tempted speculators to go for a rise . At present the investments of the public have almost ceased ; speculators have been realising ; and we may now , therefore , consider the panic as entirely at an end , and the price of stocks , to , stand at the figure warranted by the actual condition of the money market . .

      This comparatively settled state of things has not been reached without several additional misfortunes . Last week we stated that before the accounts were entirely wound up , there would probably be not less than seventy defaulters . Then about fifty had been declared ; and this week , -when the accounts were finally closed on Wednes--day , seventeen more members of the Stock Exchange , to whom a delay in settling their accounts had been accorded , were declared to be no longer members of the establishment- —their default

      carrying with it expulsion from the body ; The total number of stockbrokers is about 500 , to which , to complete the members of the Stock Exchange , must be added 200 for the jobbers ; so that , assuming the number of defaulters to be exactly seventy , abeut one-tenth part . of the body have been removed . There is no example , we believe , of an equal number being at one time cut off ; and the panic , in its disastrous effects , has undoubtedly been one of the most serious on record . We must now state that some features of the money market in the interval are deserving of notice . In the middle of March , tke notes of the Bank in circulation amounted to 21 , O 9 ( 5 , 253 Z . ; last week to 23 , 040 , 4452 ., or between March 16 th and May 5 th , they increased very nearly 2 , 000 , O 0 OZ . ( 1 , 944 , 182 Z . ) . In the same interval the bullion and coin in the Bank had declined from 19 , 922 , 723 * . to 17 , 205 , 4802 , or 2 , 717 , 243 Z . ; and the reserve had declined from 14 , 066 , 4772 . to $ , 424 , 7952 ., or 4 , 641 , 682 ? . The continued augmentation of the circulation in this interval , shows a continual demand for money ; and the decline in the reserve—though partly due to payments on Account of the dividends— -with the decline in the

      par . Before the close of the year , however , the apprehensions of a war with Russia became rife , and from an active trade , with a , foreign demand ^ the gold in the Bank had declined to 15 , 400 , OOOZ ., and Consols had sunk to 94 . The rate of discount had risen to 5 per cent ., showing the close connection which existed then as now , with a demand for money to carry on business , and a reduction in the value of securities . We are not disposed to infer , from the Bank losing bullion , that the capital of the country is decreasing in like proportion . Last week there was a decline in the corn markets , which has continued in the present week . The previous rise of about ten shillings per quarter was sufficient to induce the farmers to supply the market liberally ; and hence it may be inferred—as , indeed , we know—that the stock of breadstuffs on hand—the most essential portion of capital- — -is not small . Had it been deficient , the increased supply would have come forward much slower . It is pretty much the same with other commodities . Capital is not scarce , but the demand for it is increasing . Trade is undoubtedly impeded , to some extent , by the war , but not much ; for if the exports of some manufactures be checked , the export of coals is

      increasing , and the demand for freight has increased . All the industries that supply pur daily wants , or in any way-minister to them , must be continued ; while the demand of the Government for more seamen and soldiers adds , for the moment , whatever may be the ultimate effects , to the demand for labour and capital . There is probably now more of both than ever before , but the demand for both is also greater , and is at this time comparatively active . The increase in the value of money is far less the consequence of any deficiency of capital , than of the great increase in the demand for it . For the development of the . effects of the war abroad on trade and money we must wait—they cannot be predicted .

      bullion , show the decreased power of the Bank to aupply it . In the same interval the issue of notes by the Bank fell off from 33 , 680 , 950 / . to 31 , 046 , 0352 ., or was 2 , , 9152 . less , while the "want ? pf the public -absorbed nearly 2 , 000 , 0002 . more . As the rule , the lessening of the means of the Bank implies a lessened power to lend in all other bonks and money "tenders , and thus we are taught that , independently of all political rumours , the altered condition of the money market , as exhibited by the Bank returns between the middle of March and the first week of May , was sufficient to account for a considerable fall in the price of all securities .

      To find as large an amount of bank-notes in . circulation as at present we must go back to 1853 , JflLt no period since , iu any one quarter , has the overage reached 23 , 000 , 0002 . Then , however , the vato of discount did not exceed B per cent . Trade "Was . active and rapidly extending , the bullion was about 19 , 000 , 0002 ,, . and Consols were a little above

      Untitled Article

      Friday Evening . Money is comparatively easy to-day , at former rates . All the pressing demands have , for the moment , become less , but it is not likely that the ease will be permanent . It cannot be supposed that the present slackened demand for trade on account of the interruption occasioned by the war can ever continue . Business must go on , and must , in spite of armies , be extended . They and the war are creating an additional demand for money , and the usual demand for it must speedily revive . It is not likely , therefore , that the present ease . in the money market should bo of long duration . - To-day the final instalment of the Chilian loan

      The debts of Austria , and other States of ft ** many , are held in small amounts by a m-eat num ber of persons scattered throughout Germanv * ?/ ^ If * f ^ the bonds and sS ^ Jf these debts has already been much depreciat ed and thousands of persons are by this injured , or fancy themselves injured . They do not , perhaps trouble themselves to inquire very minutely into the rights of the quarrel ; they recognise the existence of a Bonaparte on the throne of France as the source of danger and the cause of war , and they are filled with animosity against the Emperor and the JYench . They forget that

      in the first blush of his success , when lie was thought to have trampled down revolution they hailed him as the saviour of the thrones of' Germany , and as the guarantee of the obligations of its Governments . Now affairs are reversed . He is supposed to have depreciated' their securities and they are enthusiastic against him . Such is the explanation given here of the excited feelings of the Germans against the Emperor of the French . jc renua . .

      The funds were tolerably quiet to-day—rather firmer , and at the openingand at the close they were—as they have been for some days— -weaken From Paris the telegrams brought a" lull , which affected our markets . Consols were quoted at 91 jto 92 J ; but at the close of the market these prices were not sustained . Business was dull . The monthly returns of the Bank of France show in the month a loss of about one million sterling of bullion , and a large increase of bills discounted , treasury deposits ami private deposits , with an increased advance on securities . Our own Bank accounts for tho week do not exhibit any remarkable change . ? -, vhicu Svill be found below . The arrivals , of bullion are considerable , and the drain of bullion from the Bank does not continue .

      of 1 , 554 , 0002 . fell due , but there was difficulty experienced in paying it . The exchanges generally , and notably those of Germany and Russia , have become unfavourable to those countries . Tho Russian exchanges have fallen from 37 d . per rouble to 32 d ., or about 12 per eent . In these countries tho merchants have bought more than they have Bold , and securities being depreciated , the mercantile classes have purchased all the bills they could collect on England . They begin to suffer . Some of the first-fruits of the war are tasted by the peaceable men of business on the Continent , and their sufferings are saidl to supply an explanation of the anger and . hatred which are now manifested in Germany towards tho Emperor of tho French .

      Untitled Article

      GENERAL TRADE REPOET .

      Untitled Article

      MONEY MARKET & STOCK EXCHANGE

      Untitled Article

      BANK OF ENGLAND . An Account , pursuant totlic Act ~ lh . nnrt Stir Victoria cap . 32 , for the week ending on Wednesday , the 11 th day of May , 1850 : — ISSUE DEPARTMENT . Notes issued £ 30 , 857 , 700 Government " DeW &WW W Other Securities .. : i , 45 !» , t ) 00 Gold Coin & Bullion 10 , 3 $ . ' , 705 Silver Bullion .... — £ 30 , 857 , 705 £ 30 , 857 , 705 BANKING DEPARTMENT . Proprietors' Capi- Government Spcuta ¥ ... £ 14 , fifAO 0 » rili ' H tfnelu . Ui « Rest . 3 , 20 U , < W 5 !>«• : «« V " fVi ogi 370 Public Deposits ( In . Annuity ) ... £ ikS / m eluding Exclio- Other Hocurilli- * .. W ~' -J " quor , Savings' Notes ............ . UW » o Banks , Coramls- Gol d mid bllwr eionors of Na- Coin W ' tioiml Debt , and Dividend Accounts ) 4 , 807 , 880 Other Deposits ..., 17 , 130 , 03 ' - ' Seven Day and othor Bills 831 , 213 . £ 40 , 001 , 153 mooi . io 3 M . MARS HALL , C lilufCiwMor . Dated May 12 , 1859 .

      Untitled Article

      Friday Evening . Aix the markets this week have been dull . The business has been comparatively small , and prices generally have tended downwards . Tea is q ^ ct and steady . Sugar is cheaper . Wheat is a * exception tp the rule . Tho supply sont Jbrwara w tho former has not continued equal to tho irono , and to purchase wheat to-day more money wa given . Next market-day , Monday , a rise o * - «¦ or 3 s . per quarter will probably be declared . ab » war both impedes business and ongrossos an public interest , We must wait for a return _ « peaoo abroad , to obtain for . trade reports mw attention at homo

      Untitled Article

      636 . \ --V . ^ . ' : : WM'te < JL % \ A-i > &J& .. [ . '¦ : .. ¦ [ fofai-477 , May 14 , 185 & '

      Untitled Article

      THE END OP THE PANIC .

      C Qmmeecial.

      C QMMEECi AL .

  • Citation
    • Leader (1850-1860), May 14, 1859, page 626, in the Nineteenth-Century Serials Edition (2008; 2018) ncse.ac.uk/periodicals/l/issues/vm2-ncseproduct2294/page/22/