MONEY MARKET.
STOCK EXCHANGE, FRIDAY AFTERNOON.
THE directors of the Bank of England, yesterday, reduced their rate of discount from 5 to 4} per cent. It was generally anticipated that this step would shortly take place, but iu most cases it was thought that there would be a delay fbr a week or two. At the same time, the general Discount Market remains easy, and transactions take place at a fraction below the terms at the Bank. This afternoon, however, the demand has somewhat increased.
On the Stock Exchange there has been a slightly more extensive inquiry for loans on Government Securities, and this morning 4f per cent. was paid. Later in the day the rate went to 4 per cent.
The discount houses and joint-stock banks have lowered their al- lowance on deposits, the present terms being, at the former, 3f per cent. for money at call, and at 31 with a few days' notice. The joint- stock banks give a uniform rate of 3f per cent., except the London and Westminster, which allows 3f per cent. on sums of 5001. and upwards, and 2f for lesser amounts.
The funds this week have been rather firmer, owing partly to the favourable weather, and partly to the reduction in the Bank rate. The closing quotations of Consols this evening were 90f, 901 for money, and 90i for the 10th of September, showing a rise of more than a quarter per cent. The new Indian Five per Cent. Loan has again been considerably in demand, and has improved to 101*, 101k. The transactions in Foreign Stocks have been generally unimpor- tant, the principal change being a reaction in Turkish Six per Cents. of 1858 to 68:f, 63i Equador New Consolidated has advanced on the announcement that some merchandise has been forwarded to the agents of that republic in London, to be sold, and the proceeds applied to a dividend. Mexican remains dull at 22, 22f. British Railway Stocks have been affected by the low dividends lately announced, and at one period had declined considerably, London and North-Western being especially flat. To-day, however, the ten- dency has been rather better. Brazilian Shares and Lombardo-Vene- tian have improved. No change of importance has occurred in the Miscellaneous Market. A new company has been started in London, called the Commercial Union Fire Insurance Company, with a capital of 2,500,0001. This company, in its prospectus, states that it has been formed in conse- quence of the increased rates charged for the insurance of mercantile risks.
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