18 OCTOBER 1845, Page 10

MONEY MARKET.

STOCK EXCHANGE, FRIDAY AFTERNOON.

The long-expected measure of an increase in the rate of discount by the Di- ,fectors of the Bank of England has at length been resolved upon: at their usual weekly meeting yesterday, it was determined to increase the rate from 21 to 8 per mat Immediately upon the issue of the notice to that effect, a decided change was observable in the markets for Railway. Shares, and a general disposition to Fell prevailed. Under its operation, the prices of all descnptions of Shares de- and the downward course continued till the close of business. The letters received this morning from the Provincial Share-markets, where this alteration was unknown generally, having brought orders to purchase, the markets rallied in the course of the morning; to decline again during the day, and at one time 'the aspect was very gloomy. A better feeling has prevailed this afternoon: the dosing prices are in most cases as high, and in some at an advance upon those of yesterday. But the effect upon the English Funds has been more important; the decline of Three per Cent Consols having been about per cent, though an advance of per cent has occurred from the lowest price. The Three-and-a-quar- ter per Cents have at one time today been 1 per cent below the opening-pricer and 'close at an advance of per cent upon the lowest quotation; thus marking a decline since yesterday of it per cent. It is understood that this alteration has been forced upon the Bank Directors not so much by the Railway speculation as by the increased value of money on the Continent; where the rate of interest has been for some time rising, until, in Germany especially, it has increased to and 6 per cent. A similar change, though not to the same extent, has occurred in France and Holland. Of the wisdom of the measure there does not appear to )3e a second opinions: for it is evident that if money be obtainable at an interest of 24 per cent in England, while it is worth from 4 to 6 per cent on the Continent, It will very soon leave this country; and hence, the only way to prevent a drain if gold is to augment the rate of discount. It is generally believed that a far- ther increase to 31E per cent must soon occur, and that nothing but the desire to avoid the creation of needless alarm limited the present alteration to -3 per cent. We have not yet received any intelligence as to the effect produced upon the local -Share-markets; and the opinions of the best-informed persons are so mach at variance that it is impossible to speculate upon the subject. The usual quarterly notice from the Commissioners for the Redaction of the National Debt has appeared: from which we learn that the actual surplus of the -revenue over the expenditure of the United Kingdom, for the year ending 9th ,elaly last, was 3,471,1201. 14s. 7c1. One-fourth of this sum, namely, 4367,7801. Sc. 7d., is consequently applicable during the current quarter to the seduction of the National Debt. Of this sum, 267 7801. as. 7d. is applicable to the purchase of Stock; and the remainder, 600,0001., will be applied to reduc- tion of the outstanding amount of Deficiency Bills.

SATURDAY. TWELVE O'CLOCK.

The English Funds have not improved this morning and are generally rather lower than at the close of business yesterday. No material change has occurred in the Foreign Funds. The Share Market is lower' with some few exceptions. The letters from the Provincial Markets notice a general decline as having occurred yesterday in consequence of the alteration in the rate of discount. We can as yet only notice the following bargains—Caledonian 19* 18; Ditto Extension 41,---1 Canterbury and Dover, 6i *; Eastern Counties, 2.3-4 4; Ditto New, 0* 4-; Bir- mingham, 218; North Staffordshire, 5-A 5 premium • Teen and Dove Valley, 21; Leicester and Tamworth, 2. Attention is again drawn to the amount of bullion in the Bank. The return of today exhibits a decrease of 300,0001.,-as•compared with last week.

SATURDAY, TWO O'CLOCK.

The English Funds- close at the lowest quotations of yesterday, and have con- Isequently fallen to the whole extent of the reaction noticed as having then occurred. The only transaction of importance was a sale by a leading broker of 50,000 Threa- ,M43t Consols at 971 for Account. In the Foreign Market, the principal feature 17elen a decline of more than 3 per cent in Portuguese Bonds, of which a large _parcel were sold at 56; the price afterwards rose to 60 581 and 59, bat again fell to 56. In the Share Market prices evinced a tendency to rally in the course of the day, and many of the smaller shares were at prices higher than those of yesterday: before the close of business, however, a downward reaction occurred; and though no very material fall took place, the markets closed heavily. 8 per Cent Consols ..... • • • 974 f Columbian ex Venezuela • • . 17} 8

Ditto for Account 971 1 banish 3 per Cents 86 8

3 per CentReduced..ex div. 96} I Dutch 2} per Cents 591 891 St per Cents ex div. 981 } Ditto 4 per Cents....ex dlr. 94 6 Long Annuities 101 13-16 Mexican 5 per Cents 311 5}

Bank Stock ex div. -- Ditto Deferred .. . it 18 Exchequer Bills Prem. 44 8 Portuguese Newbp.Cts. 1841 56 9

India Stock — Ditto 4 per Cents 1845 56 9

Brazilian 5 per Cents ex dlv. 84 6 Russian 5 per Cents . ex div 113 /5

Belgian 4} per Cents 99 100 ' Spanish (Active) 5 per Cents 26} f

Chili= 6 per Cents 99 100 Ditto 8 per Cents 1842 34 f