20 JANUARY 1838, Page 14


In the City article of the Morning Chronicle for Wednesday, the effect on the Money-market of Lord DURHAM'S appointment to the Dictatorship of the North American Provinces is thus de- scribed— " The appointment of Lord Durham to this important trust in Canada, added to the debates on the affairs of that colony in the House of Commons last night, has given the greatest satisfaction in the City, especially amongst those more closely connected by their commercial transactions with the revolted province; as matters, it is hoped, will now be adjusted with decision and promptness, and measures adopted to prevent any further opposition to the acts of the Executive. In the English Stock market, a material effect was pro. duced, and an advance of j per cent. took place in Consols; while things gene. tally looked more cheerful, and business was animated as well as extensive." Not content with this announcement, the Chronicle had a puff- ing paragraph in another part of the same day's paper- " One circumstance stated by our City correspondent, the instant rise of percent. in the Fowls, indicates very significantly the opinion of the moneyed men, that the chances of a speedy termination of the dissensions in Canada have been greatly increased by Lind Duthata's acceptance of his high trust."

The Globe on Thursday followed in a similar strain- " The continuance of adverse winds deprives us of any later intelligence from Canada; but the tone of the debates in Parliament, and the announce- trent of Lord Durham's appointment to the Government of our North Ame- rican Colonies, have alarmed the patties who have been speculating upon a continuance of the discontent existing there: many of the Bears in Consuls begin to lose their confidence, and show some anxiety to buy back the stock they had previously sold on the strength of the Canadian war, which they had M prospect. The natural effect of this change of feeling is manifested in a steady advance of pricer, which rule now fully per cent. :Move those of yes- terday morning, and with a firm market indicatiog a further rise." How very pleasant! Thundering majorities in Parliament, Stocks rising, all joy and exultation out of doors. Fortunate Lord GLENELG 1 wonder-working Lord DURHAM ! But stop. What is this ugly memento in the Times I' " Consols on Wednesday closed at 913, sellers, for Money, ex. dividends tieing an advance of per cent. upon the last quotations of Tuesday. For the Account, the price was precisely the sane as for Money ; which indicates a want of confidence by speculators in the stability of the market. It is said that the advance to-day is mainly attributable to investments, though on a small scale, on the part of the public, with whom money has been made abundant by the payment of the Dividends." And again in the Courier of Thursday- " Consuls were very first earlier in tie day, and were done at eta buyers; they hare since receded to 94 to the present quotation for Money and Account."

Worse still yesterday—

Consols for the Account, 911 to I."

The result, then, of the great sensation in the Money-market, is a rise of less than a half per cent. in Consols, which is not ex- pected to be maintained even for a few weeks together ! And this trifling advance, caused probably, as the Times suggests, by opera- tions unconnected with politics, is laid held of by the Ministerial writers as proof that the public approve of the conduct of Govern- ment towards Canada, Will these eager partisans of the Ministry act fairly in this matter? Will they admit a decline in the price of Consols as evidence that Lord DURHAM'S mission is unpopular, and alarming to the monied interest ? Will they im- pute the distrust as to the stability of the present prices of the Funds, indicated by the fact that the price for Money and the Ac- count is the same, to a want of confidence in Ministers, and fear of the failure of the Canadian Dictator? Or will they not, on the contrary, be silent on the subject of a fall in the Funds ?

The political importance attached by many to variations in the Stock-market is quite ludicrous. By a purchase of some 50,0001. in Consols, a broker can i:eutralize the effect of the worst political news. A large sale will depress prices in despite of an increasing revenue, a prosperous commerce, and the prospect of continued peace. The fluctuations are.not to be accounted for on any fixed or rational principle : they arise frequently from latent causes. The sale or investment of the accumulations of the minority of some modern Cream's will affect the prices of five hundred mil- lions of stock, and give rise to a multitude of rumours respecting the fate of parties and of nations.