20 NOVEMBER 1841, Page 8

MONEY MARKET.

STOCK EXCHANGE. FIUE 4FLEHNOO.

The Money-market N -market is heavier this, week; and money has been in very great demand, especially ;luring the early part of yesterday, when it was expected and currently reported that at the uatial weekly meeting of the Bank Directors, held that day, it would be determined to raise the rate of discount. The Lombard Street capitalists were consequently unwilling for some time to dis- count any kind of bills ; but when the meeting of the Directors passed over without any alteration of the kind reported, money became more easy, and although there is a demand for it to day, good bills are readily discounted at 5 per cent. The Funds have given way generally about # per cent. frorn.our, last quotations. The price had fallen about # per cent, at the close of business on Wednesday ; to be depressed to the extent already stated in the course of yesterday morning by extensive sales of Money Stock, made by the brokers of the Scotch Banks and the Equitable Office. Although there was afterwards it rally of # per cent., the market has again given way, and after being at the lowest quotations, has improved about A per cent. at the close of business. It may be remembered, that in noticing the recent improvement in the Funds, we stated that it was in some degree to be attributed to the impossibility of the subscribers to the new funding paying up their Scrip and creating Stock, in consequence of the suspension of business in Exchequer Bills, occasioned by the Government having determined to stamp those -securities; and that an artificial scarcity of Stock was thus created. From recent circumstances it would appear' that this opinion has been well-founded ; for as soon as the Scrip-holders were enabled by the purchase Of Exchequer Bins to pay up and convert their Scrip into Stock, the market was supplied, an immediate change took place, and Stock, instead of being scarce' became abundant ; while it will be seen from the fluctuations of yesterday that a very large quantity is pressing on the market. By the last statement of the liabili- ties and assets of the Bank of England, the bullion in store had diminished 222,000/. as compared with the amount in October. Although this diminu- tion is small if compared with that of last year, when during the cor- responding period the amount declined 416,000/., yet as it is anticipated that the importations of foreign corn in the spring will he very consi- derable, it is believed that the amount will still be materially: decreased, and that consequently the Bank will soon be compelled either to increase its rate of discount or limit its accommodation. We may therefore expect that, for some time to come, our capitalists will not be disposed to lend money freely, and that on every succeeding Thursday we shall have to recount the expecta- tion of some movement on the part of the Bank Directors, and consequent refusal of discounts, that existed yesterday. Both India and Bank Stock have shared the fate of the Government Securities and are about 2 per cent. lower ; the former having been done at' 245, aud the latter at 163; Bank Stock has since improved- to 1634. The premium upon Exchequer Bills continued during the early part of the week steady at from 10s. to 12s., but declined yesterday to 7i., closing at from 7s. to 9s. premium; an improvement of Is. occurred today, and the price may be quoted at 8s. to 10s. This decline is generally attributed to the demand for money; but we cannot help thinking that the public confidence in these Securities has been shaken more by the exposure of the careless way in which the business of the Exchequer Bill Office has been conducted, than by the actual fraud itself, and that when .1he demand for these Securities now existing to make the payment upon the Scrip shall cease, a considerable decline must occur. Beyond the committal of RAPALLO for trial, no new fact respecting the Ex- -chequer Bill fraud has come to light, except the refusal by the Exchequer to acknowledge as genuine two bills which have been proved to have been issued -regularly from the Exchequer Bill Office ; thus fully making out our assertion when first called upon to i explain this subject, that the Exchequer test for the validity of the bills issued s very uncertain. Among the various suggestions for the future conduct of this branch of public business, the following appears to be the most eligible. It is proposed that the business of the Exchequer, as far as relates to the issue and exchange of its bills, should be removed to the Bank of England ; and that, for a trifling fee, any inquirer may be instantly in- formed of the validity of any !mount of Exchequer .Bills in his possession. It is well known that the fee required upon the stoppage of a bank-note is 2s. 6d.; and if some such trifling sum be required to be paid on each inquiry as to the validity of Exchequer bills, it would stop idle curiosity and be acquiesced in by real holders. The circulation of Exchequer Bills is almost entirely confined to the City ; and if some plan of this sort were adopted, it would be clear that she chance of immediate detection would effectually stop the circulation of forgeries. The objection to this arrangement would be the chance of fraud on tile part Of Bank-clerks, as in case of the Government clerk, MT. BEAUMONT --_Smimrr. But, in the first place, if the Bank undertook this business, receiving trf course a percentage upon the bills in circulation for their trouble, as they now do for the management of the Public Debt, that corporation, and not the public, would be the sufferers by any frauds committed by their own servants ; and they would not, as men of business, chine the establishment with 4,200/. a year under the head of pensions and salaries to officers doing but little. The actual and responsible labourers would be liberally paid, and the chance of mal- versation consequently less. WO also know by experience, that the amount of bank-notes in circulation has for several years been nearly equal to the amount of Exchequer Bills ; although the circulation of forgeries of the former is much Inure easy than of the latter, we have never yet heard of a fraud of a similar nature to the present in the issue of bank-notes, and are therefore bound to Infer that the Bank of England have conducted their business upon a system of efficient checks; while it is quite clear from the mode in which the business of the Exchequer Bill Office has been performed,that there has been no effective supervision of its internal arrangements. There have been some more considerable transactions in the Foreign Funds than usual, but no vqy great variation in price has occurred ; almost all the "current varieties being nearly at our last quotations, though in some cases heavy in consequence of the decline of the English Funds. Spanish Active, :which had been at 211, declined yesterday to 214 ; but has resumed the former quotation today, on the occasion of an improvement of per cent, in the price of the stock at Madrid, and the revival of a plan for consolidating the over-due

• Coupons. Portuguese Bonds are also firmer, at nearly 4 per cent, advance on our • last prices. Mexican has given way, upon receipt of intelligence of the late insur i - .rectionary movement; but as it s generally believed that the supremacy of SANTA. ANNA N% ill be established, the market is firm at the decline of 4- per cent. Columbian and the other South American were in request, but are to- day feeble. The Railway Shares are generally as last week, and the transactions in them are but few.

SATURDAY. TWELVE o'ciocx.

There is no new feature in the English Stock-market this morning, but prices continue in a very dull and languid state : Consols for Money 884 4, ditto for the Account 984 4; Three per Cent. Reduced 87g 4; Three-and- a-half per Cents. ditto 971 g ; New. Three-and-a-half per Cents. 984 1. Bank Stock 163g 44. India Stock 2454 64. Exchequer Bills 8s. to 10s. In the Foreign house, Spanish Stock has advanced 4 per cent., owing to the receipt of higher prices both from Paris and Madrid, and may be quoted at 211 4. In other Stocks no business of importance has been transacted. Portu- guese 30 to 4, ditto Three per Cents. 18 to 4; Dutch Two-and-a-half per Cents. 511 4, ditto Five per Cents. 991 4; Colombian 184 194; Mexican .2,44 5; Danish 784 94; Belgian 1001 1.

. SATURDAY, FOUR O'CLOCK. The English Market leaves off this afternoon with a trifling advance, and prices may be quoted generally a shade higher : Consols for Money 884, 4, . ditto for the Account 881 buyers; Three per Cent. Reduced 874; Three-and- -a-half per Cent. ditto. 874 4; New Three-and-a-half per Cents. 984 L. Bank , .1.tock 1634, 4g, Exchequer Bills 8s. to 10s. India Stock 2454, 64. •• .. The Foreign Market also wears at improved appearance; and Spanish has tavanced to 224 to 4. The other Stocks are for the most part rather higher : Portuguese 304 1, ditto Three per Cents 181, 1; Colombian 19 to 4; Dutch 24 per Cents. 514,4, ditto Five per Cents 9944; Mexican 25 to 1; Belgian . 1001 1. 3 per Cent. Consols 1 Columbian 6 per Cents . ... 181 19}

Ditto for Account 881 I Danish 3 per Ceuts 78t 9} - 8 per Cent. Reduced 87} 1 Dutch 2} per Cents 51* * 3* per Ceet. Ditto 971 } Mexican a per Cents. Comet. 24} 5

Itie-e,3} per Cents 981 4 Portuguese Regency a per Cu. 30 *

Bank Stock 165} 4* Ditto New 5 per Ceuta. 1841..

Exchequer Bills 8 10 pm. Ditto Spec Cents 18 } India Stock 245} 6* Russian 5 per Cents ........1114 ... I 11} 12} Brazilian 5 per Cents 57 8 Spanish (Active) 21} i Belgian bper Ceuta 1004 I