MONEY MARKET.
STOCK EXCHANGE, FRIDAY AFTERNOON.
The following notice was yesterday issued by the Bank Directors ; and though it appears to have been considered as probable that a further increase of the rate of discount would take place, it was generally believed that by the terms of the notice of the 30th ultimo, the Bank would be precluded from carrying it into effect until after the 17th of July, the day fixed for the repay- ment of the loans usually made at this period of the year upon negotiable se- curities. It will be seen, however, from the second part of the notice, that the Bank Directors have departed from the principle already laid down, and have raised the rate of interest upon loans, as well that of discount, to 5,5 per cent. A necessary consequence of this proceeding has been the limitation of their ad- vances by way of loan to those made upon Bills of exchange ; as, if more than 5 per cent, interest be taken upon loans upon any other description of security, the lender will become liable to the penalties imposed by the usury-laws. Loud complaints are made by the moneyed interest, of the injustice lithe course now adopted; and it is urged, that ninny persons who were induced to make ,advances upon Exchequer Bills in consequence of the preceding notice, upon the flail' of being able whenever pressed to obtain the money of the Bank at 5 per cent., must be put to very serious inconvenience by the alteration now made, and perhaps forced to submit to sacrifices which would have been avoided bad the Bank abstained from making advances upon Exchequer Bills in the first instance, or acted with good faith in the spirit of their notice of the 30th ultimo. Without entering at large upon this question, for which we have neither space nor inclination, we think that one thing must be clear-namely, that nothing but a Sense of imperative necessity could have impelled the Di- rectors to adopt the present course, and that the stock of bullion now in their coltms is so low as to justify any measure that will put a stop to its further decrease.
" Bank of England. "At a Court of the Directors held 20th Jane 1839, Resolved, that the rate of interest on bills of exchange and notes discounted be 54 per cent. from this day. Vie Governor and (Amp% of the Bank of England do hereby give notice, that all further advances which Inas be made in pursuance f the order or the Court of the 30th ult. "ill be at
the rate uf 51 per cent.; and that such advances will be made upon ■.;( exchange
only."
Considerable effect was produced upon the Money Market. Consols which in the early part of yesterday were 934, have been to-day 9311; ReducedThree- and-a-Half per Cents, have fallen from 994 to 984; Bank Stock from 192 to 1896; and Lnlia Stock from 257 to 255. Exchequer Bills, which were at 28 to 30 prem., fell when the notice was issued to from 14 to 15 prem., and have to-day been done as low as 8 prem. The effect upon the Foreign Funds was much more considerable. Dutch Two-and.a-Half per Cents. have fidlen from 551, to 55; the Five per Cents. from 102E to 102; Danish Three per Cents. from 75 to 74. Belgian and Bra- zilian have been but little affected. In the Non-dividend and merely specu- lative Stocks the fall has been much more extensive. Portuguese 'Five per Cents., which were at 35i, have been as low as 33i; Spanish Active Stock declined from 19i to 1.9i ; while Columbian Bonds, which within the last few a; had risen from 32 to 34, have given way 3 per cent., and have been as low as 3.
The Railway Shares are all lower ; the principal varieties having fallen from 3/. to 51. per share, and the smaller from 10s. to 1/. This description of pro- perty will he more affected by the increased rate of interest than any other ; as it is known that large amounts of some of the heavier description of shares are held on speculation in Lancashire, and the cheek that will now be put to the advance of money on these Securities by the Joint Stock Banks must force them into the market. SATURDAY, TWELVE o'CLoex. At the opening of the market, Consols were firm, and done frequently at 93k for Account ; but in the course of the morning numerous small sales for Money of those Stocks now open have caused a depression, and Consols for Account have been done at 93. Long Annuities have also fallen materially, and have been done as low as 14*. Exchequer, which were at 12 prem., have since been done at 8. In the Forei,gn Market, prices are generally heavy; and the Eu- ropean Continental Stocks have given way about k per cent., all of them having opened per cent. higher than the quotations given below. The South American Securities are without material variation-Colambiau 31i i; Chili 30 32; Peruvian 17 18; Buenos A) res 18 20. No business or material varia- tion has occurred in the Railway Shares.
3 per Cent. Consols
Ditto Mr Account shut 93" Brazilian 5 per Colt Danish 3 per Cents
774 81.
74 5
3 per Cent. Reduced..
911 I !Melt 2+ per Cuts
541 5
New 34 per Cent. Anus shut Portu.oese Regimey b per Cts. 334 44 Ibmk Stock En) Pitt,, 3 per Cents 204 '1 India Stock 255 7 Russian (1322)5 per Cent- . 1124 Ditto Bonds 12 14pm. Spanish (1835) 5 per Cent.... 184 Exchequer 'tills 8 12pin Deferred Stuck 84 Belgian 5 per Cents 1014 2 Passive Ditto 44
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