MONEY MARKET. STOCK E/O:II1YAE, FRIDAY Arms:coop. The alarm to which

we alluded in our last report has completely subsided, and the tone of the market has undergone a decided and entire change : prices have reacted to the point whence the decline commenced, and arc today as high as they have ever been ; closing price of Consols for Account, 9411. This improvement is in some degree attributed to the pacific character of the message of the President of the United States, received on Monday, but mainly to the continuance of purchases of stock of every description for money. The Go- vernment-broker has bought Reduced Three per Cents, in small amounts, al- most daily ; while, in addition to the usual under-current of small investments, several large purchases of Reduced Three-and-a-half per Cents have occurred. This latter stack has consequently risen in a greater degree than the rest, and has been several times quoted at 1011; which is higher than it bas ever yet, reached, even when the Three per Cent Stocks were at their present quotations The premium of Exchequer Bills has improved materially; the present quota- tion of 62a. being from 10s. to 12s. above our last. No very large operations have occurred to cause this rise; but it is attributed to the continuance of in- vestments. The Scrip of the Canadian Loan has fluctuated between 4 and If premium : bargains in it are of daily occurrence, and there seems a probability of its being soon absorbed at prices that will yield a good profit to the con- tractors. There has been a great improvement in the business of the Foreign Market : during the last week more business has occurred titan during any one month of the year; which, taken altogether, may be considered as one of the worst for business since that of the disastrous panic,-1825. Every description of Foreign Stock has been in demand ; and the improvement in the prices has generally been from 1 to 2 per cent. This rise has not been confined to the merely speculative and worthless descriptions of stock, but has extended to those which, like Brazilian and Old Portuguese Bonds, have long paid di- vidends and are considered as legitimate means of permanent investment. Brazilian Bonds have been as high as 72, and Old Portuguese 63; the former showing an advance of 2, and the latter of 1 per cent. The Dutch, Belgian, and -Russian, are also in demand at advanced quotations. Por- tuguese Regency Stock of every description has risen materially; the ad- vance in the Regency Fire per Cents and Newly-converted Stock fully 2 percent, while the Three per Cents have risen about 1 per cent. Spanish Active and Three per Cents have fluctuated very materially : the belief that a commercial treaty is about to he concluded between our own and the Spanish Government, coupled with the payment of the dividend of the Three per Cent Stock, has turned the attention of speculators to these beds. The Three per Cents were at one period nearly 1* per cent above our last prices, while the Five per Cents Active have risen about I per cent. The approach of the settling-day, how- ever, caused a depression of about 1 per cent : with the improvement in the English Funds the price rallied again ; but the improvement was not supported, and the last quotations may be stated at 241 * for the Three per Cents, and 181 for the Five per Cents Active.

Mexican Bonds were yesterday done as high as 32*, and it appeared as if the general desire for speculative purchase had extended to this stock : but as there were ready sellers at the advanced prices, the quotations were not long supported, and the market declined about* per cent : it has, however, slightly rallied, and closes at 311 2. Columbian Bonds evinced scarcely any signs of vitality, and remained nearly stationary till yesterday, when an improvement of about * per cent occurred, the stock having reached 22: to-day the price has advanced still further, and closes at 22*. The Portuguese Government have submitted a fresh proposal to the holders of the Five per Cent Portuguese Bonds of 1836, technically known in the market as Goldsmiers Portuguese Bonds, by which, in addition to the sum pro- vided by the Brazilian Government for the redemption of that loan, they offer,

after cancelling as much of it as is provided for by the Brazilian Government, to allow the balance to remain in circulation, bearing 5 per cent interest, and engage to set apart annually the sum of 17,5001. for the redemption of such remaining portion. The account between the Government and the Bond- holders will, if this proposal be accepted, stand thus—

Original amount of the loan 700,0001. at 90 per cent £630,000 Add 21* arrears of interest at present unpaid 148,750 778,750 Redeemed by the issue of Brazilian Bonds 622,702 Leaving unprovided for 156,048 Which amount is still to continue in circulation upon the terms. This pro- posal, though falling short of the demand made on the behalf of the Bond- holders by Sir 1. L. GOLDSMID, is much more favourable than the original proposition, and has added to the value of the stock ; which was last quoted at 66, and has been done today at 70—marking an improvement of nearly 30 per cent since the beginning of the year.

SAruansV, Tw et.ve o' C mum.

The English Funds are still higher this morning ; Consols for Account being 94* *, and Reduced Three per Cents for Money 941 5. Exchequer Bills have improved ; and are quoted at 61s. to 63s. The business transacted has, however, been quite unimportant.

The non-arrival of the French mail has put a atop to the activity of the Spa- nish market, and scarcely any transaction has occurred in it ; the price is, however, nominally a shade lower. The other Foreign Bonds fully support yesterday's prices, and in some cases are nominally at an advance. We have only one quotation of Portuguese Bonds, that of the New Three per Cents; the Regency Five per Cents and Three per Cents being no longer dealt in. The only bargain noticed as having occurred in the Railway Shares is in those of the Brighton line at 36*.

SATURDAY FOUR O'CLOCK.

The English Funds close firmly at the advanced quotations of the morning. The investments in Reduced Three-and-a-half per Cents have caused that Stock to rise in greater proportion than the others, and it has been done today at 101*. The Scrip of the Canadian loan has been done at 2* premium, or 110*. Exchequer Bills have declined Is., and close at 60a. to 62s. premium. The French mail of Thursday has not yet arrived. Spanish Stock evinced a disposition to improvement iu the course of the afternoon ; but it has since given way, and closes A per cent below yesterday's price. Portuguese Bondi continue to improve ; the last price of the Converted Stock being 351: the Regency Five per Cents and Three per Cents hare not been currently dealt in; yet business has occurred in the former at 41a, and the latter at 25. Colom- bian Bonds close at an advance of 1 per cent ; having been done at 23*, while they were last quoted at 23 1. The following transactions have occurred in Railway Shares : Bristol and Exeter, 481 49* ; Cheltenham and Great Western, 21; Eastern Counties, New, 101; Great Western, 90*; ditto, New, 64* 4; Brighton, 36* I; Black- wall, 5* 1; Birmingham, 189; ditto, New, 34; North Midland, 63*; Rouen and Havre, 2/; South-eastern and Dover, 22* 1; ditto, Scrip, 171 I- 3 per Cent Consuls shut Colombian 6 per Ceuta 221 1

Ditto for Account 941 1 Danish 3 per Cen a 84 5

3 per Ceut Reduced ..... ..... 94/ 5 Dutch 21 per Cents 531 I

31 per Cent Ditto 101/ 1 Mexican 5 per Cents Consd . 311 2 New 3/ per Cents. abut Portuguese Regency 5 per Cts -

Bank Stock 172 1 Di:to New 5 per Cents 1841. 33 1

Exchequer 1331s 2:d. ... .1 re a 60 2 Ditto 3 per Cent s 181 4 Ditto -d 1 rem 60 2 Russian n per Cents . 112 114 India Stock shut Spanish (Active) 5 per Cents. 241 Brazilian 5 per Cents 71 3 Ditto 3 per Cents 1842 184 1 Belgian 5 per Ceuta 1011 21.

Our last number gave the average circulation of the United Kingdom for the four weeks ending the 10th instant, completing the series for the year 1842; this affords an opportunity for comparison of the differences in the entire cir- culation for the whole year. We have also added that of the Bank of England, together with a statement of the amount of bullion ; these monthly returns being much more accurate than those given quarterly, and which were noticed in our impression of the 17th instant.

It will be seen that, as compared with the average, the circulation of the United Kingdom has increased about 51 per cent, wbile the increase between the highest and lowest amount is about 9 per cent. The increase in the cir- culation of the Bank of England between the highest and lowest amount re- turned is nearly 25 per cent, while the statement of the quarterly averages only shows an increase of 20 per cent. There is also a difference between the two returns of nearly 600,000/. in the average amount of bullion; the average of the quarterly statement being 7,512,846, and that of the monthly return 8,101,308. The most remarkable feature of this return is the great fluctuation of the circulation of the Bank of England as compared with that of the United Kingdom: the difference being as 9 and 25 per cent. The oscillations of the Bank-eirculation are a necessary consequence of the mode in which the pay- ment of the public Dividends is made : the sum paid under this bead is nearly ,000,000/. annually; and as the whole passes through the Bank of England, it is evident that at the periods when these payments are made the circulation must be materially increased by the consequent sue of Bank-notes. The Bank Directors are therefore compelled, by contracting their circulation as much as possible, to provide against the effect which the larger issues would other- wise produce upon the circulation rnerally : every increase is preceded by a contraction. Thus it will be seen, that between January and February there is an increase of nearly 1,200,000/.; from which point it declines again in April about 800,0001., to increase in the end of that mouth 1,800,000/.; then it de- clines in June about 850,000/., and increases in July 2,800,000/.; since which time it has been tolerably steady, and the fluctuation of the next three months unimportant. The return of December, however, indicates the application of the principal of contraction to prepare for the large increase by the payment of

the Dividends in January : the decrease between November 12th and Decem- Average of the four weeks Circulation of the United Circulation of the Sank of Amount of Bullion

in the Bank of

preceding Kingdom. England. England.

January 8th 1842 .... 33,603,003 16.293.000 5.6a9,000 February 5111 34,099,977 1;,402.000 5.602,000 March 541 33 591.925 16.894 000 6,281.000 April 2d 33,014 677 16.674,000 7.006,000 April 30th 34849.751 18,404,000 7,082.000 May 28th 34,%66.629 17,891,000

7 383.000

June 25th 32,946.873 17.543,000 7.846.000 July 234 35.303,218 19.908,000 8.883.000 August 20th 35.463.920 20.351.000 9.570.000 September 17th ...... 34.9.9.594 19.9.4.000 9,816,000 October 1501 35,843,929 19.503,000

9 801,000

November 12th ......

20,104.000 9.907,000 December 10th ...... 35.263.093 18,841,000 10,511,000

430,213,269 239.762,600 105 317.000 Average of the year .. 34,631.790 18,443,231 8.101,308 Excess of the highest amount above the average 2278,890 1,907.769 2,410,000 ber 10th was-1,200,000L