The state of affairs in the City is a little
unusual. So great is the supply of money, that the Bank-rate is only 2 per cent., the Joint-Stock Banks are giving only 1 per cent, for deposits, aid money can be had on good securities to any amount at 1 per cent. Capitalists are steadily buying Consols, Indian Funds, Colonial Bonds, and the like, and competing for new issues cf French Exchequer Bills. Nevertheless, business is not extensive, new companies are not started, old companies complain of "re- strictions," and the Stock Exchange is as sensitive as a barometer in a thunderstorm. On Thursday there was a sort of panic. The thousands of persons who, hold "Turks," because Lord Palmerston believed in Turkish regeneration, were alarmed by the telegrams from Bosnia—they do not know where Bosnia is, but that makes no difference—and sent up such orders to sell that for some hours " Turks " found no purchasers. All other stocks suffered "in sympathy "—that is, holders feared if Turks went to pieces there would be fewer buyers for anything else—and owners must in one day have lost millions. The truth seems to be that confidence has recently received so tremendous a shock, that money accumulates without being used till the reservoir is over-full. If the process lasts much longer, some genius will hit on some probably profitable use of capital—perhaps tramways, with cars driven by compressed air—and we shall see the commencement of a mania.
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