MONEY MARKET.

STOCK EXCHANGE, FRIDAY AFTERNOON.

The Funds gave way slightly in the early part of the week, but rallied again, in consequence of a general disposition for investment among the smaller capi- talists. The prices were yesterday about a per cent, higher than at the close of business on Saturday last ; Consols for Money having been done at 89, and for Account at 89*. New Three-and-a-half per Cents, were at 99a ; Bank Stock, at 165*; India Stock, at 247. The news from China; by the Indian mail to- day, has had some depressing effect on the market ; which has been increased by some extensive sales made by Jewish speculators : so that the prices of today were at one time j per cent, below those of yesterday; Consols for Money having been done at 88a, and for Account at 88*: the price for Money has since been 88, and for Account 89; but the closing quotation is 884 a for Money, and 88i for Account. Bank and India Stock are both at the prices of yesterday ; the former being 165a, and the latter 247. There can be little doubt that the recent improvement has been partly owing to the difficulty of paying up the Scrip of the new funding, from an impossibility of procuring the requisite amount of Exchequer Bills. It is now more than ten days since any transactions in these securities have occurred; and consequently, parties who during that time have been desirous to avail themselves of the demand for Stock, by paying up their Scrip and selling the Stock thus created, have been unable to do so. For though bank-notes would be received in lieu of Exchequer Bills at the rate of 100/. 12s. per cent., it must be remembered that most of the parties largely engaged in the funding are already provided with the requisite amount of bills, which are rendered useless by being now submitted to exa- mination: consequently they would be unwilling to risk the loss attendant upon now paying up the Scrip in bank-notes, and being compelled at a future period to sell the bills at a premium below 12s., which it will be seen they would be compelled to pay upon the substitution of bank-notes for Exchequer Bills in the payment of the instalments. Some attempts have been made to purchase Exchequer Bills for Monday next at 10s. premium ; but the dealers in Them declined to sell, as it is feared that a sufficient quantity will not be stamped at the Exchequer in time for delivery on that day. It is generally ex- pected that, in consequence of this difficulty, the Government will postpone the next payment upon the Scrip, which will become due on the 8th instant, for it few days ; but no notice to that effect has appeared. The business in the Foreign Market has been rather more extensive than usual, and the prices of most of the current descriptions of stock have advanced. Brazilian Bonds have been at 57a, and are nominally 56 to 58. Chilian have advanced nearly 3 per cent., and are 66 to 68. It is impossible, however, to buy any Stock at all at these quotations ; the accounts recently received from the Republic, of the accumulated surplus of revenue, being such as to give a reasonable ground for hope that ere long the arrear of dividends will be partly or entirely hquidated. Columbian has not improved, because it is believed there is a large amount of Stock yet to come on the market, in consequence of the break-up of the fraud upon the Exchequer. Dutch Two-and-a-half per Cents. had advanced to 51i ; but a sale of 200,000 guilders this morning, at 511, has depressed the price, which closes at 51a a. The Belgian Funds have not been affected by the discovery of the recent conspiracy ; the price being 100a ex-divi- dend, equal to a quotation with dividend of 103. Spanish Active was one time 1 per cent, above our last prices; having been yesterday morning at 21i for the current Account and 21# for the 30th instant : but it has receded today to 21a, and closes at 21i The Railway Shares are generally firmer. Brighton improved on Tuesday about 2/. per Share ; when, on Wednesday, a fresh interruption took place, by reason of a slip to a considerable extent on the Croydon section of the line, and the Shares have fallen again about 1/. The Croydon Shares have not declined much, being about IIL 10s.

The Exchequer Bill fraud has been the great subject of interest during the week ; and it will be seen that in addition to Mr. .E. B. SMITH, another indi- vidual, Mr. E. RAPALLO, has been apprehended, and is now in custody. The latter is the person indicated by us in our last week's report, as the speculator well-known in the neighbourhood of the Stock Exchange for his large opera- tions in the Funds, and from his connexion with the expedition of Lours NA- POLEON. The ascertained amount of forged bills in circulation is now stated at 271,000L The whole amount issued was 351,000/4 whereof 80,000/. have been returned to the Government by two of the brokers employed by Mr. RAPALLO, with whom they had been deposited by that gentleman. It is un- certain whether the whole extent of the fraud is yet known; as it has only been discovered in the course of today, that Mrs. SALAMI, the widow of the in- dividual who appears to have been first connected with Mr. SMITH in the issue, has borrowed 41,000/. of two bankers upon Exchequer Bills, which have been pronounced forgeries; and the amount is thus carried up to 351,000/. It appears from the evidence of Mr. PERCEVAL that the bills were pro- nounced forgeries. Notwithstanding which, sonic of the present holders have certainly an equitable if not a legal claim upon the Government for the pay- ment of those held by them. Upon the first rumour of the fraud, the very bills now pronounced forgeries, to the extent of 47,000/. in one instance and 18,000/. in another, were sent up for examination at the Exchequer, and de- clared genuine. The lenders of the money upon them consequently declined to avail themselves of a proposed exchange of the bills for Spanish and Colum- bian Bonds; which if they had taken, they would have avoided the loss they are now subjected to, by a reliance upon the declaration of the officers of the Exchequer that the bills were genuine.

It has also been stated, that from the high rate of interest paid by the bor- rowers, the lenders ..nf money upon the spurious bills ought to have had their suspicions awakened. It however appears, that none of the loans at present subsisting have been made at a higher rate than 5 per cent. ; and though the borrowers have frequently paid 8 or even 10 per cent., the surplus interest has been divided among several inferior agents as a gratuity for their exertions. We may add, though 5 per cent, would in ordinary cases be considered a high rate of interest to be paid for loans upon Exchequer Bills, yet recent circumstances have caused occasionally a great demand for money upon such Securities. The subscribers to the new funding are entitled to make one-half of the future pay- ments in Exchequer Bills; and this necessity might easily, account for loans of money being required upon them ; and supposing the bills in question to be provided for such a purpose, there was nothing extraordinary in the holders borrowing money, a few weeks ago, at 5 per cent, upon them, when at the Same Period 6, 8, and even 10 per cent, was currently given for loans for a short period upon the security of English Stock. It will be easily seen that the first object of any one who had subscribed extensively to the funding would he to secure the required amount of Exchequer Bills; and hence there was nothing in the circumstance of these loans to rouse the suspicious of the most cau- tious. Indeed, the member of the Stock Exchange who has made advances to the greatest extent upon them, (viz. 47,0000 enjoys deservedly the reputa- tion of being one of the most acute and cautious persons in it.

It will give some notion of the extent to which the speculations in Spanish

Stock have been carried, when we state that on the 15th October the brokers employed by Mr. Itepara.o paid in cash for 298,000/. Spanish Stock, the money for which purpose, about 60,000L, was all raised by the way of loan upon these forged Exchequer Bills. The operations were not confined to Spanish Stock alone, but have extended to the British Iron, Brighton Railway, and other Shares, in almost all of which the losses have been immense.

It is stated this afternoon, that the Government have determined to insti- tute an inquiry into the mode in which the present holders of the forged bills became possessed of them ; and that it will be recommended to Parliament to provide for the payment of the money advanced by all those who can prove their transactions to have been bond fide. The Times in noticing this affair, has stated that some hills of 500/. each had been forged or fraudulently issued ; adding, that these smaller bills were not issued by Mr. E. B. SMITH, whose department only related to bills of 1,000/. each ; and that the gentleman to whom the issue of 500/. bills is confided was absent in Scotland, and had been sent for express to explain the circum- stance. There are only three clerks in the "Office for the Issue of the Ex- chequer Bills,"—the Senior Clerk, Mr. E. B. SMITH, Assistant Mr. H. W. CHISHOLM, and Junior Mr. J. K. BLAKE. Mr. Cum:roma is the gentleman alluded to in the report of the Times; and he has reason to complain that it has in so heedless a manner given currency to this statement to his prejudice, which is utterly untrue. For the forgeries are entirely confined to bills of 1,000/. each ; and so far from Mr. Cuisnor.m awaiting a summons from the office, he left Scotland immediately upon hearing of the forgery, arrived in London on Saturday last, and had been for some days attending to his duties at the office when the Times published the above report.

SATURDAY, TWILLYX O'CLOCK.

There is scarcely any business doing this morning, and prices are generally the same as yesterday. A notice is expected from the Government, postponing the payment of the instalment upon the Scrip which becomes due on Monday next, for a few days. We have yet no recorded transactions in Exchequer Bills : there is a demand for them, and there are buyers at 8s. and 10s. pre- mium, but no sellers. The Foreign Funds are the same as yesterday. The Railway Shares are rather firmer; London and Birmingham, 66 to GS prom.;

Croydon, i; Brighton, 37 to per Share.

SATURDAY, FOUR O'CLOCK.

The market has improved A per cent, in the course of the afternoon ; and . the closing price of Consols for Money is 88i 89, and for Account 89 to a. There has not been any transaction in Exchequer Bills; and the expected notice from the Treasury for the postponement of the instalment upon the Scrip has not come down. The holders will therefore be compelled to make the payment on Monday, in the best manner they can. There is little alteration in the Foreign Market ; prices generally closing as in the morning, but if any- thing rather firmer. Thu business in the Railway Shares has been almost entirely confined to those of the Brighton line, which continue to improve, and have been done at 38/. per share, or 12 discount.

3 per Cent. Consols 884 4

Columbian 6 per Cents . ... 19 * ` Ditto for Account 881 9

Danish 3 per Ceuta 78 9 3 per Cent. Reduced 874 i

Dutch 24 per Cents 51-1 4 31 per Cent. Ditto 274

Mexican 5 per Cents. Cum.'. 25 4.

New 34 per Cents 981 4

Portuguese Regeucy 5 per Cts. 294 30 Bank Stock 164 5

Ditto New 5 per Cents. 1841.. 25 6 Evcheoner Bills ..... ....... —

Ditto 3 per Cents 18 + India Stock 247

Russian Spec Cents ..... ... 112 13 Brazilian 5 per Cents 56 8

Spanish (Active) 214 -4 Belgian 5 per Ceuts 100

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