MONEY MARKET.

STOCK EXCHANGE, FRIDAY AFTERNOON.

The Bank of England have at length adopted the resolution of reducing the rate of discount. The following notice was issued yesterday-

.. Bank of England, 7th April 1842.

"Resolved, That the rate of interest on bills of exchange and notes discounted be 4 per cent from this day."

Our readers are aware that we have for some time predicted that the Bank would be compelled in self-defence to adopt a measure of this kind. The Di- rectors have certainly delayed as long as possible; for the rate of discount has for weeks been 34 per cent, and it was not to be expected that the Bank could under such circumstances employ its capital at 5 per cent. The anticipation of this measure occasioned, we have little doubt, the extensive and influential purchases of almost all descriptions of Stock, that occurred in the early part of the week, and which have caused a rise in the prices of the English Funds of nearly I per cent. On Monday, when it was known that the overland Indian mail had arrived, and before the publication of the intelligence brought by it, some extensive sales were made for Account ; and the price of Consols fell about 4 per cant; to rally again, however, immediately. On the next and following day, large purchases for Money occurred ; one broker alone having bought Stock to the extent of 300,000/., and Exchequer Bills to the amount of 150,000/. As a natural consequence, prices have advanced from 4 to 1 per cent : and the closing quotations today are within a little of the highest of the week.

The Dividends due on the 5th instant are in the course of payment ; and Money transactions by private transfer have been resumed in all the Stocks, the books of which have been shut since the beginning of March. We subjoin the quotations of them at the period of the shutting and those of today, as affording a means of comparison of the course of the money-market during the period elapsed.

Price at the closing of the Present price, Equal to a quo- Books, with the Dirt- es-Dividend. tation with Di- dead. vtdend of

Rednced Three per Cents 894 891 911 Reduced Three-and-a half per Cents 991 991 1011

Reduced Three-and a,half per Cents 1818 991 99 1001

Bank Stock 1701 1664 171

It will be seen that the general advance has been nearly equal to the amount of the dividend paid upon them. The advance in Exchequer Bills has been during the same period 128.—viz. from 25s., the premium on 1st March, to 37s. premium, the average price of today.

The business of the Foreign Market has been chiefly confined to Mexican, Columbian, and Spanish Stock. Some disappointment was experienced by those persons interested in Mexican finance, at the small amount of dollars brought by the Crane ; and the price of the Stock fell about 1 per cent in con- sequence. As it is now, however, known that the agents have a large portion of the October Dividend in hand, the Stock has again become a favourite with the speculators, and has risen about 2 per cent from its lowest point of depres- sion. Columbian have shared in the popularity of Mexican, and are about 4 per cent in advance of our last prices. An improvement in the price of the local Stock at Madrid, and in that of the Active Stock at Paris, has given increased currency to Spanish Stock in our market, and the price has advanced per cent. The New Three per Cents still continue in demand, at a price within a fraction of the quotation of the Active Stock. The holders of Portuguese Bonds appear to entertain a very unfounded prejudice upon the subject of the conversion of the Old Bonds into the New Five per Cent Stock ; and adver- tisements from time to time appear warning the holders from availing them- selves of the terms of the conversion. One of these notices appeared in the Times on Wednesday, containing the erroneous statement that every holder of Five per Cent Stock would be a loser of 10/. 10s., and every holder of Three per Cent Stock of 71. lls. by converting. This error was promptly rectified in the Money-article of the paper on the following day ; where, by an able state- ment, it was proved that so far from a loss accruing on the conversion of the old Portuguese Bonds into the New Five per Cent Stock, there bad been since january 1841 a gain of 4/. 3s. 44. upon the conversion of every 1,000/. Five per Cent, and a like advantage of 21. 8s. 8d. upon the conversion of every 1,000/. Three per Cent Stock ; in addition to which, the holder who has con- verted his Stock receives a dividend upon 1,166/. 13s. 4d. New Five per Cents at the rate of 24 per cent, instead of upon 1,000L Regency Five per Cents at the same rate, and upon 697/. 10s. New Five per Cents at the rate of 24 per cent per annum instead of upon 1,000/. Three per Cent Stock at the rate of 14 per cent per annum ; the excess of future annual dividend receivable upon the converted over that paid upon the old Stock being for every 1,000/. Five per Cents, 4/. 3s. 4d., and for every 1,000/. Three per Cents 2/1 8s. 8d. We have only to add in quoting this statement from the Times, that it is strictly accurate in every respect. Little business has occurred in the Northern Euro- pean Stocks, and the business in them has not been important. The threat- ened increase of Dutch, Austrian, and Russian Bonds, has not produced any business or great fluctuation in the price of these securities in our market; and prices are generally firmer, in consequence of the improvement in the English Funds.

The Railway Shares have also improved; but there has not been any thing in the business transacted to call for remark. The price of South-western was not affected by the recent accident.

SATURDAY. TWELVE O'CLOCK.

The English Funds are not quite so firm this morning, the market having given way without the occurrence of any business of importance. Consols for Money have been done at 903, which is per cent below the highest price of yesterday. The others have fallen in proportion. The Foreign Funds are not quite an much in demand, in consequence of the heaviness of the English Stocks, but no business has occurred worthy of re- mark.

The following transactions have occurred in Railway Shares: Eastern Coun- ties, 94; • Great Western, Fifths, 104; Brighton 37; Birmingham, Quarter- Shares, 37 ; South-western, 604; York and North Midland, New, 33; South- eastern and Dover, (501. paid,) 284 4. A call of 2/. per Share upon these latter becomes due today, and the above price is equal to 214 to 214 dia. per Share.

SATURDAY, FOUR O'CLOCK.

The English Funds close more firmly ; Consols for Money having been done at 903, and the closing price both for Money and Account being 903 3. Ex- chequer Bills are the same. The Foreign Funds are also generally at the morning's quotations; nothing of importance has occurred during the afternoon. The following transactions have occurred in Shares : Railways—Great West- ern (New), 65; Brighton, 37 374; South-western, 603; North Midland (New), 35. London Joint Stock Bank, 124; Provincial Bank of Ireland, 404.

3 per Cent. Consols

901I Columbian 6 per Cents

27 h

Ditto for Account

901 i

Danish 3 per Cents

80 81 3 per Cent Reduced

891 1 Dutch 21 per Cents 520 1 31 per Cent Ditto

9731 9

Mexican 5 per Cents Consd .

401 914 New 31 per Cents

1001 Portuguese Regency5perCts. 36 4 Bank Stock

1613t

Ditto New 5 per Cents 1841. 291 30 Exchequer Bills

36 8 pin. Ditto 3 per Cents 21 1 India Stock

241 3 Russian 5 per Cents 112 113 Brazilian 5 per Cents .. ex div. 67 9 Spanish (Active) 231 i Belgian 5 per Cents

103 4