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''''.-'- ■ n' THE CHOLERA.…



OUR iii CITY" ARTICLE, -+- THERE seems reason to hope that we are ap- proaching the period when we may reasonably ex- pect that the Bank directors will reduce the rate of discount. If this were once accomplished and peace assured on the Continent little would be necessary to develop a new current of business. These are, in fact, alone required to give vitality to transactions, because all parties have been so crushed by the panic which, commencing in May, has lasted till almost the last moment, that they have been largely sacrificed. Even should the reduction in the rate of discount take place, and should Prussia accede to the armistice, we should yet require some time to elapse to enable a general recovery. Once let us get in the right direction in this respect, and the weather prove as favour- able as at present for the harvest, and we must experience a revival which will be healthy and sustained. Before the autumn we expect to wit- ness this encouraging change, with general ac- tivity in business. The Money Market cannot be said to be in a much better position. The Bank of England and the Bank of France returns have proved rather more encouraging, but still the inquiry for dis- count is well supported. The question now is, when will a reduction come ? Some seem inclined to say that it will be next week; some the week after; it is, nevertheless, very clear that the directors, until the time they see themselves quite safe, will not make any alteration. Since the payment of the dividends a larger amount has been brought out for employment, and the conse- quence is an easier state of the market. At the same time it must be confessed that the exercise of caution will be necessary, because with the strain following the 10 per cent. it is not improbable we shall have further disturbance in the finances. This is where the danger is now to be apprehended. We have passed through the panic in London; we have, in, fact expe- rienced a partial revival of confidence; but it must be reasonably imagined that after a pressure of four or five months-for that is what it in reality is-the influence must be adverse in trading and speculating localities, such as Liverpool, Birming- ham, and other centres, and it will require a period to elapse before there is a restoration to steadiness or a more active desire to extend transactions. The payments of the dividends have naturally exercised an effect, and the withdrawals of gold for continental purposes have likewise affected the metallic resources of the Bank; the first redaction will have a decided influence, and if the European banks should be enabled to follow the example we may anticipate much lower average rates before the end of the year. The stoppage of the Birmingham Banking Company has occasioned a little excitement. It was an unlimited establishment, with debts and liabilities amounting to £ 1,500,000; and though the creditors will of course be paid in full, it is feared that the shareholders will suffer heavily. Two or three causes are alleged to have produced the failure. First, heavy advances to contractors; and secondly, the irregular engagements of the business of the bank. Up to a few years ago the establishment was considered the first in the locality; latterly it has gone into finance transac- tions, which have left it a large liability; and the dividend, it is alleged, will be under 10s. 7d. in the pound. The telegram from Birmingham and the neighbourhood of the branches state that a row has taken place. English Securities have not varied in any great degree, during the past week, but the prices have been on the average fairly supported. A frac- tional decline may be closely traced, though still the tendency is not unsatisfactory. The public have been buyers since the payment of the divi- dends, but on the other hand the speculators con- tinue to sell stock. Not much activity is likely to be apparent, through the distrust occasioned by rumoured bank failures, and it is believed money may again come into demand. The question of confidence will of course be again raised, but, perhaps, after a day or two, we may settle down, leaving things much as they were. Consols for money and the account have become firmer at the last moment, and New Three per Cents, and Reduced have followed in the same direction. Bank Stock and India Stock have been supported; the appearance of Indian securities were a little more favourable. Generally, Indian securities exhibit strength, but the paucity of business is so great that the fluctuations are of the most unim- portant character. The supply of money at the Stock Exchange has been moderately good the last few days; on Friday and Saturday the inquiry was rather active, rates varying from six to seven per cent. The number of dealings on the 14th inst. were much below the Saturday average, but the funds were a little firmer, Consols closing at 872 1 to £ for money, and 87i to 88 for the account. The return from the Bank of England, com- pleted to the 11th July, shows some important changes, and are generally of an unfavourable character. The bullion has been diminished by £ 883,475, and there is also a falling off in the reserve of notes of £ 241,115; the other securities, however, have been lessened by £ 1,710,020; while the public and private deposits each show some large fluctuations cansequent upon the distribu- tion of the half-yearly dividends. The transactions in the Foreign and Colonial Produce Markets daring the week have been to a moderate extent. Sugars, however, have been in better demand, and prices are well supported to 6d. per cwt. advance. Tea has been dull, while in coffee only superior qualities have maintained former values. Jlice has been dull, and a shade cheaper, while the public sales of indigo were pro- gressing with rather more animation, although the rates are under those obtained at the previous auctions in May last. Tallow has been exceedingly dull, and in some instances at slightly reduced quotations. .11 The progress of business in the manufacturing districts during the week has not been very satis- factory, the present high rates of discount pre- venting any speculative dealings. The woollen trade of Leeds, Bradford, and Huddersfield has been very quiet, while at Manchester both cloths and yarns are at a slight decline, although spinners are generally well employed under con- tract. The lace and hosiery trades at Leicester 1 and Nottingham had improved, consequent upon the fineness of the weather, while in the hardware districts of Birmingham, Sheffield, and Wolver- hampton there has been little change of import- ance in most departments. Quotations for English railways have been generally depressed up to Friday night. Great Northern A Stock after this receded 2, South Eastern It, Metropolitan f, North-Western f,-and Chatham and Dover -J Great Northern have been firm, and have risen 1; and Great Eastern, Great Western, Lancashire and Yorkshire, and Manches- ter, Sheffield, and Lincoln have advanced;f. Satur- day was almost a blank as regards dealing in this as in every department of the Stock Exchange. London and North-Western improved t; South- Eastern, Great Eastern, and Midland the Great Northern and Great Northern A declined teach.

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