Markets.

Lyttelton Times, Volume IX, Issue 561, 20 March 1858, Page 4

Markets.

ENGLISH MONEY MARKET

AND CITT! INTELLIGENCE. London, Thursday Evening, December 15.

We regret that we cannot yet report much improvement in the condition of the Money Market, though within the last few days good paper has been in demand, and the bill-discounters generally show more confidence. The Bank rate —10 per cent.—is still the rule for first-class bills, and anything under is the exception.

Business has been more settled, but the general feeling is still that of depression and want of confidence. At one time there were some symptoms of improvement, but these favourable expectations were checked by the failure of a number of firms engaged in the trade with Norway and Sweden. The extension of the crisis to Hamburg, and, consequent thereon, the almost total suspension of business" in that port, has much aggravated the depression here. In Hamburg the existence of a currency wholly metallic seems to have complicated rather than otherwise their disasters. A measure has been adopted which is, in fact, equivalent to national suspension with protection for one month. We should now look for a gradual improvement in our position, but the extensive ramifications of our commerce render it impossible to say whether the collapse in our trade may not occasion a commercial crisis in tome other "quarter, which will again react upon us. We have already witnessed this result in the case of Hamburg, and we believe that it i* the uncertainty as to when this process of actisa-and reaction is to end that principally prevents returning confidence.

The last return from the Bank of England shows that a sure and steady improvement is taking place, in the condition of the Bank. Theoretically, the issue is still £2,000,000 in excess of the amount allowed by the Act of 1844; but practically, as there is a reserve in the banking department of £4,401,719, the actual issue of notes to the public is within the limit prescribed by £2,401,719. The serious feature is the excessive and unprecedented amount of the advances to the public, under the head of " other securities," whichis still above£3o,ooo,ooo.

Consols have risen rapidly and continuously. The constant purchases by the public have tended to keep the market very firm. In one week, we believe, the public invested to the amount of £6,000,000. Their distrust of other securities is the cause of this. They take their money from the joint-stock banks and other establishments and buy in Consols.

Closing prices for money:—Consols are quoted 91f to £ ex div. for the Bth January; Three per Cent. Reduced, 91 to f; New Three per Cents., 91^; Bank Stock, 218£; Exchequer Bills, 4s dis. to par.; Exchequer Bonds, 1858, 98$; do., 1859, 97f to 98}.

london* -wool repoet.—December, 1857. The last sale of colonial wool for the year closed on the 4th Dec, and the number of bales catalogued consisted of 9884 bales Australian; 9392 bales Port Philip; 3328 bales Van Diemen's Land; 1885 bales Adelaide; 3511 bales NewZealand; 16,853 bales Cape; total, 44,583 bales; of which, as nearly as may be, about 39,000 bales were sold; the large withdrawals of re-offered wools and second-hand parcels swelling the total offered to 3300 bales more than the actual stock of first-hand wools, and in addition about 2000 bales, principally Cape, have not been catalogued. The satisfactory close of the July-August sales had imparted a rery firm tone to the market, and several parcels from second-hands were sold at an advance of Id. to 2d. on the average of those sales; this feeling continued for about [ five weeks, all parties looking with confidence to those rates being maintained in the November sales; this feeling, however, soon gave way on receipt of such unfavourable accounts from America, and business both in London and the manufacturing districts became exceedingly limited; the certainty of so serious a panic there producing its effect at home had its effect, and the continued rise in the value of money, coupled with extensive failures, brought business in every branch to a complete stand-still. The announcement, however, had been made that the sales would commence on the 12th of Nov., and wide indeed were the quotations of a reduction which most persons anticipated to a more iordesa extent in proportion to-their views. Contrary to the expectation of nearly all, the sales opened with a very large attendance of both home and foreign buyers; and although great irregularity was observed in the bids as to real value, still they were animated, and foreign competition helped much to so satisfactory a result—the decline quoted being 2d. to 3d. per 11). The stringency of the money market and difficulty felt in discounting paper with the best names at any price, produced a gloom which

spread more and more every day, and at each night's sale, notwithstanding the large withdrawals amounting in some cases to nearly half the sale, and generally to one-third, prices gradually gave way, until the decline, as compared with the closing prices of August, might be quoted—good and fine flocks, 2d. to 3d. per f13.; average to fair, 3d. to 4d. per Jl),; ordinary and moaty, 4d. to 5d.; scoured, handwashed, &c. 3Jd to 4£d. per lb.; and grease, 3d. to 3Jd. This declension in price not leading to the slightest improvement in demand, the sales closed very dull and without animation, at the extreme reduction noted. Notwithstanding a result apparently so unsatisfactory, the wool trade have much to congratulate themselves upon, for a market was always to be found at a price (higher be it remembered than 1852 with discount then only at 4 per cent.), while in many cases other produce could not be sold except at the most ruinous decline. It is generally expected that the February sales will comprise about 40,000 bales, and not the slightest improvement is anticipated. Indeed, if the fact be verified of an early clip, nearly all buyers will merely supply immediate wants (a prejudice existing among dealers against wools from winter sales), and a decline of Id. to 2d. may have to be submitted to. RANGE OF PRICES OF NEW ZEALAND WOOL. December, 1857. Superior flocks in best condition. Is. 9d. to Is. Il^d.; average to good in fair condition, Is. 7d. to Is. 9d.; oi'dinary and ill-conditioned flocks, Is. 2d. to Is. 6d.; scoured clothing, Is. 7d. to 25. ; lambs', Is. lOd. to 2s. Id.; fair and handwashed skins, Is. 3d. to Is. 6d.; inferior, Is. to Is. 2d.; lambs' good, Is. 7d. to Is. 1 Id.; inferior to average, Is. 3d. to Is. 6d.; broken locks, &c, lOd. to Is. 2d.; in grease, 9£d. to Is. l£d.— Home News, .