Markets.

Lyttelton Times, Volume X, Issue 641, 29 December 1858, Page 6

Markets.

By the October, mail from London we learn that money was easy, first-class paper short dates being negotiable at 2} to 2J per cent. At a meeting of directors of the Bank of England on the 14th, it was expected that their rate of discount would have been reduced from 3 per cent to 2J; but no change was made. The English funds were advancing, and looked as if they would go to par, if present tranquility was not interrupted. Consols closed October 15th at 98f.

We understand (says the ' Daily News') that the Bank of England have taken the balance of the New Zealand four per cent loan, guaranteed by the British Government, which was submitted to public competition, with only partial success, through the Union Bank of Australia in July last. It will be remembered that at and subsequent to the public adjudication, wben -tbei. minimum price was fixed as high as 107 per cent, a total oi auoux-as-riro^ro^,—^^- _i»..t«wp,j to have been absorbed. The aggregate of the loan was £500,000, but the sum offered to competition was only £300,000, the Union Bank of Australia taking £200,000. The sum now taken by the Bank of England may therefore be computed at about £100,000. We .use the word " computed," because the Union Bank declined to furnish precise information, although, public biddings having been in the first instance invited, the matter may be considered to possess some public interest.

We have already had to congratulate our New Zealand readers on the establishment of steam postal service between New Zealand and Australia in connection with the overland English mail, and so far have the arrangements been completed that some ofthe vessels have already departed. We now see that a prospectus is issued of the Intercolonial Mail Steam Packet Company (limited) with a proposed capital of £ 125,000, in £10 shares. This company is formed to carry out a contract entered into between Messrs. Pearson, Coleman, and Co., with the Admiralty for an exclusive monthly mail service between Sydney and the principal ports of New Zealand for a term of ten years. The subsidy granted by Government on the employment of four vessels is £24,000 a-year for the first four years of the contract, and £22,000 a-year for the remaining six years ; but it is Intimated that a considerable -extension of the service, upon advantageous conditions, is under consideration. Messrs. Pearson, Coleman, and Co. subscribe for £40,000 of the capital upon precisely tbe same terms as those offered to the public.— Australian and New Zealand Gazette, Oct. 2.

The condition of the Anglo-Australian trade had not changed in any material feature during the month. Shipments of many goods were still as much in excess ofthe wants of the Australian markets as ever. Spirits and wines were still coming forward very freely. There was a decrease in oats, and an increase in all provisions except butter. The Customs returns for September were similar to those of previous months, and the prospects for October were very much the same. There were ho signs of any general reduction in shipments. The state ofthe manufacturing districts was improving, but was not yet so satisfactory as could be wished. The Australian wool sales were torecommence on the 4th November. The ' Home News' of the I.6th October gives the following report of the present condition of this branch of trade:—

"Since our last report considerable inquiry has existed in our market for all descriptions, and the dealers in London have met the demand freely at a profit of l_d. on the average prices of the last sales, nearly clearing themselves out of stock.' A large portion has been quitted for Erance.

"It is a remarkable proof of tho consumption of wool, that so soon after the last heavy sales, comprising 77,000 bales, many dealers and manufacturers should bo so bare of stock as to bo ready-—indeed eager—to buy certain qualities at an advance of l_d. and even 2d. oh healthy wellbred woolsj and it is generally expected that

our ensuing sales, to commence on the 4th November, thi« advance will be fully maintained.

41 Perhaps at no former period was the market more free from, speculation, and the present demand for wool being bona fide for consumption it is not improbable that prices may, ere our February sales commence, be pushed to the highest rates of last year; but to reckon on a continuance of such prices will surely lead toheavy loss, for as soon as the dear wool is in cloth, the manufacturers will find it difficult to quit, and the merchants will do all in their power to hold off till the new wools are offered, and then the reaction will be considerable.

"It is hoped by these remarks, that the extravagant views generally entertained on the other side of a firm market here will be considerably modified, and that merchants will not be induced to purchase at rates without, as was the case last year, even a fair margin for freight and charges, but that their operations should be based on the year's average price, and not on an exceptional sale.

" The above views receive strong confirmation by the result of last year's operations. The extreme rates (considering the general depression throughout the country, in consequence of the failures and dear money) existing in February, led to serious losses by the manufacturers, and the result was a very heavy drop in prices at the May sales—more from timidity from recent losses than over supply—for, at the July sales, we again had a considerable advance with an improving market to state ; and gratifying ' as it may be to merchants and growers^ it is certain that if we reach the high rates of last year, the reaction willcome, and although the declension in price may not be so considerable as between February and May of this year, still it will be palpably felt by those who purchase in the colonies at such extreme rates." Messrs. Willans and Overbury report :'-— " There has been considerable activity In the wool trade since the close of the colonial wool sales, and large purchases have been made at an; advance of Id. to l_d. per lb. upon the rates then current. The demand is chiefly for middle class Port Phillip aud Van Diemen's Land wools, at prices ranging from Is. 9d. to 2s. per lb. " There appears to be every probability that the next public sales, which are expected to come on either the last week in .October or the first week in November, will exhibit an advance in price upon all classes of wool, of Id. to 2d. per lb., though, as the quantity of Capes will be ■very large, it is "somewhat doubtful if this description will participate in the advance, to its •full extent. "In the English market there has also been a large amount of business done, chiefly in long combing sorts. " Arrivals to this date for next sales :—12,668 bales Sydney; 4,464 bales Port Phillip ; 262 "Van Diemen's Land ; 1,322 bales Adelaide; 4,447 bales New Zealand; 11,343 bales Capes. " 78 Basinghall-street." Messrs. Hughes and Ronald report of the Liverpool wool sales :— 44 At the public wool sales which commenced to-day, 1,110 bales East India were offered; white wools .realised Id. per lb. advance on our last June sales; good current qualities of yellow Tirought £d. per lb. advance; but in other kinds there to, no-r^te^r^ ■»"-**-' -— - -■:-•-■ •-, - f " Notwithstanding the very full attendance of the trade, there was not much competition for the miscellaneous description offered, consisting of 527 bales Buenos Ayres, 742 Spanish, 741 Portugal, 325 Iceland, and 899 sundries, which, were chiefly withdrawn."