MONEY MARKET AND CITY INTELLIGENCE.

Colonist, Issue 60, 18 May 1858, Page 2

MONEY MARKET AND CITY INTELLIGENCE.

(From the Ilome Noios, February 1(5.) Since our issue of the 16th of January there has been a further material relaxation in the Money Market. The Bank of England rate was at that date's per cent.; it ik- rioVv 3" per cent., having been successively reduced to 4 per cent., 3^ per cent., and on Thursday last to 3 per cent. Nearly five years have passed since 'the rate was 3 per cent., a gradual advance, with one or two exceptional intervals, having taken place from the Ist of June, 1853, when it last stood at that point..' Previously, however, for nearly five years-—that is to say, from the date of the complete subsidence of the panic of 1847—it had steadily kept between 2 and 3' per cent. That period comprised 239 weeks, during which the minimum was 3 per cent, for 129 weeks, 2J per cent, for 74 weeks, and 2 per cent, for 36 weeks • while the average stock of bullion was £16836,000, the lowest amount having been £13,253^557, and the highest .£22,232,138. At present the total held is, probably about ifil6,3oojooo, and js, consequently, fully equal to the amount heretofore found consistent with a prolonged period of ease. The increase still promises to continue, since, although ship-

ments on the continent have again been resumed, therdis no immediate sign that the sums required will be equal to those which will arrive. As a large proportion of the ■ American.- and Australian payiftents to the continent and elsewhere are made through this country, there must always, under ordinary circumstances, be a certain overflow. r ",, Good bills are quoted uout of doors" rather hisVw the Bank rate, but a considerable number of bills now go to the Bank.