ENGLISH COMMERCIAL,

West Coast Times, Issue 89, 30 December 1865, Page 2

ENGLISH COMMERCIAL,

London, October 20. Since our last the money market has undergone oue of those unexpected and uovioua changes from moderato discounts to oxcessivo stringency which, unfortunately for British commorce, liavo been its characteristics sinco tlio passing of the present Dank Charter Act, At the dato of our last, money was steady at 4 per conti, and it is.now unsettled at 7 por cent, Tho successivo steps lately taken liavo been — On September 20, a riso from 4 to 4.J per cent. ; on Monday, October %• a movement to 5 ; on tho sth, a riso to 6 ; and on Saturday, October 7th, 7 per cent, was touched. There was thus a total movement of from 4 to 7 per cent, in 'tho short space of 14 days. Thrco changes in' tho Bank rate in one and the sumo week aro quito unprecedented in tho annals of that establishment, and on no former occasion, wo beliove, havo tho Hank altered their rate on a Saturday. Tho Bank's action must bo regarded as a dcoisivo proof of tho determination of tho executivo to attract back to thoir till by all means in, their power a portion of tho sums lately drawn from it, and wo aro glad to say that now there is some prospect that such a turn will bo given to tho foreign exchanges as will afford relief in this sense. Our readers will expect to hear tlm& this has been caused by wild speculation and reckless gambling in trading circles, accompanied by a corresponding collapso of credit. Unfortunately for tho supporters of tho Bank Act they can only point to a healthy revival of business and a small exceptional demand fyr Ireland as the causes. Meanwhile thero remains to us the regretful reflection that these ceaseless olmngos in tho Bank rato of discount, and — what is still moro powerful for harm — the distrust, and fear of oven greater stringency which they naturally beget, Can (scarcely fail to act injuriously upon tho trade and enterprise of the country, tho indications of recovery in which liavo latterly been watched with such universal satisfaction. Tho prevailing uncertainty as to tho point to which tho riso in tho value of'monoy will bo carried under tho stringont oporation of our currency laws will' inovitably cause sober nouspeoulativo inei chants to withhold their ordora, and oven to countermand thoso which they havo already given out. Fortunaloly, tho trado of tho country is in so sound a stato that wo can afl'ord to waton, without tho slightest alarm, tho efforts of tho Bank of England to retrieve its position, tho moro especially as there is evory probability that this rotrioval will ho accomplished in tho courso of a fow weoks. Meanwhilo, howover, tho losses that will bo inourred form a serious consideration, Last year tho Bank rato of discount underwent no less than 15 alterations ; this year wo havo already had 14 distinct changes. An nctivo foreign drain of bullion, which is usually tho can so of a riso in tho Bank rato, is now absent, and tbo notes and coin, tho absorption of which has provoked no mnch wondor and ovon constornation amongst tho advocates of tho Bank Act of 18ii, aro wanted mainly for tho legitimate trado of tho country, and yet, so absolulo is the limitation of tho currency, and so ligidly is its voluuio restricted to that of 25 years ago, that a moro revival of trado is now found sullioiont to icducn tho Bank to 'great straits, and to force itH oxcquUyo to attack tho conunuroo of Uio country with a Borioa of uovo'iltioy htthorto unprecedented, U wmun to w tlmC fnltli In Hia Mwwwy tf Ui(>

cunoncy system of 1844 for tho requirements of the trado of 1805 is likely to receivo a gieat blow ftoin tho experiences of this autumn — experiences which, it is satisfactory to know from the indications of tho past session of Parliament, aro not likely to bo lost upon our open-minded and enterprising Chancellor of the Exchecquer.