ENGLISH COMMERCIAL.

West Coast Times, Issue 705, 27 December 1867, Page 2

ENGLISH COMMERCIAL.

(from the home news.) The discount, market has, during tho month, assumed something like a settled appearance, and it is rather firmer in tone, so that there is now no expectation of a reduction below the existing minimum of 2 per cent. Not that the demand for money is greater, but because it is not greater, for it is held by those who are at the head of the market, that no reduction below 2 per cent, would enlarge the amount of business. Meanwhile the supplies a<-e large, and they have been increased by the dispersion of the October dividends, and also of the Bank dividends. It is onlj the very best bills that are taken at If to Ik per cent. The public who have money are still preferring to place it with the banks at 1 per cent, to using it themselves. This fact shows that the distrust which set in 18 months ago is still active. The stock of gold in tho Bank of England has rather diminished, but it is still large, almost beyond precedent, On the 16th October the aggregate wa3 L 23,261,362, being L 1.237,085 less than on the 19th September. Tho reservo during the interval has fallen from L 15,792,022 to L 13,267,617, being a reduction of L 2,524,405. These changes are mainly owing to tho dispersion of the dividends. The private securities have fallen from L 17.216.262 to L 16,951,047. The reduction is L 265,215, au amount quite sufficient to show that the competition of the open market for the general run of bills is sufficient, to take away some business from the Bank. The public hold L 24,993,747 of noteß, the increase being chiefly owing to the dispersion of the dividends. During the month there have been several panics on the Stock Exchange. One was owing to the apprehensions of serious -political complications arising out of the Garibaldian attempt upon Rome, avjd the preparations of the French Emperor to vindicate by force the Convention of September. Another was owing to an advance in corn, which it was said would rise to 100s. All these anticipations proved unfounded, and they must have been followed by very considerable mischief, if they had extended beyond the Stock Exchange and the Corn Exchange. Fortunately they did not. Consols, however, fell in consequence of (hem to 934, but from this point there was a rally, and on October 24 they closed at 91£ to f. On .that day there were numerous orders to buy on country bankers' i account, and the market was very firm. Bank Stock, 248 to 250 ; Reduced and New three per cents., 92f to .V ; Exchequer-bills, 25s to 30s pm. The advance in Australian securities, mentioned iii our last, ha 5*5 * not been in all cases maintained. L'.ke other securities they have felt the effects of the distrust, which has led holders of stocks to realise and retain the immediate command of their funds, but the market is now firm. The Crown agents have invited the holders of New Zealand 8 per cent. Treasury Bills falling due on the 31st December next to exchange them for 6 per cent Debentures of the General Government of that colony having twenty-four years to run. The proposed rate of exchange is equal to a price of 103 J for the 6 per cents., and the operation will be effected by the delivery of a Treasury bill, with the final coupon attached, for a debenture of equal amount, bearing interest from the 15lh December, 1867. It is understood that the Treasury Bills held in this country, and falling duo at the end of the present year amount to about L 400.000 ; but as the proposed transaction will be merely that of substituting one security for another representing the same amount,, no additional capital will bo called for, and the only result will be that of lessening the liability of the colony to the extent of the difference between the two rates of interest allowed, or between eight and niue thousand a year.. The dividend of the Royal Mail Steam Packet Company for the half-year ended the 30th of Juno last, is to be L 3 a share (free of income-tax), including profit from insurance account. An illustration of the way in which two steam companies may by co-operation mutually benefit each otlur is afforded in the report issued by the directors of the Royal Mail Steam Company, which states that "the line of steam communication established by the Panama, New Zealand, and Australian Royal Mail Company, forming, in connection with tliia company's line, the Panama route to New Zealand and Australia, having now been in operation over twelve months, it affords the directors of this company much satisfaction to draw attention to the highly successful manuer in which tho service, embracing the long ocean voyage from Panama to New Zealand, and vice versa, has been, from the commencement, performed by the vessels of that company." This tribute to the efficiency of the young Australian company is well deserved, and it is satisfactory to believe that the friendly cooperation of the two companies will continuo to redound to the advantage of both,