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026 THE LEADER. [3To.477, May 14. m* Q
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.q-Q:M-]t f;E.B;G.I:Al4. - .
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THE END OF THE PANIC.
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f I'lilB stock market has become quietj ...
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MONEY MARKET & STOCK EXCHANGE.
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Friday Evening. Money is comparatively e...
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BANK OP ENGLAND. An Account, pursuant to...
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aENBRAIi TEADB REPORT.
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Friday Evening. Aix the markets this wee...
Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.
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Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.
Additionally, when viewing full transcripts, extracted text may not be in the same order as the original document.
026 The Leader. [3to.477, May 14. M* Q
026 THE LEADER . [ 3 To . 477 , May 14 . m *
.Q-Q:M-]T F;E.B;G.I:Al4. - .
. q-Q : M- ] t f ; E . B ; G . I : Al 4 . - .
The End Of The Panic.
THE END OF THE PANIC .
F I'Lilb Stock Market Has Become Quietj ...
f I'lilB stock market has become quietj and Consols have settled down to between 91 and 92 . A month ago the price was between 95 and 96 , and the fall which may be regarded as permanent is 4 . The still lower price to which they fell last week and the week before tempted the public to invest in them , and tempted speculators to go for a rise . At present the investments of the public have almost ceased ; speculators have been realising ; and we may now , therefore , consider the panic as entirely at an end , and the price of stocks to stand at the figure warranted by the actual condition of the money market .
This comparatively settled state of things has not been reached without several additional misfortunes , l / ast week we stated that before the accounts were entirely wound up , there would probably be not less than seventy defaulters . Then about fifty had been declared ; and this week , ¦ when the accounts were finally closed on Wednesday , seventeen more members of . the Stock Exchange , to whom a delay in settling their accounts had been accorded , were declared to be no longer members of the establishment—tfieir default
carrypar . Before the close of the year , however , the apprehensions of a war with Russia became rife , and from an active trade , with a foreign depaand , the gold in the Bank had declined to 15 , 400 , 000 ? ., and Consols had sunk to 94 . The rate of discount had risen to 5 per cent ., showing the close connection which existed then as now , with a demand for money to carry on business , and a reduction in the value of securities .
We are not disposed to infer , from the Bank losing bullion , that the capital of the country is decreasing in like proportion . Last week there was a decline in the corn markets , which has continued in the present week . The previous rise of about ten shillings per quarter was sufficient to induce the farmers to supply the market liberally ; and hence it may be . inferred- ^—as , indeed , we know—that the stock of breadstuffs on hand- —the most essential portion of capitals-is not small . Had it been deficient , the increased supply would
have come forward much slower . It is pretty much the same with other commodities . Capital is not scarce , but the demand for it is increasing . Trade is undoubtedly impeded , to some extent , by the war , but not much ; for if the exports of . some manufactures be checked , the export of coals is increasing , and the demand for freight has increased . All the industries that supply our daily wants , or in any way minister to them , must be continued . ; while the demand of the Government
for more seamen and soldiers adds , for the moment , whatever may be the ultimate effects , to the demand for labour and capital . There is probably now more of both than ever before , but the demand for both is also greater , and is at this time comparatively active . The increase in the value of money is far less the consequence of any deficiency of capital , than of the great increase in the demand for it . For the development of the effects of the war abroad on trade and money we must wait—they cannot be
predicteding with it expulsion from the body . The total number of stockbrokers is about 500 , to which , to complete the members of the Stock Exchange , must be added 200 for the jobbers ; so that * assuming the number of defaulters to be exactly seventy , abqut one-tenth part of the body have been removed . There is no example , we believe , of an equal number being at one time cut off ; and the panic , in its disastrous effects , has undoubtedly been one of the most serious on record . We must now state that some features of the
money market in the interval are deserving of notice . In the middle of March , the notes of the Bank in circulation amounted to 21 , 096 , 2532 . ; last week to 23 , 040 , 445 / ., or between March IBtix and May 5 th , they increased very nearly 2 ; 000 , QOOZ . ( 1 , 944 , 182 / . ) . In the same interval the bullion and coin in the Bank had declined from 19 , 922 , 7237 . to 17 , 205 , 480 * ., or 2 , 717 , 243 * . ; and the reserve had declined from 14 , 066 , 477 ? . to 9 , 424 , 795 ? ., or 4 , 641 , 682 * . The continued
augmentation of the circulation in this interval , shows a continual demand for money ; and the decline in the reserve- —though partly due to payments on account of the dividends—with'the decline in the tnilEon , show the decreased power of the Bank to supply it . In the same interval the issue of notes by theBankfell off from 83 , 680 , 950 * . to 31 , 046 , 085 * ., Or "was 2 , 634 , 915 * . less , while the wants of the public Absorbed nearly 2 , 000 , 000 * . more ,. As the rule , the lessening of the means of the Bank implies a lessened power to lend in all other banks and money-lenders ,
and thus we are taught that , independently of all political rumours , the altered condition of the money market , as exhibited by the Bank returns between the middle of March and the first week «& May , was sufficient to accountfor a considerable & U 4 n the price of all securities . ! * £ q find as large an amount of bank-notes in circulation as at present we must go back to 1853 , Ait no period since , in any one quarter , has the average retwhed 23 , 000 , 000 * . Then , however , the rate vf discount did not exceed 3 per cent . Trade WM » iiwtaive and rapidlv extending , the bullion was ftbOufc J $ , QW , < XKtfM and Consols were ft little above
Money Market & Stock Exchange.
MONEY MARKET & STOCK EXCHANGE .
Friday Evening. Money Is Comparatively E...
Friday Evening . Money is comparatively easy to-day , at former rates . All the pressing demands have , for the moment , become less , but it is not likely that the ease will be pei'manent . . It cannot be supposed that the present slackened demand for trade on account of the interruption occasioned by the war can ever continue . Business must go on , and must , in spite of armies , be extended . They and the war are creating an additional demand for
The debts of Austria , and other States of Ger many , are held in small amounts by a o-reat n ™ her e of persons scattered throughout ^ Germany * By the war the value of the bonds and scrX ^ * l ^ akeady been much depreciate ! and thousands of persons are by this iniured . ot fancy themselves injured . They do not , perhaps trouble themselves to inquire very minutely into the rights of the quarrel ; they recognise t he existence of a Bonaparte on the throne of France as the source of danger and the cause of war , and they are filled with animosity against the Emperor and the French . They forget that in the first blush of his success , when lie was thought to have trampled down revolution they hailed him as the saviour of the thrones of Germany , and as the guarantee of the obligations of its Governments , Now affairs are reversed . He is supposed to have depreciated their securities and they are enthusiastic against him . Such is the explanation given here of the excited feelings of the Germans against the Emperor of the French . The funds were tolerably quiet to-day—rather firmer , and at the opening and at the close they were- ^—as they have been for some days—weaker . From Paris the telegrams brought a lull , which affected our markets . Consols were quoted at 9 If to 92 J . ; but at the dose of the market these prices were not sustained . Business was dull . The monthly returns of the Bank of France show ; in the month a loss of about one million sterling of bullion , and a large increase of bills discounted , treasury deposits and private deposits , with an increased advance on securities . Our own Bank accounts for the week do not exhibit any remarkable changes , which will "be found below . ' The arrivals of bullion are considerable , and the drain of bullion from the Bank does not continue .
money , and the usual demand for it must speedily revive . It is not likely , therefore , that the present ease in the money market should bo of long duration . To-day the final instalment of the Chilian loan of 1 , 554 , 000 * . foil due , but there was difficulty experienced in paying it . The exchanges generally , and notably those of Germany and Russia , have become unfavourable to those countries . The Russian exchanges have
fallen from 87 d . per rouble to 82 d ., or about 12 per cent . In * these countries the merchants have bought more than they have sold , and securities being depreciated , the mercantile classes have purchased all the bills they could collect on England . They begin to suffer . Some of the first-fruits pf the war are tasted by the peaceable men of business on the Continent , and their sufferings are said to supply an explanation pf the anger and hatred which are now manifested in Germany towards the Emperor of the French .
Bank Op England. An Account, Pursuant To...
BANK OP ENGLAND . An Account , pursuant to the Act ~ th and 8 th Victoria cap . 32 , for the week ending on Wednesday , the 11 th day of May , 1859 : — ISSUE DEPARTMENT . Notes Issued £ 30 , 857 , 705 r . ovornmentDebt £ 11 , 015 , 100 Other Securities .. 3 , 4 . 10 , 000 Gold Coin & Bullion 10 , 382 , 705 . Silver Bullion .... —r £ 30 , 857 , 70 * £ 30 , 837 , 705 BANKING JJEPAIITMENT . Proprietors Capi- Government Secutnl £ 14 , 553 , 000 lit lea ( lu « l »« ll '' S Rest .. 8 , 209 , 0- - » S Dwart Wolffht Public Deposits ( in Annuity ) ...... ••*" - **'• * £ eluding * Bxcne-. Othur Beourlthw .. WUg $ * quer , Savings' Notos . • ¦ • • • » < < ° < ¦ Banks , Commis- Gold and silver aioners of Na- Ooin < w 8 , e * ts tional Debt , and Dividend Accounts ) 4 , 807 , 380 Other Deposits .... 17 , 130 , 032 Seven Day and other Bills 834 , 213 ^ * 4 o , ooi , is 3 mooMsa M . MARSHALL , Cnlof Cashier . Dated . May 12 . 1850 .
Aenbraii Teadb Report.
aENBRAIi TEADB REPORT .
Friday Evening. Aix The Markets This Wee...
Friday Evening . Aix the markets this week have been dull . The business has been comparatively small , and prices generally have tended downwards . Tea is qwe * and steady . Sugar is cheaper . Wheat is «* exception to the rule . The supply sont forward 01 the former has not continued equal to the wnntt , and to purchase wheat to-day more money wm given . Next market-day , Monday , a rise oi <«• or 3 s . per quarter will probably bo d eclared , ine war both impedes business and engrosses all we public interest . We must wait for a return o peace abroad , to obtain for trade reports mw > f » Attention at home '
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Citation
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Leader (1850-1860), May 14, 1859, page 22, in the Nineteenth-Century Serials Edition (2008; 2018) ncse2.kdl.kcl.ac.uk/periodicals/l/issues/cld_14051859/page/22/
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