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C OMMEEGIAL.
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No 476 , Wax 7 , 1359 . ] THE LEADER v V 599 ' * ' ^^^^ t ^^^^^^^^^^^ m ^ f ^^ ' ^^^^ v ^ f ^ Oi ^^ K ^ tf ^ O ^ K ^ B ^^ t ^^^^ B ^^^ SX ^ BtOI ^ KtCS ^^^^ S ^ B ^ tKf ^ StSSSSSSSm ^ XS ^ BK ^^^^^^^^^^^^ ^^^ ' ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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EFFECTS OF THE PANIC . The panic which we noticed last week is now nearlyover , though it did not cease without two or three more failures , and has resulted in a general , and probably permanent , fall in securities . Consols , on Wednesday * were lower than on the day when it was announced that France and Russia had entered into an alliance offensive and defensive . The ^ milar nature of the two Governments , and their common desire of aggrandisement , gave probability to the tale , and it was as readily believed as the report of an insurrection in Italy . It was in conformity to expectation . But now that it has
been repeatedly , positively , and officially contradicted in many ways , the fall in Consols and all other securities continues . We are inclined , therefore , to infer that the previous price of Consols and other securities was too high—that it must have fallen whether there had been war or not , and whether or not Russia had made such an alliance with France . It would be an error , therefore , if this view be coi-rect , to ascribe all the losses on the Stock Exchange to the war . The subject , is of great importance to future speculation , and therefore the grounds of the inference are worth consideration .
In consequence of the failui-es of 1857 , enterprise of all kind has been very much diminished or suspended throughout 1858 , and is yet very slack . Capital has been comparatively little in demand , and it has flowed readUy into safe securities yielding a low rate of interest . This condition of things has been common to the whole commercial woiid , and securities have borne a higher price than would otherwise have been warranted . Now our trade is extending very rapidly ; every month shows a great increase of our exports . The same is the case in other countries . The New York Tribune of April 18 th , after referring to the almost total suspension of enterprise in 1858 ,
financial projects was proved to be a fallacy Independently of war , it xnajr be ^ presumed now that trade is reviving , that it will extend very rapidly , and that new enterprises will beget a great demand for capital . With a high price and great demand for money , Consols at par , or nearly at par , are incompatible , and we therefore are inclined to think that much of the fall which has taken place was inevitable , and the price of securities is not again likely to rise to the level it had reached before the Avar , and the rumours of wartreaties had beaten it down .
It is proper to put on record , as we have now done , and did last week , the increase of our trade with the changeable value of securities , arising from a . change in the value of money—independent of the war demands , whatever they may ultimately turn out to be , because such events as the commencement of a war establish epochs in history , and around them are always grouped many subordinate events which are only slightly and incidentally connected with them . An increased demand for capital ,., and a corresponding rise in the value of money have taken place , in part irrespective of the war , but is very likely to be referred wholly to it . The demand for shipping
has steadily increased through the year , but may probably be attributed to the war demand for coals which has affected freights at the North of England . We have learned from various facts in our time that the consequences of such great events as the beginning of war or peace , are very rarely , properly , and justly appreciated at the time they occur . There was , fox * some years after the peace of 1815 , very considerable disorder in the produce markets ; gluts and dearths were alternately complained of , and were generally . attributed to the convinced that
peace . Experience has us they were entirely the consequence of the false and fatal system of protection or l'estrictions on trade , and have been coz-rected though not yet wholly obviated by a mere approximation to freedom . Some writers now threaten the world with considerable disasters from a surplus of gold ; and now wehave more than one Government forcing their subjects to dispense with using it . And now , consequently , whatever disorder may arise in the money world—whether due or not to the warwill be attributed to it . We remind dur readers of such circumstances , to guard them against asex'ibing all the changes which may immediately or soon hereafter occur in production in prices in trade , and in various other social relations to the war now unhappily begun .
says : — " Manufactories , furnaces , and forges are generally at work again . Nearly all who can do anything have work , if they see fit to do it . Wages are generally higher than at this time last year . Trade is brisk , and is generally supposed to be healthy . The imports at this port for last week exceeded , in Custom-house valuation , six millions of dollars—aix amount rarely , if ever , surpassed—and probably cost at least eight millions . Up to April 9 th , the merchandise entered at this port since January 1 st was invoiced at sixty-five millions of dollars . " With this increasing demand of capita l for trade , previous to the war , loans were negotiated pr announced for the Indian Government , for Russia ,
and for Turkey . All these wei'e far more advantageous investments than Consols at 97 or 95 , and in face of this increased demand for money at higher rates than they yielded , the price of tlxeni would naturally arid necessarily fall . At this time last year Consols were 97 , } . At that period , whatever might have been the momentary pressure on the Stock Exchange , enterprise was very generally at a stand still , and such a price would only be warantable with a permanent rate of interest at 3 per cent . At the same period in 18 , 57 ,. when enterprise waa very active but was accompanied by suspicion , Consols were « t' 9 ' 2 ; j . Then the rate of discount wns GJ per cent ., and there wad considerable dread of commercial failure . If 1858 .. wore exceptional as the
year immediately after tlxo crisis , 1857 was also exceptional from excessive speculation . The price of commodities of all kinds was unusually and abnormally high ; and quite as exceptional as woro the prices of 1858 from being unusually and abnormally low . In April , 185 G , the prico of Consols was also . 92 , and just then the wax demands on capital had ccaaed . But independently of all political vicissitudes , einco 1851 , trade has everywhere boon rapidly extending , new entorprisoa till the ond of 1857 were continually coming forward , and there was an increasing demand for capital . The rato of disoount , and the interest of money were , from 1852 , continually high , and the presumed permanent or , standard rate of 3 per 0 8 ftft > . on which Mr , Gladutono built some of his
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Friday Evening . Wjs have noticed elsewhere the further rise in the minimum bank rate of discount which was settled yesterday and to-day . We find that this rate , 4 J per cent , is the lowest xn the market . As the rule , private lenders require something above this rate , which is , we take it , a sure forerunner of a further rise in the'bank rate . The demands of the different Governments for money , coming on the heels , of increasod demands for trade , is whipping upjthc market very smartly . At Berlin the rate of discount lins already ljeon raised to 5 per cent . At Vienna , where money mattters seem already to have fallen into confusion , \ o per cent , is demanded , There the suspension of the large banking house , Amstein and
business or not , as its suspension is supposed to be a direct consequence of the funds of the National Bank , on which it was accustomed to rely , being diverted from trade to Government , we may class this disaster as one of the consequences of the war . Those who have most reflected on the vast extent to which credit now enters into all mercantile transactions , will be , we think , the most filled with apprehensions at the probable consequences of a war which has commenced by the Government of Austria striking a fatal'blow at . credit . Months ago we did what lay in our power to rouse the monied and mercantile classes to express a strong opinion against the Governments engaging in this war , and they will be sure to suffer from it being prosecuted .
On the Stock Exchange to-day there has been comparative quiet , but this is more the consequence , we believe , of a resolution adopted to give all parties concerned in Consols time till Monday , evening to enter into arrangements , than of a restoration of confidence . Composition and settlement in the best possible manner are recommended and adopted ; and to-day no business was done , because at present it is not known who can be trusted . Before the business is wound up it is supposed that there will be not less than seventy defaulters ; but the whole extent of the disaster will not be known till . Tuesday . For the account no business is done , and future prices are only nominal .- Money stock is very scarce . The price the
to which Consols have fallen lias tempted public to buy , and there is xib longer any to be sold . Its price , therefore , is nominal , too ; but this present scarcity will beget an improvement . A period more trying than the last ten days has never been known on the Stock Exchange , and the great , and probably permanent , fall in securities of all kinds has ' weakened ., not to say destroyed , many fortunes . To lose life in battle , in a condition of . great excitement , seems a light evil , compared to living for years with , blighted hopes and curtailed means ; and we must , accordingly , look elsewhere than the battle-field for the most heartrending and most lasting consequences of war . The bank accounts fully justify the rise xn tne rate of discount .
Eskeles , has excited groat consternation . This house , like many of the banking firms on the Continent , and like the Scotch Bank , had , we believe , a great number of running accounts ; we have heard them vaguely estimated at 5 , 000 , on which it waa accustomed to make advances , and it is supposed that the suspension will oauso prodigious inconvenieneo to the manufacturing and mercantile classes of Vienna and the neighbourhood . The rise there in the rate of discount tends to confirm the suspicion , and it is supposed , that should the suspension continue , it will Involve a great number of other failures . We heard , therefore , with satisfaction , towards the close of business , that news had reached London that the house will bo supported , and if possible will continue its business . Whether it resume
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Otjkkixg oje the ConNWALxv . Bailway , —The Saltash-bridge , or Royal Albert-bridge , of the Cornwall Railway was formally opened on Monday by the , PrlnCe Consort . The work , which has been under the superintendence of Mr . Brunei , Una bcea sovoral years in construction . Great preparatioria wqrd made by the South Devon Jtailwuy Company and the Cornwall Railway Directors , as also by the military and civil departments , to welcome his Royal Highness , who loft Windsor Costlo about 0 aim ., by special train , and arrived at the bridge soon after noon . The Princo simply opened the bridge by crossing and recroaaing , time not permitting him to proceed any distance into Cornwall , and the same cause also prevented the roeontlpn of any addresses . The regular traffic of the lino will commence this day , and the inauguration of the rai way will bo celebrated at Truro by a grand banquet . The remainder of the Una bolow Saltash was ormally opened by the directors and a largo special party immediately after the departure of the Prince CoJisort . ¦ '
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MONET MARKET & STOCK EXCHANGE .
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BANK OF ENGLAND . „ . „ . _ , An Account , pursuant to the Act 7 th and 8 th Victoria cap . 32 , for the week ending ou Wednesday , the 4 th . day of May , 1859 . — ISSUE DEPARTMENT . Notes issued £ 31 , 0 * 0 , 035 Government Debt £ 11 , 015 , 100 Other Securities ' .. 3 , 459 , 900 ( iold Coin &Bullion 10 , 671 , 035 . Silver Bullion .... £ 31 , 040 , 030 £ 31 , 046 , 035 BANKINC . DEFAKTMENT . Proprietors' Capi- , Government Socutal T . . £ 14 , 553 , 000 riticH ( iucluOinff Rest 3 , 103 , 48 S Dead Weijjht Public Deposits ( in Annuity ) A J ] l' ? Ji'S ; 2 eluding Kxche- Other SecuntUs .. 1 JM 3 MJ * quer , Savings' Notes 8 , 700 , 350 Banks , Commts- . Gold and Silver sjoners of Na- Coin 034 , 445 tlonnl Debt , and Dividend Accounts ) 5 , 408 , 008 Other Deposits .... 15 , 1 ) 03 , 971 Seven Day nud other Bills 784 , 700 £ 30 , 033 , 227 £ 39 , 033 , 227 . M . MAUSUALL , Chief Cashier . Dulod May 0 , 1850 .
C Ommeegial.
C OMMEEGIAL .
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Citation
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Leader (1850-1860), May 7, 1859, page 599, in the Nineteenth-Century Serials Edition (2008; 2018) ncse2.kdl.kcl.ac.uk/periodicals/l/issues/vm2-ncseproduct2293/page/23/
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