MONEY MARKET.

Sinew EXCHANGE, FRIDAY AFTERNOON.

The intelligence brought by the Indian mail produced a favourable effect upon the general tone of the Money Market, as evinced by an increased demand for the Three per Cent Stock. These securities were today from / to 1 per cent above our last prices; Consols for Money having been done at 94-I, at which price there were for a short time buyers. The price has, however, given way iu the course of the afternoon and closes at 94 to it both for Money and Account. Reports that are prevalent of the intended reduction of the Three_ and-a-half per Cents have tended, however, to prevent any rise in those seen- rites, and during the week several large exchanges have been effected, by which the holders of Three-and-a-half per Cents have become holders of Three per Cent Stock; large amounts of Reduced and New Three-and-a-half per Cents having been sold, and the proceeds invested in Three per Cent Console and Three per Cent Reduced. It is quite evidentce that our capitalists anticipate a speedy reduction of the Three-and-a-half per Cent Stocks. It will be seen by the comparison given below of the prices of the various descriptions of Stock on the 11th October, and the quotations of today, that while the Three per Cent Stocks have risen 1% per cent, those liable to reduction have only risen per cent. Price ou 11th Present Improvement October. Quotation. per Celd.

Consols Three per Cent .. 920 9444 .. lit

Reduced Three per Cents... 924 9344 144 Do. Three-and-a-half per

Cents 100 10048 to New Three-and a half ... 100; 101 10104 4 to

During the same period, Bank Stock has improved from 6 to 8 per cent, end India Stock from 8 to 9% per cent. The rise of these two latter descriptions of Stock may also be considered as evidence of the prevailing belief; as, though the improvement may be in part attributed to the abundance of money, the great extent to which it has been carried can only be accounted for on the sup- position that these two descriptions of Stock will shortly be the only ones that yield an interest of more than 3 per cent. Several plans have been proposed as the most eligible on which the intended reduction may be concluded; but they have only been remarkable for their intricacy, and in some cases for their absurdity. Of the latter class is one for exchanging the present Three-and-a- half per Cent Stocks for 100 Three per Cent Stock, and 108. per annum Long Annuities; the only result of which would be to postpone the etfect of the reduc- tion till the year 1860, the period at which the Long Annuities expire, when by their extinction the present Three-and-a-half per Cents would became Three per Cent Stock. This operation would be a great boon to the stcckholder, as it would guarantee him from reduction for seventeen years, and would not work the slightest benefit to the public. The most certain mode of reduction would be the simplest ; and as the question cannot, we should think, be raised till the preseht price of Three per Cent Stock has experienced a considerable advance, we should imagine that the best plan would be to offer the stockholder such amount of Consols or Reduced Three per Cents as at the market-price of the day would afford a bonus of about lj per cent upon the conversion : and we have little doubt such an offer would be generally accepted. Thus, suppose a rise in Three per Cent Stock to 96 : we should propose to offer 1044. 15s. Three per Cent Consols for every 1001. Three-and-a-half per Cents, which amount of Consols would at 96 be worth 1001. 11s. 3d.; and as the interest upon the 104/. 15s. would be 31. 2s. 10d., there would be a saving of 7s. 2d. per cent upon the reduction of every 1001. Three-and-a-half per Cent Stock. The total amount of Three-and-a-half per Cent Stock now existing is as follows- Three-and-a-half per Cents 1818 £10,861,103 10 7

Three and.a. half per Cents Reduced 66,273,230 15 5 New Three-and a half per Cents ... 146,229,682 4 8 Total £223,364,016 10 8

The annual saving upon the conversion of which, on the terms proposed, would be 810,039/. It will be a matter of surprise that we have taken the price of Consols as high as 96, when the quotation of today is only 94%; but it would scarcely be worth while attempting the redaction unless Consols were to im- prove to that extent.

The remittance noticed in our last report caused an_ improvement in Mexi- can Stock ; which has been as high as 331. Some extensive sales, however, having occurred at that price, the Stock has fallen, and is today 1 per cent lower. The conclusion of the recent treaty between Holland and Belgium

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has given an impulse to the Dutch Funds in the home-market; and as a natural consequence, those Securities have improved % per cent with us. The Portuguese Bonds are at a trifling advance upon our last quotations, and the conversion of the old Stock is going on rapidly. Spanish Stock has once or twice shown symptoms of improvement ; the gleam was, however, but momen- tary, and the price has fallen again, being rather lower than last week. There is a general belief in the improvement of this Stock ; but the stagnation of the price at Madrid, and generally on the Continent, will not allow of any rise in our market.

Nothing of importance has occurred in the Railway Shares.

SATURDAY MORNING, TWELVE O'CLOCK.

TheEnglish Funds are nearly at yesterday's quotations, the Market being rather firmer. So little business has been doing, that up to this moment not s single bargain has been quoted in the official list as having occurred in Consols fur Account.

There is no business or change in the prices of the Foreign The transactions in Railway Shares have been as follows: Great Westero, 84%; ditto, New, 8%; Brighton, 35 %; South-western, 60. SATURDAY, Foca o'Ctoca. Thire has been a slight demand for money ; and in consequence Exchequer gills have declined Is. Bank Stock has 'been done at 1726 and 173; and India Stock at 262, which latter is an advance of 2 per cent upon yesterday's quotation. With these exceptions, the English Funds are at the morning prices. The Foreign Market is without variation or business of importance; prices being the same. The following transactions have occurred in Shares: London end Westminster Bank, 22* *: Railways-Bristol and Exeter, 441 1; Eastern Counties, 86 ; ditto, Scrip, 10*; Edinburgh and Glasgow, 49; Brighton 34* 5; :Birmingham Quarter Shares, 47* ; ditto, New, 306 ; South-western, 60 59* *; Northern and Eastern, Scrip, 61 4 1 ; North Midland, 62*; Paris and Rouen, 221; South -eastern and Dover, 22%; Thames Hoop, Registered, 7. It will be seen from these quotations that some of the Shares have exhibited a tendency to decline.

94 1 Columbian 6 1,e. Cents 51 1 Danish 3 per Lents ...... 13

Dutch 2} per Cents 52g

Mexican 5 per Cents Consd 321 3 Portuguese Regency 5 perCts :81 9 Ditto New 5 per Cents 1841 321 3 Ditto 3 per Cents.... 23 Russian a per Cents 1121 1134 Spanish (Active) 5 per Cents 171 I

Ditto 3 per Cents 1842 211 1 The quarterly return of the average circulation and liabilities of the Bank of England for the thirteen weeks ending the 5th November, exhibits, as com- pared with the last, a decrease in the circulation of 101,00k, in the deposits of 296,0001., and in the securities of 639,0001., while there is an increase in the amount of bullion of 156,0001. As compared with the return of the 19th No- vember of last year, there is an increase of 2,631,000/. in the circulation, of 1,687,000/. in the deposits, of 5,298,0001. in the bullion, while the securities have decreased 1,193,000/. The amount of bullion has been more than doubled during the twelve months; the present amount being 9,789,0001., against a like sum of 4,491,000/. in November last. 3 per Cent. Consols

fhtto for Account 94 1 3 per Cent Reduced 931 4 34 per Cent Ditto 1004 New 31 per Cents 1014 Bank Stock 172 3 Exchequer Bills, 24d. .. prem. 58 60 Ditto, 2d do. 58 60 ludia Stock 260 2 Brazilian 5 per Cents 63 4 Belgian 5 per Cents 102 3