MONEY MARKET.

STOCK EXCEANOZ. FRIDAY AFTERNOON.

As is usually the case upon the payment of the Dividends, money has be- come much more plentiful; and though the Funds have received a check by the occurrence of some extensive sales of Stock by the Bank Broker, and Consols for Account were thence depressed to 891, the price has again improved, and has since risen to 89/. The settlement of the January Account took place to- day ; and notwithstanding the supply of more than 100,0001. thrown upon the market by the sale above referred to, Stock was so scarce that the jobbers ex- perienced great difficulty in providing it for delivery. The opening price of this morning was 891; but the demand for Stock forced the market up to 891, being an improvement of 1 per cent. The continuation, or premium paid for holding Stock till the February Account, which has been as high as 1, has decreased, and at the commencement of to-day was 1, decreasing, however, to 3-16. The rate of interest upon the capital employed even at the highest continuation is only 21 per cent., and at 3.16 is less than 2 per cent. At the settle- ment of the last account in November, such was the demand for money, and the gloomy aspect of the market, that many capitalists preferred borrowing money upon their Stock, to risking the chance of a sudden call upon them when the books of the Consols were shut. Appearances have now, however, greatly changed; the supposed settlement of the Eastern and China questions has given confidence to the capitalists; and most of the bankers have to-day paid off the loans they then raised upon the deposit of their Stock, thus clear- In the market, and adding greatly to the difficulty of the speculators for the fall. The current rate of interest upon commercial discounts and other nego- tiable securities is 5 per cent. ; and some idea may be formed of the demand for Consols, when the speculators who have sold Stock for time are compelled to be content with so small a rate of interest as 2 to 21 per rent. Bank Stock Las improved more than 4 per cent. since our last report ; and is to-day quoted at 168, being a rise of more than 12 per cent upon the lowest recent quotation. India Stock has also risen, and was yesterday at 2504, being a rise of 121 par cent. since the beginning of December. Exchequer Bills have declined, and the premium upon these securities is to-day 8.1. to las. A general meeting of the shareholders of the Union Bank of Australia was held on Monday last ; when it appeared from the accounts produced, that the

balance of undivided profit on 30th June last was £30,051 13 10 That the profits for the half year ending 31st Dec. last were 32,341 14 0

Less Dividend paid at Midsummer 118,000 0 0

One-tenth of last half-year's profit added to reserve fund 3,234 3 4 £62,393 7 10 21,234 3 4 Leaving a balance as net profit £41,159 4 6

A dividend of 25s. per Share for the six months just elapsed was declared ; which, amounting to 25,0001., would still leave 16,159/. 9s. 6d. balance of undivided profit, in addition to a sum of 8,128/. 16s. carried to the reserve fund. These results are something new in banking. We believe that the banks con- nected with Australia are the only establishments of that nature that have

ever paid dividends varying from 8 to 10 per cent. within two or three years of

their formation : but the profits upon the employment of capital in those young colonies are so great that it is fair to suppose that the banks connected with them will be able at least to continue the large dividends they have hitherto paid. The capital now employed in this branch of tanking is compa- ratively trifling ; the united capital of the Bank of Australia and the Union Bank of Australia being less than 1,200,000/. ; as will be seen from the fol- lowing statement—

Bank of Australasia £600,000 Union Bank of Australia 20,000 Shares paid up £500,000 10,000 new Shares upon which Si. is paid 50,000 — 550,000

Another bank, viz. the Royal Bank of Australia, has just commenced ; and -we believe that as soon as the new settlement of Australind is established, a party of capitalists are prepared to commence the banking business in con- nexion with that settlement.

The improvement in the English Funds has given increased currency to most of the varieties of European Stock upon which dividends are paid. A demand for Russian Bonds at Amsterdam and Hamburg has reduced pur- chases here, and these Securities may be quoted about 11 per cent, higher. Dutch and Danish Stock are also in demand at a slight advance. The South American Securities were rather firmer, with but little business, but have given

-smy slightly this afternoon.

The reported peace between France and Buenos Ayres has caused some in- quiry after the Bonds of the Republic, which are now quoted nominally at 18 20; the price before the arrival of the pacific intelligence was 174 and 171: but the improvement is only nominal, as we cannot learn that any transactions have occurred at the improved prices.

The transactions in Portuguese Bondshave been trifling, and the fluctuations

unimportant. Spanish Active has been depressed to 24, since rallied to 241, and was this morning at 241: several sales have, however, been effected, and the price consequently depressed ; one broker sold 25,000/. at 24, but the market recovered a little before the close, and was quoted at 24 to 4.

SATURDAY, TWELVE &CUM'S.

There has not occurred any business of importance this morning ; the atten- tion of the brokers and jobbers being principally taken up with the arrange- ment of the differences arising upon yesterday's settlement of the Account: Prices are nominally the same as yesterday, but the market is not quite so firm. The Foreign Funds are at yesterday's quotations.

SATURDAY, FOUR O'CLOCK.

Prices generally have advanced in the course of the afternoon. Consols for Money have been done at 90, and for the Account at 901, and close at 891 90 for Money and 904 1 for Account. The premium upon Exchequer Bills has improved ls., and was at the close 88. to 10s. In the Foreign Market, Spanish Active Stock has improved, in consequence of a purchase of 40,000/. by a leading broker ; and after being at 241 buyers, was 241 1 at the close. Portu- guese Five per Cents are about 1 per cent. higher, as are the Three per Cents. We have no quotation of Bank or India Stfick to day.

3 per Cent:Consols

891

Belgian 5 per Cents. 974 at Ditto for Account 90 Columbian 6 per Cents 234 3 per Cent. Reduced 904 4 Danish 3 per Cents

774 84 at per Cent. Ditto

98 4 Dutch 24 per Cents 501 New fitper Cents 98 4 Mexican 5 per Cents. Could. 284 Bank Stock Exchequer Bills 167 8 8 10 pm. Portuguese Regency 6per Ors Ditto 3 per Cents

191

26

31/ 204

India Stock for Account 250 t Russian a per Cents 1124 1134 Brazilian 5 per Cents 704 14 Spanish (Active)

244