17 JANUARY 1842, Page 8

MONEY MARKET.

STOCK EXCHANDE, 1.'1.91AT AFTERNOON.

The appearance-of a further advance in the prices of the Public Securities, to which we alluded in our last report, has not been realized; the market has on the contrary experienced a marked depression. This extraordinary chaoee has been occasioned by the operations of the Bank broker, who during the week has cold from 500,0001. to 600,000/. Three per Cent Consols, for money. The sales commenced when the quotation was 89/ ; and though but a few were sold at that price, a very large quantity were sold at 89, and it was at first be- lieved that no sales would be made at less. But the operations have been con- tinued during the decline which they occasioned, and a large amount was sold yesterday at 881. The market, which has, notwithstanding, always rallied as soon as the immediate pressure for the day was over, has been on the whole remarkably firm under these very extensive sales ; and as they have not been continued today, it has reacted to the whole extent to which it bad fallen ; having again reached 891, the price at which the fall began and at which the sales first commenced. lt is supposed that the stock thus sold is that portion of the last Funding that was not taken by the public but subscribed for by the Bank. The original amount was 1,500,0001., but it is believed to have been reduced by previous sales to somewhere about 1,000,000/. ; and, supposing that the whole of the remaining amount is now to be brought to market, there is yet from 300,000/. to 400,0002. stock to be sold. The Bank have made a very ex- cellent bargain for themselves by the operation now closed; for the original cost of the Stock in September was 891; from which is to be deducted the discount allowed upon the payments of the Scrip, amounting to 148. 7d, thus reducing the cost to about 89. Supposing the whole to be sold at the present rates, or about 84 there will appear to be a loss of 1 per cent upon the transaction; but as the holders of the Stock have received a dividend of 11 per cent upon it in addition to the price for which it is now sold, there is in reality a profit of 11 per cent without reckoning the interest of the money employed. Money has been in very great demand upon the days on which these large sales occurred ; and in one in- stance the rate of interest rose from 3 to 5 per cent, upon the same day. This, however, has been but temporary ; the rate of interest for long periods, as evinced by the Continuation on Consols for the February Account, being much lower, viz. from 31 to 4 per cent. The premium of Exchequer Bills has been seriously affected by the demand for money, and has fallen to 14s., being from 45. to 6s. below the quotation of last week. This decline is the more extra- ordinary as occurring at this time of year, when the investment of dividend and other trust-monies generally takes place. In the course of yesterday, Consols for Money were as low as 881; Reduced Three per Cents, 89; Re- duced Three-and-a-half per Cents, 98/ ; and New Three-and-a-half per Cents, 991; while Consols for Account (this day) were never done below 891, though there were for a abort time sellers at that price. The prices just quoted mark 9 decline of 1 per cent from the highest quotations recently reached; but as since yesterday we have to notice an improvement of 4i and in some instances # per cent, the present prices are only about # per cent below the extreme quotations, and about 1 per cent below those of last week. The last advicea from the 'United States, to the 22d December, are not more satisfactory than those previously received. The money-market was in a state of panic, and some of the State Stocks had declined excessively ; Indiana had fallen 10 per cent in the course of the week preceding that date. There could consequently be no doubt that the dividends upon it and the several other State Stocks we mentioned some time since—viz. Illinois, Michigan, Mis- sissippi, and we may now add Arkansas—will not be paid when due, at the beginning of this month. It would appear that some of the States find that their connexion with the local banks has been very unprofitable, and now give indications of turning round upon the holders of their Bonds and re- fusing payment of their just debts, because the parties for whose benefit they were really, though not nominally contracted, have abused the confidence re- posed in them. Most of the debts of the New States are in some way or other connected with the local banks ; either the money raised by the State has gone to form the bank in the first instance, or the bank has taken upon itself some portion of the debt, in consideration of receiving a charter. These banks are now all insolvent ; and when called upon to pay their dividends, some of the States, on the ground that their agents the banks have acted fraudulently or negligently, talk of repudiating the whole debt. This has only been the case as yet in two instances; but the Americans seem to regard national insol- vency with so much indifference, that the principle, if not positively asserted, will, we fear, be practically acted upon in others.

In the Foreign Market, prices have not been very materially affected ; nei- ther has the business transacted been important. An unimportant purchase of Russian Bonds, on Wednesday, caused a demand for them, and there were at one time buyers at 1151; but as no one had any to sell, we believe no trans- action occurred : the price has since fallen to 1144, at which rate a bargain mat yesterday effected. Dutch, Belgian, and Danish Bonds remain the same. Buenos Ay res Bonds are rather higher, and are quoted at 204. Columbian and the other South American had fallen about 4 per cent below our last prices, but have nearly recovered the lost ground. These Non-dividend Secu- rities are always much affected by the decline of the English Funds; and in the absence of local causes of decline or improvement, generally follow their course, rising and falling with them. The proceedings of this week have been no exception to the general rule. We should however add, that a slight degree of firmness was given to Culumbian by the intelligence brought by the Jamaica mail, which represents the republic as quietly settling down after the late dis- turbances. The price of Spanish Active Stock, which had been supported by the expected arrival of the Commissioner for the purpose of effecting the con- version of the over-due Dividends upon it, has given way today, upon the pub- lication of the financial statement for the year, showing a deficiency of 1,800,000!.: the price was as low as 241, but as some good buyers made their appearance in the course of the afternoon, it has improved to 254: just before the close of business, the market gave way again, and it closes at 244 4. Among the reports to which this decline is attributed, is one that M. SAEVANDY has quitted Madrid, and another that the arrangement for the conversion of the over-due Coupons is delayed. The Railway Shares are not in so great demand as they have been ; the ge- neral disposition to purchase seems diminished. The tolls of the Great West- ern have fallen off about 3,0001. a week since the recent accident ; and the shares of this undertaking have fallen back to the whole extent of the advance they made about a fortnight ago. The Brighton are also lower.

SATURDAY, TWELVE O'CLOCK.

The prices are nearly the same as the close of yesterday. There has been an indicatton of improvement in one or two descriptions of Stock, but it has not been maintained; thus Reduced Three per Cents have been at 894, but have since been done 891, and are now 894 4; while New Three-and-a-half per Cents have been at 99, and again at 98,4, and are now 984 4. Bank Stock is quoted at 1671, being an advance of 4 per cent upon yesterday's prices; and India Stock is marked 2464. Exchequer Bills have improved ls., and are now 15s. to 17s. premium. In the Foreign Market, Mexican and the South American Bonds are firmer; the former being 29 to 4, while Columbian has been done at 22, and is quoted 211 22. Spanish Active has been lower : 30,0001. Stock was sold at 244 ; the market has since improved, and there were at one period buyers at 241, but the price is now 241 1. Portuguese Bonds were heavy, 3,000/. Five per Cents having been sold at 324: they are now rather firmer. The Railway Shares are generally at yesterday's prices. We can only notice the following transactions, Birmingham and Gloucester, 644 644 ; North Mid- land, 72. Brighton are heavy at 37 to 1 for the current account, and 374, buyers, for 31st instant.

3 per Cent. Coasols

Ditto for Accoun" 3 per Ceat. Reduced 59 1 891 4 891 I Columbian 6 per Cents Danish 6 per Cents Dutch 24 per Cents. 211 2

61 82 51

31 per Cent. Ditto. 991 4 Mexican 5 per Cents. Cousd . 29 New 31 per Cents.

981 1 Portuguese Regency 5 per Cis.

32 Bank Stock 167 4 Ditto New 5 per Coats. 18:1 . 27 Exchequer Bills 15 17 pm. Ditto 3 per Cents 19 India Stock 2464 Russian 5 per Cents 114 16

Brazilian) 5 per Cents 63 5

Spanish (Active)

241,11 Belgian 5 iwr Cents

101 3