MONEY MARKET.
STOCK EXCHANGE, FRIDAY AFTERNOON.
The amount of bullion in the Bank of England, which is at present sup- posed to exceed 9,500,0004 and of which there is from the state of the foreign exchanges every prospect of a continued increase, must drive the Directors of the Bank to adopt means for increasing the amount of their circulation ; and, as a natural consequence, we may expect that a reduction of the rate of dis- count to 34 or 3 per cent will soon occur; it being quite impossible that the Bank of England should find employment for its capital at 4 per cent while other capitalists are ready to lend at between 2 and 3. The rates of exchange are now higher than thy have been for the last ten years ; and as there does not seem any circumstance likely to arise to cause a decline, we may therefore speedily anticipate the expected reduction. The operations of the Stock Market during the past week have not been ex- tensive : the slight alarm that existed on the first outbreak of the manufac- turing disturbances appears to have completely subsided, and the Funds have quite recovered from their temporary depression. The settlement of the Consol Account occurred yesterday ; and so little was the demand for money, that a banking-firm at the West end of the town, which lied lent 500,000/. at 2 per cent in the Stock Exchange last settling. day upon the security of Eng- lish Stock, was not enabled to obtain the same rate of interest for the money, and consequently delivered the Stock. The "continuation," or premium paid by the speculators to carry over Stock to the next (October) Account, varied from 3-16 to per cent; and the interest paid was consequently at from 15 to 2 per cent upon the capital employed. It is not surprising that, under these circumstances, the price of every description of Government Stock should have improved from 4 to 5 per cent, and that the market closes firmly at the highest quotations. India Stock has advanced, and is today 251. Bank Stock, however, has receded between 2 and 3 per cent, from the expectation of a reduction of the rate of discount, which will diminish the profits of the Bank: this security is consequently very heavy, and has been done today as low as 1674. The apparent anomaly of a decline in this Stock and a rise in every other is therefore accounted for : the plenty of money which gives increased value to the Government security tends to diminish the value of the Stock of a corporation which, making its profit by the employment of its capital, is always in the most flourishing condition when money is scarcest ; the small rate of profit on an extended circulation never producing as much as the higher rate upon a diminished scale : a circulation of 16,000,000/. employed at 5 per cent would produce 800,060/. per annum, while one of 20,000,000/. employed at 3 per cent will only produce 600,000/. The transactions in the Foreign Market have not been much more extensive than usual. The demand for Portuguese Converted Stock for the Dutch market continues; and under its operation, the price of the Bonds has im- proved from 5 to 5 per cent : there has consequently been a trifling advance in the other descriptions of Portuguese Bonds. Spanish Active Stock 1 as remained tolerably steady ; but today it is about i per cent lower than our last prices. The Three per Cents have declined in a much greater degree, and are nearly 1 per cent below Saturday's prices. It may be as well to remind such of our readers as hold Active Stock, that unless they present the Coupons for conversion at Messrs. Rain, Irevniu, and Co.'s, before Three o'clock on Thursday next the 1st September, they will not receive the dividend for the year 1841 upon the Three per Cent Stock into which these Coupons should Le converted; thus incurring a loss of 128. 4d. per cent upon the Stock they hold. Mexican Bonds have been depressed to 34; but have since improved about 4 per cent. Columbian are without material variation; as are the other South American Bonds.
There have not been any extensive operations in the Railway Shares. Prices generally are lower. The Brighton had been depressed to 33, but have im- proved about 5. Blackwell are also heavy ; and there does not seem to be any disposition for speculation, or extensive investment.
SATURDAY, TWELVE O'CLOCK.
The English Funds have experienced a further advance of 5 per cent this morning : Consols have been quoted at 925 for Money and 93 for Account ; the price is now 924 5 for Money, while there are buyers at 93 for Account. Bank Stock has been done at 1675 and 1685, and does not show any symptom of improvement. Exchequer Bills are the same. The transactions in the Foreign Funds have been quite unimportant, and prices are without variation.
The following transactions have occurred in Railway Shares Bristol and
Exeter, 445; Edinburgh and Glasgow, 50 485; Ditto, New, 35; Great Western, 85 5; Brighton, 335; Ditto, New, 105; Blackwall are nominally 85 9. There seems to be a slight inquiry for the minor description of Shares. SATURDAY, Foos tt Cutor... Both the Foreign and English Funds close at the morning's quotations ; the business of the afternoon having been quite unimportant. We have to notice the following transactions in Shares, in addition to those quoted in the morn- ing. Railways—Eastern Counties, 9 85; Ditto, New, 71. 193. 2d.; Ditto, De- bentures, 10/. 93. 2d. ; Edinburgh and Glasgow, 495; Great Western, 855; South-western 63; North Midland, 59 • South-eastern and Dover, Scrip, 6 '- York and North Midland, 87. Banks—Australasia, 524; Ditto, New, 144 i 3 rr Cent. Consols 92* i Columbian 6 per Cents ..... 204 1
Ditto for Account 934 Danish 3 per Cents 82 3
3 per Cent Reduced 935 4 Dutch 24 per Cents 52 * 34 per Cent Ditto 1014 4 Mexican 5 per Ceuta-Coned . 341 1 New 34 per Cents 1001 i Portuguese Regency 5 perCts. 334 4 Bauk Stock 167 9 Ditto New 5 per Cents 1841. 284 f Exchequer Bills, 24d. .. prem 51 53 Ditto 3 per Cents 191 20*
Ditto. 2d. do. 49 51 Russian 5 per Cents 1144 1154
India Stock 2504 14 Spanish (Active) 5 per Cents 201 I Brazilian 5 per Cents 65 6 Ditto 3 per Cents 1842 191 20 Belgian 5 per Cents 102 3 At the latter end of last week, the Committee of the Stock Exchange pub- lished resolutions declaring that Mr. FRANCIS TOWNLEY DE BERCKEM, and another gentleman who was likewise so unfortunate as to be selected by RAFALLo to negotiate loans upon the spurious Exchequer Bills, had ceased to be members of the Stock Exchange. It should be stated, that liability to the bankrupt-laws is a disqualification for the Stock Exchange ; and as the two gentlemen in question might have come under that category and been rendered personally liable for the sums raised for RAFAEL° upon the disputed securities, their reelection in March last was suspended until last week, when its con- sideration was resumed. The result of the determination of the Committee was, that the two applications for reelection should be rejected ; that of Mr. DE BERCKEM, upon the ground that "his conduct had been such as to render him altogether unfit to be a member of the Stock Exchange "; while the other broker was excluded mainly in consequence of his having acted in contravention of a law of the Stock Exchange, which forbids its members to transact busi- ness with persons who have become defaulter.; although, from the negligent mode in which the resolution rejecting his application for admission was drawn, it is made to appear as having been consequent upon his connexion with RAPALLO and the spurious Exchequer Bills. Mr. DE BERCHEM has excepted against this proceeding of the Committee; and has addressed a letter to every individual member of the Stock Exchange, stating, that although he has de- termined upon a legal appeal against this decision, he has "judged it proper to outstep the tardiness of the law," and at once to protest against the conduct of the Committee. After some remarks which are only of local interest, he thus describes the first discovery of the fraud practised upon him, and his subsequent conduct- " It is now well known that for a series of years I contracted large loans upon Exche- quer Bills ; the produce of which loans was devoted to the payment of Foreign Stocks, bought and token up by the same principal. I could not possibly have had the smallest suspicion of there being any irregularity in the proceeding. when it is noto- rious, both to the Commissioners appointed by Government and to the Committee of the Stock Exchange, that I have been often personally liable fur many thousands above that which 1 possessed, upon the sole security of those instruments which the Govern- ment now asserts to be forged. "The first misgiving that I had as to the straightforwardness of the transactions in which 1 was engaged. was brought about by a personal communication frurn Mr. John Francis Maubert; who told me, that he had little doubt but what the bills funded at the Bank had been fraudulently reissued, inasmuch as there were duplicate bills of the same date. On that communication I went with Mr. Maubert to the Chancellor of the Exchequer ; taking my books with me, and giving every facility that was in my power to trace and detect any fraud that might exist. The duplicate numbers under the same date which alarmed Mr. John Fraucis Maubert, turned out, upon inquiry, to be genuine bills, issued under two different grouts; but, shortly afterwards. Mr. John Francis Maubert discovered triplicates of those bills, and duplicates of others of which there had been but one grant. This at once showed frauds it was too clear to me that 1 had been made the victim of false representations. What, under these circumstances, could I have done excepting that which I did? namely, attending personally upon the Chancel- lor of the Exchequer, depositing the whole of my books with him, and giving him every facility in my power in the prosecution of his inquiries."
The question kitween Mr. DE BERCHEIII and the Committee will be the subject of future legal proceedings ; we therefore offer no opinion upon it; but have felt it due to that gentleman to give the exculpatory portion of his defence.
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