MONEY MARKET.

BrocK EXCHANGE, FRIDAY AFTERNOON.

The determination of the Bank Directors to reduce their rate of discount from 34 to 3 per cent, had yesterday a ,very favourable effect upon the prices of the English Funds. Consols were then heavy, having fallen from 864 to 854: as soon as the alteration of the rate of discount was known, an upward movement commenced, and was continued until the price reached 864, being an advance of I per cent upon the lowest quotation of the day. Today the upward movement was carried a little further; and the quotation for Money reached 864, for Ac- count the highest price was 864. The expected election of Louis Napoleon to the French Presidency, being supposed adverse to the maintenance of peace, gave rise to some speculative sales. As the jobbers had previously borrowed a large amount of Stock till the January Account, the market was well supplied from these various quarters, and the quotations declined to 86*; at which price there were buyers at the close of business.

The course of the Bank Directors has been much criticized, and opinion gene- rally is against it. Those gentlemen have however, the plea of custom in their favour: it has been the invariable rule of their predecessors to lower the rate of discount in proportion as money is already cheap. The demand for discount has (as far as the Bank of England is concerned) been decreasing for nearly the last twelve months. On the 23d October 1847, the amount of loans and bills dis- counted, as indicated by the head "Other Securities" in the Bank returns, was 19,467,1281.: on the 21st October last, it was 10,847,2101.; showing a decrease of nearly one half. The Bank Directors, therefore, to increase their issue of notes, are obliged to force a circulation for money by making it cheaper. They have never let tried the reverse experiment—that of creating a demand for money by lessening still further their circulation, and thus eventually making it dearer.

The Foreign Market has been in nearly the same state. Some activity was imparted to the Northern European Stocks by the improvement of the English Funds; but the business has not been extensive. The price of Mexican Bonds has been well supported: the market rose at the beginning of the week, has been firm since Tuesday, and closes nearly at the highest today—viz. 211 L Spanish Bonds, which bad long been neglected, have advanced, the Three per Cents having risen to 24: the closing price today, however, is rather lower.

The Share Market continued to improve on Monday and Tuesday, but declined again yesterday. Another forward movement occurred when the lowered rate of discount became known. The prices of the principal Shares today are nearly the same as those of last Saturday; with the exception of the Midland, which are from 31. to 41. higher. The minor class of Shares have fluctuated very con- siderably; the rise in many of them having been as much as from 3/. to 41. from the lowest prices. With few exceptions, the reaction has been immaterial, and the current quotations of today are within a little of the highest.

The accounts of the Bank of England for the week ending the 28th October exhibit, when compared with those of the preceding week, the following results-

BANK1144 DEPARTMENT. Increase. Decrease.

Notes issued 15,605 — Bullion 110,166 —

This week. Last week.

Total Bullion in both Departments 13,273,142 13,162,976

Actual Circulation 18,589,990 18,559,965

SATURDAY. TWELVE o'czocx.

The English Stock Market is heavy; the first price of Consols was 86* for Money, and they have since been done at 86 for Account. There is no change in the Foreign Funds or Railway Shares; the transactions in both these departments having as yet been unimportant.

8 per Cent Consols 86 1

Danish 3 per Cents 68 70

Ditto for Account Dutch 24 per cents

45 6

Spar Cent Reduced

:,f 4

Ditto 4 per Cents 69 71 SI Per Cents

854 i

Mexican 5 per Cents 1846... 204 4 Long Annuities 87-16 9-16 New Granada 12 18 Bank Stock 189 9 Portuguese N.4 perCents 1842 231 41 Exchequer Bills 2946 pram Portuguese Old 1824 68 70 India Stock 236 Russian 5 per Cents 98 100 Brazilian 5 per Cents 72 4 Spanish (Active) 5 per Cents 114 4 Belgian 44 per Cents 69 71 Ditto 3 per Cents 1842

2344

Buenos Ayres 20 22 Venezuela 14 16

ChWan 6 per Cents

82 5

Best £1,297 — Public Deposits

£543,496 Other Deposits 260,312 — Seven-day and other Bills

46,132 Goverment Securities, including Dead-weight — 450,007 Other Securities 41,874 _ Notes unissued

14,430 Actual Circulation 30,035 —

ISSUE DEPARTMENT.