DISCOUNT AND MONEY MARKET.

Press, Volume XII, Issue 11575, 23 November 1867, Page 2

DISCOUNT AND MONEY MARKET.

[From the " Economist," Sept. 21.] The scarcity of bills, and the difficulty of finding temporary employment for the very large%amounts of money upon the market, is everywhere commented upon. Now that the harvest has been for the most part secured, no apprehension exists as to the results, which seem to be much better than had been expected, and near an average. The anticipated shipments of grain from the United States and the Black Sea are only calculated to reduce the price of wheat and benefit the consumer, as American and Continental purchases of manufactures, of iron, and of coal, seem large enough to secure this country against any important export of the precious metals in exchange. The use of paper money in Italy accounts, to a great extent, for the huge accumulation of bullion in the Bank of France The same use of paper in America, and the consequent liberation of large amounts of epecie, taken in connection with the calling in of balances from abroad after the crisis of last year, will explain the still growing stock of the precious metals in this country with the undiminished abundance of capital in England and France. The trade carried on for consumption is Bound ; but, as there is a total absence of speculation in every department, the cessation of the extraordinary act'vity inaugurated in and after the year 1862 is the more remarked and felt. Some exceptional transactions in six months' bills are reported to have taken place at If par cent., proving that a long period of easy money is looked for.