TRADE AND FINANCE.

Press, Volume XXIX, Issue 3926, 21 February 1878, Page 3

TRADE AND FINANCE.

The harvest of the year in England was one of the worst on record, and the com- I mercial depression of two or three previous I years has not abated. The returns of exports show a considerable diminution, though the large amount of imports proves that the purchasing power of the community is not seriously affected. The stagnation extends to eTery other commercial country ; but hopes of an early revival are entertained in the United States. One indication of the unsatisfactory state of trade is furnished by the dif-. ficulty of employing money in discounting bills. From April, 1876, to May, 1877, the bank rate of interest remained at 2 per cent., and tbe market rate was bo much lower than tbe official quotation that the London joint-stock banks discontinued their acceptance of money" on deposit, except from their regular customers. In May tbe rate was raised to 3 per cent.; and, after a temporary reduction, it was advanced in October to 4, and afterwards for a few weeks to 5 per cent., but the main object of the Bank of England was to guard against a drain of bullion, and the supply of money for purposes of discount still exceeds the demand. The depressed state of commerce and .'industry has, unfortunately, not suspended the disastrous struggle between employers and workmen.' A Btrike in the cotton trade at Bolton and a lock-out by the iron shipbuilders on the Clyde have caused much local distress. The colliers have been advised by some of tbeir leaders to reduce the output of coal, in the hope of raising prices at the cost of the community. The construction of a great public building in London has been interrupted by a strike oi the masons for increased wages and shorter hours of work.