THE Evening Star. TUESDAY, AUGUST 17, 1869.

Evening Star, Volume VII, Issue 1960, 17 August 1869, Page 2

THE Evening Star. TUESDAY, AUGUST 17, 1869.

Fro3l articles that have appeared in the English papers, it seems likely that some change will be made, or has already been made, in the relationship of the Bank of England to the British Government. What the precise tiaturo of that change is we are not informed, beyond the bare intimation by Mr Lowe, that the money market must henceforth take care of itself and not lean upon the Government for “ help ’* and consideration. Should this determination be carried out, and the monopoly of the Bank be retained, the

periodical difficulties which have invariably led to a relaxation of the rule limiting the issue of paper, will prove more than ordinarily ruinous when they occur. There is nothing more difficult to meddle with than banking arrangements. However bad the law in regard to them may be, trade invariably conforms to its requirements, and the vast and complicated engagements of commerce depend upon its stability. Any alteration, therefore, tending in the slightest degree to unsettle those arrangements biiugs sudden ruin to thousands who arc utterly unable to trace the causes of the disasters brought upon them. The financial history of Great Britain proves this beyond all question, although the simple facts have been so overlaid with mystery as to render the study of the theory of currency distasteful even to those immediately interested in it. It is not necessary, however, to wade deeply into those mysteries to learn the intimate connection that there is between a rise of one per cent, in the rate of interest at the Bank of England and the failure of large firms in different parts of the country. Morgan’s “ British Trade “ Journal" connects the two together in the Monthly Summary under date June 2nd. From it we learn that the Bank of England raised their rate of “ discount to 4,1 per cent, on the 6th “ May from 4 per cent., at which it “ was fixed on the Ist April.

“ Immediately upon the Bank rate <l moving upwards, several failures “ were announced in many directions. “ In the Manchester, Leeds, and Dun- “ dee trades, one or two suspensions “ were for a time almost daily ; and “ subsequently, in London, failures “ occurred in corn, wool, hops, {l and tallow.” These failures are attempted to be accounted for in a manner that may be true of one or two houses, but cannot be true of all that have suffered. The writer assumes that the failures have been the result of speculation in businesses in which the tradesmen were not legitimately concerned. _ He says, “ When certain business is dull, the “ weak minded and impatient are 11 tempted to fish in other waters, from “ a conceit that the regular members “ of that trade have left opportunity “ for strangers. . . Amongst the “ wisest commercial men it is an old “ maxim to stick to your last, in dull “ times more closely than ever, that “ the very crumbs of profit may not “ escape you. Some, in their haste to “ grow rich, pursue a contrary course, “ and while in many cases they promote “ their own embarrassment if not ruin, “ they form an instructive example to “ others.” We have transcribed the passage in full, not because we think it offers any clear explanation of the relationship between the rate of half per cent, and the consequent failures, but because it may prove a healthy maxim for many to adopt who may feel tempted to rush into the wild speculations now afloat in New Zealand, The failure of many of those British firms is explicable on entirely different grounds. The rate of discount in Great Britain is at once the price and the measure of credit. It would matter perhaps very little comparatively whether on the amount of two or three months’ transactions, four or four and a half per cent, interest was paid, although in the heavy returns made by some of the large firms at Home, the difference might be enumerated by thousands of pounds. But the rise properly interpreted means restriction of credit. It means, that whereas the arrangements for the liabilities of the firms were made on the basis of a certain amount of accommodation with the discount houses that amount has been so much curtailed as to prevent their meeting their engagements. It would not be difficult, were it sufficiently interesting, to trace the operation of this restriction through its various ramifications, and to show how all classes at Home are affected by those monetary changes. It might easily be shown how, from the laboring classes upwards, all are in one way or other affected by a “ turn of the screw,” as it is termed, at the Bank of Lngland. We, in the Colonies, are not uninterested in the matter. However remote from us it may appear, the price of xv 001, hides, tallow, and other Colonial produce, is to a great extent dependent upon the rate of discount at the Bank ; and to some extent has that contributed to the perpetuation of the low prices which for such a length of time have ruled. We are glad, therefore, that the latest advices indicate symptoms of more ease in the money market; and we hope the consequence will be increase of employment in the manufacturing districts. It is very annoying to lie the victims of a vicious monetary system, against the evils of which neither remonstrance nor action can prevail. Whether or not Mr Lowe’s words point to the abolition of the monopoly hitherto enjoyed by the Bank, it is impossible to say. Probably some change of the sort is under .consideration,

Mining.—By the Omeowhich arrived tliis morning from Melbourne, has arrived a largo portion of the machine* y intended for the Duke of Edinburgh Quartz Crush in ; Company, and which ought to bo in working order within three m ui'lis. If the reef turns out as it is expected by the company, it will do a great deal of good for Maeries hint, whore the reef is situate, and which township is at present almost forsaken by the minors, &c.

Bishop Jennkk. —The London correspondent of the An/it s- gives the following extract from a letter written by Bishop Jenuer to a friend in England Hie truth is I alii nearly wearied out with this business. 'Hie isolation, the humiliation of my position, which culminated last Sunday in my having to sit under a lay I'c t tier, have well nidi broken me down. I feel inclined to let mattei'S take thcii' chance, give myself no further trouble, and ask my friends to leave nxe to my fate.’

Deputation. —This morning, a deputation from the Volunteer's —consisting of Major Bathgate, Captain and Adjutant Atkinson. and Captdns M’Farland and Batterson—had an interview with his Honor the Deputy-Superintendent. Major Bathgate explained that for some time past the Battalion Band had been indebted to the kindness of Mrßegg, music seller, for a room in which to practise. Now, however, Mr Begg was unable to give them the use of the hall, and the deputation had been given to understand that it was probahlo that the Provincial Government would allow them the temporary u-e of a room in the New Post Office for the purpose. —It having been explained that the room would only be require I from seven to nine o’clock in the evening, his Honor granted the application.— The deputation then withdrew.

Acclimatisation. —It would appear probable that the supply of trout ova which rhe Provinces of New Zealand will receive this year wdl be very small. The Southland Society have received intimation that their Province will oi.ly receive 500. I his intelligence has caused the Superintendent to write to Mr Robert Officer, calling his attention to a statement made in that Society's report some years ago, to the effect that Southland alone of all the New Zealand Provinces had contributed towards the object of introducing lislx ; she has fumidied the very hand--ome sum < f L2OO, and submitting that this fact should have some influence in her favor now, especially as she had been a year behind the other Br vinces in getting her first supply. The trout in the possession of the Southland Society are as doing well; some seen recently, both in the rill and in the stream outside, were nice plump fish of six or seven inches in length.

Late Telegrams.—The Melbourne Herald, of the 3rd instant, says We are glad to learn th it by a private telegram the good news of a recovery in the price of wool is fully confirmed. The private information is in these words :—“ Woo sales closed. Opening prices about recovered. Captain Sturt, the well-known Australian explorer, died on June 1(>.

New Zealand Telegraph.—ln acdance with M r Vogel’s recent announcement of a uniform rate, the Government notify that on and after September Ist, the following ta> iff will be in force for ordinary telegrams :—From any station to any station - for the fi.st ten words, 2s fid ; for every additional five words or fraction of five words, fid.

Nugget.—A very line nugget, weighing ,J6oz KSdwts 19g<s, ivas exhibited by Mr Villiam Wilson yesterday. It arrived h y the prcvimis night’s coach from Hokitika, and was sent to Mr W Ison by Mr James Wyldo. Mr WyUle also forwarded a certilicar c from Mr Kirtou, of one of the banks in Hokitika, stating that the nugget belonged to Mr Wyl te, and that it was found on the Moonlight Creek diggings. Province of Nelson, by a digger named Janies M'Closkie The nugget is much water-worn, and we are informed by Mr Wilson that it was found about half-a-mile below the quartz reef. The gold is of a splendid color, an i uncommonly like that met with in the Kingowcr and Mount Korong districts, Victoria. Several other smaller nuggets have also been sent to Christchurch by Mr Wylde. —Lyttelton Times.

Quartz Reefs in Westland.—Out Hokitika contemporary of August 9 lias the following -That there arc quartz reefs of a payable character in Westland has been all along at least probable, and we are credibly informed that a payable reef was discovered more than two months ago within twenty miles of Hokitika. The discoverers, however, have desired to get an extra claim, a-.d though they have i cen endeavo ing to Jo so for some time, they have been una iecessful. and consequently have delayed the announcement of their find. We are not justified in giving particulars that have come under our notice, but may say generally that it is possible Mr Peeves may have had some foundation iu fact when he predicted a rush to the Taipo. The Greyrnouth paper of Aug. 7, referring to a paragraph recently appeared in this journal, says : —The first company on the Coast was the Waimangaroa Quartz Peef Company, at Westport, which is still in operation. The Moonlight Company have euteied into a contract for the boating and packing of their machinery from Greyrnouth to Moonlight Creek, at the very cheap figure of L2O per ton. The packing track up the creek is expected to he completed in a fortnight, and we believe the Nelson Government have agreed to pay one half the cost. It is anticipated that the first crushing of the company, by their own machinery, will take place on the claim about Christmas.

The Stewart’s Island Diggings.— The Southland Times says Reference to our shipping columns will show that no le-s than three boats cleared at the Customs on Friday afternoon, for Stewart’s Island. They all sailed with Saturday morning’s tide, each loaded with stores and passengers for the scene of the newly discovered quartz reefs. Most of the men who have gone arc the represe ta'ives of companies which have been formed within the last day or two, and when arrived th re will make a population on the ground, including those who went by the James Paxton, i f about sixty souls. :t is to be hoped the vigorous .steps now taken may result in complete succ-ss. Toe News humorously dcs-ribes the excitement occasioned at Invercargill by the receipt of the news of the discoveries. It says the town presented an appearance of unwonted bustle yesterday, in consequence of the gathering in the main streets of various groups of citizens eagerly discussing the latest phase of the gold fever, which rages with un-

abated vigor. Each knot of talkers was evidently the nucclcus of a company, intended to develop the (as yet) unknown and very apocryphal auriferous resources, vaguely supposed to he lying perdue in the vioinitv of Ruggedy (Stewart’s Island). Such animated gossip about “quartz,” “leads,” “cushings,” and “ prospects.” was never before heard in the place where our “ leading citizens” most do congregate. Not the least amusing feature in connexion with the subject on which they wore so exclusively engaged was the profuse exhibition of quartz specimens—good ones too—which were handed about, and cmiously inspected, as if they were the identical stones the Longuet party brought bom Stewarts Island. Without exc ption, however, it turned out that the tempting bits of golden quartz were long hoarded mementos of Bendig ■, Ballarat, Skippers, Waipori, or other well known and equally well wrought ree f s —the quartz from the island as invariably only presenting indications. Here and there a group of miners were to be seen busily perfecting their arrangement ■or tlic trip in one of the several boats furnished for the occasion. Pikes, gads, hammei's, blasting powder, and tents were at a premium, although we must say the supply appeared equal to the demand. If the “ rush ” does nothing more, it will have circulated money, and established the fact that in spite of dull times the stock of loose cash in the hands of all sorts of people is not yet exhausted.”