Markets.

Lyttelton Times, Volume XIII, Issue 752, 21 January 1860, Page 4

Markets.

MEMIOUKNE. (From the ' Argus' Summary, Dec. 17.) We have not had to report, so unsatisfactory .a condition of our markets since the crisis of 1855 as we are compelled to do by this mail. The money market has been very materially affected by the numerous failures, assignments, and private arrangements which have occurred during the mouth. Coin and bullion have been decreasing .in the bank coffers, and the managers have felt -themselves- compelled from time to time to draw in the limits of their accommodation to their customers. Provision has had to be made to meet possible contingencies in connection with the contract entered into by the five banks with the Government, in connection with the great railway works. The effect of this has produced no inconsiderable amount of inconvenience, at a time that the stores are overcrowded with goods, which hang heavily on the hands of. importers. , The month has been one of almost daily suspensions, arrangements, or assignments. Rumour has followed on the heels of these, and has shaken public confidence. Money has been throughout increasing in tightness. To the cause above .stated of this may be' added another—the large amount of capital locked up in unsaleable goods. The bonded stocks. for instance, will show this. In brandy alone there cannot be less than a value of .£200,000 invested, at the same time that the imports continue beyond our powers of consumption. It is in this light that the present crisis must be, to some extent, viewed. Were the overstocks realised, and but a supply equal to the demand in the market, there would be uo more occasion for the banks limiting their accommodation. In noticing the causes of the present depression, the increasing indent business cannot but. cause regret. Notwithstanding that it has almost invariably resulted in heavy losses, this system is once more growing rapidly. As carried out in the Australian colonies, it is, in too many instances, simply false trading, enabling parties without a penny to import goods, who, if the market happens to be favourable on their arrival, can pay for them and realise ; but should the reverse be the case, .the firm indenting have the goods thrown on their hands, and have either to hold them for a better market, or force them off at a loss to meet their bills for the payment of the liability thus incurred from other sources. Until some return towards a wiser system of supply in the market takes place, the, account sales must continue unsatisfactory. /