MONEY MARKET AND CITY INTELLIGENCE.

Otago Daily Times, Issue 1119, 22 July 1865, Page 9 (Supplement)

MONEY MARKET AND CITY INTELLIGENCE.

Nothing in political history can be remembered that has ever drawn forth a more unanimous feeling than was produced by the deplorable news received from America. Personally, President Lincoln enjoyed kind regard from every man in England, and there has not been a single exception to the sense expressed as to the loss sustained, not only by America, but by all the nations who have desired, amid existing difficulties, to maintain an impartial, yet cordial, intercourse with that country. The extent to which his influence in the latter respect was estimated is evidenced by the severe fall in all classes of securities and produce, which occurred on the receipt of the intelligence. This was soon after recovered owing to the re-a9Bi»ring character of the Americau news later to hand, which evidenced a political strength on the part of the government unsuspected by most parties in this country. The expectation of further failures in commercial circles at home and abroad, caused renewed depression on the Stock Market, but to-day therein a more confident feeling, owing to the increasing ease in the Money Market, and the continued seasonable weather.

The directors of the Bank of England, at their weekly court on the 4th of May, raised their minimum rate of discount from 4to 41 per cent. The last previous alteration took place on the 30th March, when a reduction from 4i to 4 per cent, was announced. Until very ' lately, the produce market was unnaturally depressed, and, the fear of further failures rendering merchants unwilling to embark in fresh transactions, the discount market was unhealthily stagnant. The prospect of peace in America, however, imparted a better tone to the produce markets, and caused an increased demand for accommodation both at the Bank of England and elsewhere.

It is suggestive of an easy money market for some time, to remark, however, that the rhe in the prices of produce has not yet gone so far as to attract from abroad supplies large enough to derange the exchanges. Indeed, we have at the moment to report a rather depressed feeling. Should the action now taken by the Bank of England have the effect of protecting our market against withdrawals of bullion for State loans and other foreign purposes, the commercial public will have no reason to complain of the conduct of the directors in fixing the rate of discount at the still moderate point of 4-A per cent.

Tenders for the "balance (L 127.500) of the Queensland Government 6 per cent, debentures lately offered, were opened on May 3 at the Union Bank of Australia, when it was announced that the whole amount had been subscribed for at prices ranging from LlO2 11s to LIO3 Us per cent, or above the official minimum.

At the meeting of the Otago and Southland Investment Company, a dividend was declared for the half-year, at the rate of 6 per cent, per annum. Colonial Government Securities:—Victorian Six per Cents., April, October, 108|, 109£ ; Queensland Six per Cent 3., January, July, 103, 105; New South Wales. 1866, January, July, 100, 102; New Zealand Six per Cents., 104,106; South Australian Six per Cents., 1878, 106, 108.