ENGLISH COMMERCIAL.

Otago Witness, Issue 921, 24 July 1869, Page 17

ENGLISH COMMERCIAL.

Our London correspondent writes as follows !— - ' ' Since the date of my last communication the money market has been in an excited state,, and without any real cause for the movement. The Bank Directors have been compelled to advance their official rate of discount to 4$ per cent,, and there is an evident tendency to a further improvement, the reserve of the Bank being low. Still there is no probability that the requirements of trade will be excessive, although a full average amount of capital will be required to carry on the commercial operations of the country. The real cause of the late stringency in the market is the rampant speculation whioh has been going on ia the Stock Exchange. This speculation has been of the very worst kind, and such as cheap money always has a tendency to foster, being confined to the most speculative and therefore worst descriptions of foreign Government bonds. Undoubtedly the Banks are much to blame in upholding such proceedings, and it is a very queat ionable matter whether suoh business really comes within the sphere of their legitimate operations. Nine - tenths of the shareholders are totally unaware of the extent to whioh this practice has been carried. Although, however, willing to place the money in the hands of the stock jobbers when rates are low, and the demand for discount is easy, they are the first to take alarm at any upward movement at the Bank, and this has proved to be the case in the present instance. They have withdrawn these loans as far »b practicable, and an enormous amount of stock has been forced upon the market to the great depreciation of prices. It has naturally caused a great need for money, in which the mercantile classes have joined, and there waa at one time every indication of a 5 per cent rate. This feeling has now gone off, the last two bank returns having completely proved that the stringency in the market was caused by an anticipatory demand for discounts, owing to an unfounded belief that an early rise in the bank rate was imminent. So far as the general trade of the country is concerned, which, after all, is the great regulator of the money market, there is so reason to look for any great pressure. On the other hand, the resources of Lombard street have been heavily drawn upon, and I incline to the belief that I shall have to advise a 5 per cent rate in my next letter.

The wool trade is becoming more and more depressed. After all, this was only to be expected, considering the large natural increase that yearly takes place in the production. This cannot be less than 20 per cent, in the colonies, where very little slaughter goes on, and where the sheep are kept for the purpose of wool-growing alone. It would almost appear that prices should recede in a like ratio with the increase in tho production ; but this has not so far been the case, as lower prioes place the manufactured article within the reach of a more extended class, thereby preventing too great a decline. About 240,000 bales have arrived in time for the present series, but it ia expected that something like 35,000 bales will be held over until the next series. The attendance of buyers, both home and foreign, has been good throughout, but there has been no activity in the biddings, and the sales have been characterised by a general disinclination to operate on the part of the manufacturers. Although the stocks of wool ia their hands are notoriously low, they do not ovinoe any great anxiety to replenish them, feeling, apparently, convinced that if prices do not go lower they will at least be able to operate at present rates. As compared with the average quotations of last sales, prioes show a decline of about Id per lb on all qualities Taking into consideration the foot that there is an unusually large quantity on sale at tho present series, owing in some measure to the early arrival of the Australian clip, and it being apparent that the large excess over last year will be kept up throughout the next sales, it is only surprising that the decline has not beon greater. A large proportion of the wool has again oome forward in a very dirty state, whioh again deteriorates from its value. Unless colonists give moro attoation to this point, they cannot hope to secure a realty good market on this side. The following is Messrs Dalgety, Dv Croz, and Co.'s wool circular, dated May 21st a —

"The second Renos of public §aloa of colonial wool ooxnmoncod on 6th mat. The quantities arrived iv time for them are — New South Wales and Queensland, 41,999 bales ; Victoria, 112,041 do; South Australia, 10,916 do; West Australia, 3480; Taa. mania, 8189 do; Now Zoaland, 21,901 do; Capo of Good Hope. 32.009 do.— Total, 239,685 bales, of whioh 5000 or COOO bales aro said to have been forwarded to the manufacturing diftriots, •• Worcgret to havo to report anothcrsorious doolino, which we estimate at Id per lb on grtaiy, and Id to 2d on washod ftoooes, from tho ourreuoy of March last, tho only oxception that vrp can «cc bring good orosi-brod and (tout lons oombing. There has also again been the langour and irregularity whioh marked the August- September sales of last year ; and although most parties aro willing to moot tho markot, there havo boon large withdrawals estimated at 8000 balas.

" The charaotor of the Viotorian dip was noticed in our last circular ; the prevalenoo of thft burr is very much to bo regretted. Good half-brod, espocially the bright-hairod, gtrM satisfactory results ; and whonover this olau of ih«ep oau be depastured, there is ©very cnoouragemont to produoo thin wool. "Now South Walo* olipi hm told very

irregularly,, and only superior clothing has been fairly competed for. Of Queensland flocks as yet but few have been offered.

"Tasmanian appears ia abouttheusualcon- 1 dition, but as oompared with prices current I last Spring the decline in this description —which is fully 30 per cent. — is perhaps greater than in any other, even highly bred choice wools have been comparatively neglected. " South Australian must be quoted Id per lb lower than in March. ' ' New Zealand wools both fleeoe and scoured, have Buffered a considerable decline on prices current at the dose of last year, say I l^d on greasy fleeces, and 2d to 3d per lb on washed and scoured.

"The quantity on the market, and expected to arrive before the end of the year, and the apprehensions of its effect, has, in our opinion, been the main cause of the decline, for both the home and export trade appear to be moderately good, and prices of woollen manufactures not materially reduced. These apprehensions, we hope, will be found exaggerated, and that we may be able to report ere long a better tone.

"There has been a considerable advance in the rate of interest ; on the other hand, the weather continues on the whole favourable for the growing orops. and breadstuffa are very moderate in price." The grain trade has undergone a progressive but gradual decline. Seldom have the prospects, from a consumer's point of view, been more satisfactory. There is a large quantity of really good wheat in the country, and although the imports of foreign wheat have fallen off, they are still extensive. At the same time, the growing plant has made favourable progress, being fairly forward, aud looking strong and Millers, accordingly, have shown little disposition to purchase, and prices have continued to give way. The great fall in the value of wheat since this time last year — whioh exceeds 30s per quarter — has exercised a most perceptible influence upon the money market, especially as the decline in the imports has been considerable, while there has been little or no speculation in cargoes of wheat afloat. Last year the amount of capital required to carry on the trade waa enormous : now, however, it is restricted within very narrow limits, and will probably be more so as the season advances. We are looking for another favourable crop, although we cannob expect one similar to that obtained last season, and prices will, should everything go as anticipated, continue to recede. The fields are everywhere looking very well. Wheat is well above ground, and the recent light rains have forced forwards the late corn with marvellous rapidity. Barley and oats are very well spoken of, being very forward and healthy for the time of year. We have, however, experienced some very rough cold nights of late, which bid us be cautions in our anticipations for the future. Great distress rules throughout the Lancashire districts. No improvement oan be reported in the ootton trade, and prices at Manchester are such as to prevent merchants from operating for the Eastern markets, at the quotations current there, while the home consumption is beiug much restricted. As far as practicable, the mills have been stopped, and stooks accordingly have been everywhere on the decrease. The remedy will, therefore, probably soon follow the disease, although it is in this oase rather an heroio one. The ootton trade is overdone. Too much capital has been sunk in Lancashire, but as the capital has been " fixed " in plant and machinery, it is, in point of fact, irrecoverable. We must, therefore, be prepared for periodical dioturbanoes of the cotton trade, which will only be allayed by the production of an ample supply of the raw material. Somo time ago, I saw some very food samples of Queensland cotton, grown believe, from imported American seed. The staple was of good length, and of fine quality, and 5 understand that the prices realised were such as to satisfy all parties interestod. Natal grows some very good ccV«on, but unfortunately the colonists in tr&j beautiful country want tho energy and the capital to carry oat the undertaking. Fluctuations to some small extent havo taken placo in Manchester goods, and prices leave off as follows :— 39inoh 8 Jib gray shirtings, China quality, lls lj|d ; fair quality. 10s 7)d i 39inch 71b China, 9s 4^d ; fair. 9s ; 32 inch 71b T-oloth, Mexican, tfs 3d per pieoe ; ynrn, No. 40 mulo, good quality, 16d ; fair, 14j|d, No 30 water, good China, 163 d : Bombay, 161(1 per lb. Wow Zoaland Quarta Crushing and Qnld Mining Company, Limited. —This Company appears to bo making satiifactory progress.

Messrs Burrows and Perks, Corn Factors, London, report, under date May 21st, as follows v—

There has beon but little alteration in tho Wheat and Flour trado since tho laßfc mail left ; the consumption of tho latter article has boon large, but tho weekly supplies of country flour havo been equally so, and consequently tho demand for foreign has been wry limited, and sales only practicable in small quantities and at low rates. Tho unusually good quality of tho country floor has greatly limitod tho demand forforoign .this soaton. Tho supply of boat whito wheat from our farmers na* become smaller during tho last few days, aud an advance of Is por qr, has consequently hoe* obtainod in somo instances, but all othor qualities remain unaltered in prloo and dull. Tho grain arrivals from tho colonies during tho month havo boon Utnitod to 2, 122 bags of n«v whoa* by ttx» BonjmcUbl« t wttich

made a very quick passage, and 200 bags of new flour, of Messrs Duffield's manufacture, by the St. Vinoent :Jboth were very superior in quality to the old ; indeed, better could not be desired. The -wheat has been held for 52a per 4961b landed, but to sell 48a to 49s would probably have to be accepted, but the flour has 'een sold at 34s per 2801b. nett ex granary, being, in the latter case, 3s per 2801b. more than the average pries of old flour, of which some quantity arrived, per Georgiaua and Christina Thompson, is still unsold.

Judging from the above-mentioned quality and sales, we can now quote the value of new Adelaide wheat at 48s per 4961b, and of new flour at 34s to 35s per 2301b, both ex granary.

The course of prices here must now be mostly ruled by the weather during the next three months, but there is the probability of a largely increased Bupply of wheat from the Baltic ports (excepting Dantzic) during June and July, as many shippers are only holding their wheat for the remission of the duty here, which will probably be on or Boon after the Ist June ; from Dantzio we cannot expect so much, as shipments from thence by steamer have continued through almost the whole of last winter.

There are still 42 cargoes of wheat on passage from San Francisco to this country, bringing fully 5.000 qrs eaoh ; and our last letters from thence quote their average quality as low as 42s 9d per SOOib, cost and freight to Liverpool or the ports of call, stating also that their market olosed decidedly in favour of buyers.

The weather during the past month has not beea so favourable for the growing wheat aa heretofore, many nights having been cold and frosty, and there having been too much rain for the heavy and marsh lands ; still it cannot be said that more harm has been done than a few warm and dry days will make good, and, in such case, the only result will be a later harvest than the unusually early one of last year ; the fact, however, of an increased and large acreage having been sown to wheat last autumn is undoubted.

The following is Messrs Windeler and Bowel's London Wool Circular, dated May 21st :-

There is no ohange for the better to report in the state of trade generally, the dulnsss that prevails is persistent and universal, and the revival, that has hitherto always followed a time of stagnation, seems as remote as ever. Tho want of confidence in business generally appears forced to an unnatural degree, and highly sensitive to external influences. Aa regards wool, which has. reached auoh a low standard of value as to be> in many districts unremunerative to growers; there must be a limit to its downward course; but the rates now ruling here again show a decline — Bay, on the average, of fully 10 per cent., as compared with two months apo> and yet this only reflects the depreciation which has taken place in the value of its various manufactures during the same period. The result ib disappointing to all concerned.

The general attendance of buyers has been fairly numerous, tufc they act with extreme indecision and fastidiousness, so that valuations are uncortain, and prices realised strangely irregular. Foreign buyers, more especial y the Frenoh combers, are out of spirits, and the want ot their competition is severely felt in the extra qualities < f deep stapled wools, which they hive hithertochiefly supported. The clothing trade is buying more freely, as the depression hero places such wools now relatively cheaper than foreign competing descriptions. The total quantity offered to date amounts to 72,885 bales, of whic'a G GGO bales have heen retired, more than half of these being Port Phillips. S

Sydney Wools o j fj no Bm all breed aro Boarce, »j.<i attract competition, but this is nOo extended to the dooper grown parcels, of which many have been withdrawn, inoluding same of the most oelnbrated Bocks where quality has been sacrificed for lonutht of staple. Good middle classes are fairly supported at a decline of Id per ll>. but d«feotive flocks boII, as usual, very irregularly. Port Phillips show at present the groatott decline ; tho first few catalogues shewed the marked fall on those descriptions, and they have sinco sold without material alteration, but with an arerago doolino of quite 2d per lb— primp ftooka considerably more — aa oompared with the oloao of Mnroh sales, un« washed in tho BMne proportion aro Id per lb> lower. Good avorage washed fleece can now be bought at 15d, fully Cd per lb cheaper than at this period last year j greasy at 8d shows « reduction of 3d per lb.

Capes are lowor in tho same proportion, but at this they appear stationary, good average fleeoo bring* 9d, or ljdbolow March rates.

Tfcaanotions at Antwerp of 30,000 River ■Plate and 5.0C0 Capo commenced today, and [last till sth June. Tho opening aalo has passed off with, a Mr attondanco, but competition dnll, and prices 10 to 15 per oonfc. below tho February ■ories. About one-third of th« quantity offorcd was withdrawn. The proftpcots for tho German fairs, commencing next month, ant unfavourable, and heavy depreciation on last season* quotations is expoctod.

i The Melbourne Herald itatos that ■ gen* ' tleman who lately arrived in that city from Now Zoaland mot Mr Bruco. tho Custom* defaulter, at Auokland, woll-drowod and dobonnair. He dined with him ak th« Ulub in that olty, with, about twwrty mort goatlo* imca.