ENGLISH MONETARY AND COMMERCIAL INTELLIGENCE.

West Coast Times, Issue 596, 22 August 1867, Page 2

ENGLISH MONETARY AND COMMERCIAL INTELLIGENCE.

(FROM THK ARGUS CORRESPONDENT.) London, June 26. Abundance and want of employment are the leading features in the monetary condition of the country. The golden hoards in the Bank of England and in the joint-stock establishments go on swelling ,from week to week, and no adequate outlets for the productive use of all this stagnant capital are apparent at present. Trade is restricted to the narrowest limit -, speculation shows no signs of revival, aud mercantile requirements aro totally insufficient to absorb the constant influx from Australia, America and other countries. The rate of discount, according to anticipation, was reduced on the 30th of May, from three to two and a half per cent., and tlie tendency is still downwards. As the terms in the open market have fallen to a yet lower level, in the eager competition for the few good bills afloat, further action on the parfc of tho Bank has been lookod for week by week ; and although the directors have forborne to take another downward step at present, it cannot be long before money will be freely accessible at two per cent, The two Banks of England and France contain between them at the present moment upwards of fifty-six millions of unemployed unproductive capital, and all the other banking arteries^ of the country are more or less gorged __ "with wealth which ought to pass into circulation. As this congestion is steadily increasing instead of diminishing, it is becoming a subject of very anxious inquiry for the co.untry, What are we to do with our money ? How can we employ it advantageously and safely; but hitherto the question has been canvassed in vain. The financial seers can show us no visions of tho future — the prophets are for once quite at a. loss in their foretcllings. Everybody is waiting, expecting, hoping ; although from what quarter relief will come nobody can venture to say. Loans,, new companies, railway extensions, mercantile speculations— all are tested and found ■wanting. A considerable time must elapse ere the investing public will forget tho exposures of the past twelve months, and rush headlong into similar pitfalls of ruin. In the absence, however, of any novel form of speculation, or any all-engrossing monetary mania, we may look for a steady absorption of all sound securities against which no prejudice has been excited. This process, already begun, may be expected to go on until the best class of securities shall have reached prices at which the earlier buyers will be disposed to sell and realise their profits. The confidence inspired by this rise in quotations will inevitably atfect more or less favorably all inferior stocks and shares, and lead to their changing hands at advanced values. This movement will absorb some portion of our floating capital, but the great bulk will still remain, awaiting some hitherto unimagined outlet.

The remarkable rise in consols noted iv my last letter continued till towards the middle of June, when ,a slight reaction took place, owing to realisation in the previous advance. In one week quotations rose three per cent., and the English funds stand in a better' position now by five to six per cent, than they did two months ago. This rise, spread over L 730,000,000 of British Government Three per Cent, stock, represents an addition of nearly forty millions sterling to the value of the fundholders' property. Colonial debentures, foi'eign stocks, railway shares, and miscellaneous securities, all participated to a greater or less degree in the upward movement. Fluctuations have occurred during the month from a variety of circumstances, but ou tho whole there is a healthier and more cheerful feeling abroad. The severest check to the growth of that feeling has been the fresh expose of railway mismanagement in the case of the Brighton line. Within the last few days there has been great stagnation on the Stock Exchange, and consequent reaction in prices.

Australian securities have been in rather brisk demand. New South Wales debentures have improved so greatly in value, that the speculators who took up the last loan have been realising a profit of from five to sir per cent, on their purchases. Victorian debentures stand again afc 110 [in our Stock Exchange list. New Zealand debentures are held in great favor, although those issued by the provinces fail to find buyers oven in tho present plethora of our money market. The Tasmanian Government are about to try their hands at a small loan of £100,000, which, it is expected, will be brought out by the Bank of New South Wales within tho next fortnight. As the colony is not much known in England, the success of this loan is very doubtful.