THE STATE OF TRADE.

Wairarapa Daily Times, Volume 2, Issue 186, 16 June 1879, Page 2

THE STATE OF TRADE.

The most striking feature of Engish commercial news is the extraordinary, price to which the funds liavo risen consequent upon a large supply of money for which there is 110 demand. The city editor of the Times writes on April 21st" Interest at the moment in the city is centred in the steady rise in Consols, which arc now quoted J per cent of par, The small wars whichthe Government have on hand exercise no effect upon the minds of investors compared with that which was produced by fears of a rupture with Russia. The probability of Romnelia being quitted by the Russian troops, and the social troubles of Russia, seem, in fact, to have allayed all apprehensions regarding further serious differences with the Russian Government, and hence the strong ' current of floating capital which is now flowing into British Government stocks, under the influenco likewise of exceptionally abundant money. The rise is probably due also to operators for the fall diminishing and closing tlioirengagements. Speculators, for the fall in this class of security, have been singularly wrong in their forecasts from the period of the cominoncement of the troubles in the East up to the present time. Apart from this influence, which is but transient, there is no doubt that wc must go back very many years before Ave could discover a combination of circumstances such as are at present forcing up the price of the best securities. In whatever quarter we look it is difficult to find traces of such a revival of trade as might be expected within a reasonable period to absorb a considerable proportion of the idle money in Europe. The banks quite rightly deem it wiser to do nothing rather than meddle with doubtful business, and the result is that borrowers and lenders alike are competing for the only securities that are beyond suspicion, with the result that we are now witnessing. Bills have been discounted to-day at to and the loans are obtainable on the easiest possible terms." On the same day the Daily News writes " It is now becoming a serious consideration with those who have capital or savings to invest what channel they shall seek for its profitable employment, In spite of the bad times with which the country has been afflicted for three. or four years, an undeniably large amount of money has to be invested, aud when, as is now the case, the rate of allowance made by bankers and others for deposits is almost nominal, the natural disposition is to find, if possible, some safe and more profitable outlet. At the present the many millions aire utterly unemployed in commerce owing partially to the current stagnation, and partially to the low quotations of most description oi produce and manufacture. In these circumstances it is not matter for surprise that a rush is made to buy high-class Government securities, such as Consols. Tin price of to which Consols have now attained, is without precedent in recenl years, and not only private individuals but banks find it more remunerative' tc shift their available balances into a security which will bring them somewhat mor< than 3'per cent. Daily the question ii asked by those possessing money to iuves as to the direction their investment shoulc take. While in one sense it is satisfactory to find so much reliance placed in tho na tional stock, on the other hand its only toi sip a sign" of slackness and depression Monoy cannot find a vent in the ordinar channels, and recourse is had therefore ti the safest substitute. With the outlool so ; blankand unsatisfactory as now, it i not surprising that predictions are freel; hazarded regarding the possible futur' quotation of Consols,. It is possible tha