The Press. — London, England, 1856-11-15 00:00:00

NOVEMBER 15, 1856. week. In the meantime, we may just observe that it is a great many years since the Bank of England, the great depository for so many rich corporations, found its Private Deposits so low as 9,600,0001, The events of this week in the Money Market have shown that our fears that we had not passed the worst were well founded. We have not only had a tight and unsatis factory market, but the Bank of England has found it absolutely necessary, in order to correct the exchanges and to protect its diminishing stock of bullion, to give another turn to the screw by increasing the rate of discount on short bills from six to seven per cent., and by refusing al together brokers' bills having more than thirty days to run. Practically, therefore, long bills, by which the mass of the trade of the country is carried on, are refused, while short paper can only be done at a minimum of seven per cent. It was only on the 6th of October, rather more than five weeks ago, that the Bank of England, seeing how matters were going on upon the Continent, was obliged to raise its previous rate of discount to six per cent. upon two months' hills and to seven per cent. upon three months' paper. Now the rate is uniformly seven per cent., but with this essential difference, that long paper can scarcely be done at all, while the ratio of advance upon short paper is one per cent. It remains to be seen what effect this change will have upon the trade of the country, which has already suffered an enormous diminution in its profits by the dearness of money. The demand during the week has been very active, particularly from the bill brokers and country bankers. for the former have found their supplies on call falling off owing to the continued investments of the public in public securities at cash prices, while the latter have been obliged to put out paper in order to supply the commercial wants of their respective districts. It is more than probable that a large proportion of this demand was caused by those prudent preparations which ever)body will naturally make when he expects a period of pressure and difficulty. Last week there certainly was a decided impression that the unfavorable state of the exchanges was not likely to be mitigated, while it was well known that the continental demand for gold was showing signs of increase : under these circumstances it was felt to be impossible that money could either be cheaper or more plentiful. The demand consequently increased from all parts of the country, but particularly from the north ; and now we have the result in higher rates and reduced supplies. It is earnestly to be hoped that as the causes of the existing pressure are thoroughly well under stood, it may be borne with patience and without creating alarm. The Bank directors are only obeying a law of necessity in again tightening the screw, and they can have no interest or motive in continuing it so tight one moment beyond the disappearance or mitigation of the motives under which they have acted. Indeed they have every interest in relaxing it at the earliest possible moment. We need not suggest any of the reasons which must compel them to make a change as soon as prudence will admit, as they will occur at once to our readers. Whether that period will arrive speedily or be delayed for a time depends upon circumstances not within our own control ; but the measure now adopted is, from its nature, calcu lated to hasten it, and this consideration should induce us to bear it with something like calmness, however temporarily severely its practical operation may be. The question now arises, what will the Bank of France do under these circumstances? The bills by means of which most of the recent great bullion operations have been conducted come within the class mainly affected by the advance just made. Will the process then be discon tinued ? Will it be persevered in ? We are sure that the internal and external drain for gold upon the Bank of France is still active ; and there is every reason to believe that in the interval between the publication of the last monthly return and that issued this morning gold has been bought at a premium by that establishment to the extent of 6000,0001. Can a drain of this magnitude possibly be continued much longer? Assuming that the supplies are equal to it, can the Bank of France, or, in other words, the legitimate trade of France, bear the enormous burden month after month which it necessarily implies? We say not. It is impossible to accede to such a supposition. The question is, therefore, revived, what will the Bank of France dc, under such circumstances, now that the Bank of England is showing a resolute determination at any cost to carrect the exchanges and to arrest the outflow of gold? There is but one course practicable. Already we see hints and suggestions and rumours that the statutes of the Bank of France are to be revised and the Governor to be changed ; and we have ourselves received a letter from a gentleman in connection with the establishment stating that the reluctance of the Emperor to consent to a suspension of specie payments has been overcome. This, then, is the only course open to the Bank of France—a course to be lamented, no doubt, as it involves a departure from a great principle, but one that is inevitable. If the straggle for gold continues, as it must, between the Banks of England and France, this is the only alternative. Now, if prudently managed, we do not see that any great harm can follow to France or to French trade. But the rate of discount must be kept sufficiently high to promote economy and check speculation, so as to prevent adverse trading balances with this and other countries. By this means the note circulation might maintain its par value, and after a time a resumption would be practicable. But everything would depend upon speculation being re strained. If it be not, there would be a collapse from which we ourselves should vastly suffer; but if it be, France would soon be a recipient of specie in the ordinary course of trade. What would be the effect of a suspension of specie payments upon this country? In the first place, the artificial purchases of gold which the Bank of France is now compelled to make would cease; our discount market would be gradually eased ; and things would gradually return to their natural course. The discount-houses have advanced their rates fur money at call from five to six per cent.; and the joint stock banks have increased their allowance for deposits to six per cent. THE PRESS. The demand for money to-day was less active, and the supplies, from the higher rates offered by the dealers and banks, were good. Some of the discount-houses, we hear, charged eight and a half and nine per cent. upon unex ceptionable paper. On the Stock Exchange short leans on stock could be had at eight per cent. The Russian Railway Concession is now thoroughly understood. It appears to possess some features that, if political confidence were completely restored with that country and our own money market became animated. would probably cause it to float until the shares were tolerably well distributed. But as neither the one nor the other of these conditions, so essential to the success of the scheme, are likely to be realised for a long time to come, we anticipate it will become a break-down as far as concerns English capital. The exchanges since our last have gradually become more unfavorable for this country, particularly with France and Holland. It is now just profitable to remit gold to France as an ordinary mercantile operation. To-day the rates were higher on Hamburg; but there was no change on France or other places. The gold arrivals during the week have been 300,0001. With the exception of about 70,0001. sent to South America the whole of this amount has been absorbed on continental account. Nothing has yet been heard of the James Baines. The delay in her arrival is exciting a good deal of ap prehension, and further insurances have been effected upon the gold she is expected to bring at the rate of rather more than eight per cent. The owners have pub lished a letter in which they say she has met with adverse winds, that the set of the ocean was against her in certain latitudes, and that no anxiety need yet be felt as to her safety. English Securities have fluctuated to a considerable extent since this day week, though the range has been more moderate than might have been previously expected if the actual condition of the Money Market and the change made by the Bank could have been foreseen. Last Friday Consols closed at 93 to I for the December account. In the early part of the week they fell, partly upon speculative sales, to 9'4 to but gradually reco vered to a partial extent. Yesterday forenoon there was a good deal of buoyancy, and quotations improved from 92j to I to 93-16th. They stood at this price when the change made by the Bank was announced. Some dealers appeared not to have anticipated such a policy, and some rapid selling took place. The first effect was a decline to 94 after which they went to 9:21 to j, and remained steadily at this quotation for the remainder of the day. However certain individuals might have felt it, there was nothing like a sentiment of panic about the market. It was merely weakened. This we attribute to the policy of the Bank being both understood and appreciated even by the most reckless speculators, and to the confidence of the public, who are sure to come in as buyers of stock if a decided fall were to occur. To-day Consols opened at We to 11. For a time they were flat, but the Bank of France return being found less unfavorable than had been ex pected, and there being some fair money purchases, the market took a turn, and improvement set in, and it closed at to 93, the highest price of the day. The demand for money, with the other causes that are now operative upon the market, has affected Exchequer Bills. They have fallen from Is. dis. to 2s. prem., at which they stood this day week, to ss. to Is. dis., being -is. lower. But they recovered to-day to 3s. dis. to par. Railway Shares have been dull, and they are a half to one and a half per cent. lower than last Friday, with the excep tion of Great Northeins, which, owing to the discovery of extensive frauds in the register of the company's stock, have fallen much more. The settlement of the half monthly account was concluded to-day, and it has adversely affected business. Last night quotations closed at the lowest point in the week, with a gloomy aspect as to the immediate future. There had been no pressure of stock to create this feeling. It was due solely to the state of the Money Market. To-day, from the circumstances that so favorably affected Consols, they improved to the extent of from one half to one per cent., and the market left off decidedly firm. The dealings in the Foreign Market have been upon a limited scale. Buenos Ayres stock has improved; but almost all others have been nearly stationary, but with a drooping tendency. To day Turkish Six per Cents. ad vanced three-eighths. Joint-stock Bank Shares have been less active; but there is no essential change in quotations. Some of the young undertakings have slightly improved, but they cannot, under present circumstances, be expected to be regarded with any great favour. The discount companies remain steady. Miscellaneous Shares remain dull. Nothing has been doing in Australian Agricultural Shares, and they are flatter. . _ . The frauds upon the Great Northern Company by false entries on the register are said to be to the extent of 180,0001. The modus operandi of the employees has been described in some of the daily papers; but we wait for some official explanation before accepting the description as correct, as it appears to us to lay the directors open to an allegation of an unjustifiable excess of confidence, which, from the business character of some of them, we do not think they will be found to deserve. It may, however, be so. _ _ The wool sales are progressing. The advance realised last week is maintained, and in some cases exceeded. The Ttade Reports of the week from the country read indifferently. Complaint is made in nearly every quarter of the iron, cotton, and woollen districts of the dearness of raw materials, the high price of money, tail the difficulty of effecting sales at remunerative prices. THE BANK OF FRANCE. Tax Monthly Debtor end C reditor Account of the Bank of France, made up to Thursday, the 13th inst., was published yesterday. It appears to be, on no' the whole, of a better character than was anticipated. In analysing its figures, Mr. William Avens, stock broker, of No. 13, Tokenhouse-yard, Lothbury, thus speaks in his circular issued last evening : Although the figures given below contain direct evidence of the perilous nature of the cnsis now prevailing not in Paris only, but throughout France, they show that the Direc torsof the Bank are still consistently pursuing the policy of discouraging merely Bourse speculation by restricting their advances and discounts. The decrease in the bullion appears small, compared with the diminution re ported in the return for the preceding month ; but we are informed by letters from Paris that it would have amounted to at least 400,0001. if the Credit Mobilier had not, on Wednesday, repaid an advance, in gold obtained from Germany, a sum of 7,000,000 f., or 280,0001. Com• pared with the previous return, the following table will show the principal changes made in the position of the establishment during the month, expressed in English currency at an exchange of twenty-five francs to the pound sterling : Decrease in Circulation Decrease in Public Deposits Decrease in Private Deposits 630.812 Increase in Commercial Discounts 297,023 Decrease in Bullion 103,400 Decrease in Advances on Bullion Decrease in Advances on Public Securities Decrease in Advances on Railway Securities .. Increase in Premiums on Purchase of Gold and Silver Decrease in Aggregate Liabilities Circulation (November 13) Stock of Bullion (November 18) 1,689,908 26,420 2,080,986 Z 3,816,047 6,563,418 The premiums paid upon gold and silver purchases now amount to 110,5641. Last month they were 85,1441. A sum therefure has been applied to this irregular purpose, as we deem it, of 25,420/. during the last four weeks— rather a dear operation when we observe the falling off in the stock of bullion. The following table shows com paratively the advances made by the Bank in the two months just closed:— Nov. OCT. .. £20,760,444 £20,463,421 224,134 298,915 1,827,808 8,617,716 1,524,004 2,210,844 Commercial Discounts Advances on Bullion .. .. )11 Public Securities .. ~ Railway ~ .. Deduct .. £24,336,390 .C 26,490,596 24,336,390 Decrease in November £1,154,..1.06 This sum represents, nominally, the amount of assistance which the Bank has withdrawn both from the speculators on the Bourse and from the legitimate trade of the country. We apprehend that more vigour will be required in the same direction before it can be safely predicated that a natural state of things has been attained. BANK OF 1 An Account, pursuant to the A , for the week ending on Saturdi 181.111 C Dal Notes issued .... 423,369,80-5 /23,3F+9,00S •ANKING DI Proprtetors'Capital4l4,ss3,ooo, Rest Public Deposits• 4,631,987 Other Deposits 9,052,055 Seven Day rt other Bills • Including Exchequer, Co Savings' Banks, and Dividend 3 per Cent.Consols Ditto for Account per Cents Reduced 3 per Cents Long Annuities Bank Stock, 7 per Cent Oonnium - Exch. Bills, ➢4d. India Bonds, (1,0001.) ro: Per Cent. Brazilian to Danish 6 (Itch. (Ex 12 Guil jri French 3 Do. 4l Do. Bank Stock .3 .41 .4 .6 .3 6 ENGLAt4I). Let 7th and fttb Victoria, cap. 32 ay, the Bth day of Nov., 1856. PARTIIIZNT. Government Debt 111,015,100 Other Securities .. 3,459,900 Gold Coin & Bullion 8,914 805 Silver Bullion .... -- REIG/ Mond £23,389,305 rities (including Dead Weight An .) 410.512.679 Other Securities .. 1$ 626,428 641 Notes 3,150 435 Gold* Silver Coln 615 347 - f. £32,9M,M3 of National Debt, Mexican Peruvian Portuguese Russian Spanish Turkish Ac Aatw. a Rttrdm. Belgian East. J. Dutch Rhenish East Indian at. Indian Pen G.W.ofCan.,Sh Lyons d Geneve Madras Ns.* Lge.(w.in ) Nrthrn.ot Frac, . Norw. Trak.Prf. Paris a Lyons Paris it Orleans) Faris I Bonin BRITISH FUNDS. Closing Prices. OFFICIAL QUOTATIONS. ,Mond. Tuesd. Wed. Thurs. Friting . 921 t 523 92 1 iPI ' 9 A$ 93 21 92 1 94 1 4 1 i 91; ;91 911 911 1.1 $ ;914 1 911 911 1 911 911 $ 1 1 2 13.16 . 1 li 216 1 214 6 216 bi 24 1p 1p 3d 1 3/11 ld 114 par par , 2 d 2 p 1 d par 1p I FUNDS. Tuesd. Wed. Thurs. Fridep. 99; 100 - -- !-- 1 63 41 • c .38: 310 Mo fefe : s Li L I. --. I 22$ 29 214 2 41 ' I TO 4 I 4 TO egi 90 i 11 0 1 4 TO' t lON RAILWAYS NMl.Tainday. Wednes. rum. . riiillag_ 4il Ti lf li !I pi r 1 p i i 4111 IP* 92 122 t 22 t 221 . ;21 , 214 I 21 3 t 214 1 214 4 . 114 , 234 4 1 231 43 231 424 4 124 , 14 Ttp: 6 7p 8 7 pIS Tp pi 124 104 131 sot 194 2f4 'l4 204 124 8 t I 3 31 3 41 a el alb 4_ 1 8 :" 1 I 8" : t :" 8I 8 14 1 9" 1► 4 44 8 i I .. 46 lB 148474 8 8 1 43 1 1 IMO OIM ! mon ma