The Press.
London, England, 1853-09-24 00:00:00

THE PRESS.

Pontg Prial anb it stttilignut.

FRIDAY EVENING.
'1'111.: causes to which we have for go many weeks
alluded continue to exercise their depressing influ-
ence on the Money Market, until they have at length
so operated on the public mind as to produce some-
thing very like a panic. Consols have fallen to 9-Ij,

and every description of funded property has been
deprespted in an equal or greater ratio ; Exchequer

Bills, P. to 4s. discount; and the Three and-a-Quarter
per Cents., which Mr. GladstAnte fondly hoped the
South Sea dissentients would accept instead of

money, at 1(10, are at Mil.

Men are perplexed as to the cause of so great a
depreciation, and are frightening each other. The
food question—the Turkish question—the state of
the Australian trade—the dread of mercantile failures
and disasters—Mr. Gladstontse dilemma—the state
of the Money Market—are the bugbears which are
bandied about to cause men to sacrifice their pro-
pet ty.
In the meantime it is difficult to believe that the
powers will make war on Russia because she has
accepted their ultimatum. As regards mercantile
difficulties, hankers and bill-brokers assure us that
bills and engagements were never better met ; and,
as regards th' footl question (the most important of
all), Canada and the United States are, as we are in-
funned, able to supply any deficiency in the harvests
of Europe. And it must be borne in mind that the
very state of the Money Market, arising from the ap-
prehensions of scarcity, is in itself the greatest anti-
dote against war; by how is Russia, or Turkey, or
Austria, to procure loans, with war and famine staring
them in the lac. "--and, unless they do obtain loans,
they must, despite themselves, remain at peace.
We look, therefore, on the present panic as pure
folly ; for, unless something very unforeseen occurs,
the Bank of England will not raise the rate of dis-
count beyond 4 per cent.; and, moreover, we believe
that no further apprehension need be entertained as
to the true cause of the panic, viz., the diminution of
gold from the coffers of the Bank, as we understand
the Bank of France has offered to supply the Bank
of England with four millions of gold, should she
require it, as she did 011 a former occasion.
Even as regards TiN. t iludstom '. thonicial dilemma,
he has only to intimate to the Bank of England that
in case the Three and a Quarter per Cents. are
below par when the option of the holdere of the
South Sea Stock expires, he will raise whatever
loan he requires on Exchequer Bills, and raise
the interest on all Exchequer Bills to the rate that
will float them ; and Mr. Gladstone may rely on it
that the portion of the panic caused by his want of
foresight won d cease.
It must be remembered that Mr. Gladstone has
already paid off 2,700,000/. Exchequer Bills, and we
should think, from the reputed prosperous state of
the revenue, that he will still have a million surplus.
By January next the gold remittances from Australia
will have so altered the present aspect that he will
have no difficulty in borrowing the money of the
Bank. This is the view taken of the present panic
by those best able to suggest a remedy; it must be
borne in mind, however, that the Turkish question,
and the food question, and:the money question, are
intimately connected with each other; the settlement
of one would probably lead to the settlement of all.
The Bank of England has intimated that during
the shutting they will lend money on stock and other
' approved securities at 4 per cent. What an absurdity
It is that the Bank has not always this power regard-
less of the amount of gold in her coffers !
The rate of money on bills of exchange varies
according to the length they have to run; but we
may mention, as a significant circumstance, that the
bill-brokers prefer discounting bills having six
months to run at the present high rates to short par:
this would indisato that they think the pressure over.
The rate is .L 1 to 1. The Bank broker has been
borrowing money on the Stock Exchange on Consols
a: 3 and 3e per cent. The borrowing of money on
stook instead of selling it is a favourable feature.
Tke neharivi are better; the Corn Market is Is, to
2s. higher. Coossls close WS to 1, and 94 for the
ICCOuut.