The Express.
London, England, 1862-07-21 00:00:00

HIGH WAITE AT LDIEDGH BRIDGE.

Tins Afternoon, 9b. Mat.
To-moutow—Mornlng, 10h. Aftoruoon, 11h. O.

LONDON, MONDAY, JULY 21.

Tim meeting held at Bridgewater House on Sr
turday is a good commencement of the more syste-
matic organization of voluntary effort which is so
much needed in order to meet the growing dis-
tress in the manufacturing districts. At the same
time, both in its composition and results, it can
only be regarded as a beginning. While a good
number of noblemen and gentlemen connected with
the manufacturing districts were present, many,
and amongst them some of the largest landowners,
were absent: and though ten thousand pounds is no
doubt a considerable sum, it is a mere drop in the
bucket compared with the territorial wealth of the
subscribing classes, or the fearful exigencies of the
crisis to be relieved. The importance of the
meeting mainly lies in the decision unanimously
arrived at—" That the increased distress
"in the cotton districts calls for increased
" efforts for relief, and that it is incumbent on
" those who are connected by property with those
" districts to take a prominent part in contributing
" such relief." This decision marks another stage
in the progress of the distress, by formally recog-
nising that the time has fully come for voluntary
effort to do its utmost towards relieving the grow-
ing pressure of this great calamity. The decision
has not been arrived at a moment too soon. The
close of the session is near, and before Parliament
rises it may possibly be necessary to bring the sub-
ject under its consideration. But no appeal can
well be made to the Legislature on behalf of the
districts affected until these districts have done
their utmost to help themselves. " The public
"purse," as Lord DERBY justly said, "is the last
" resource ; and if it should come to that, those
" connected with property would be placed in the
" best position for asking such assistance, if they
" could show that they had not abandoned their
" duty, and bad acted liberally in relieving the
" distress." Now that the wealth and landed
property of Lancashire and the adjacent districts
are formally appealed to we very confidently ex-
pect a prompt and liberal response. Contribu-
tions will flow in on a scale proportioned to the
magnitude and severity of the suffering to be re-
lieved, and the sum already subscribed will doubt-
less be multiplied over and over again in the course
of a few days. But, after all, as we have repeatedly
urged, money is not by any means all that the case
requires. Well-considered distribution of the sums
collected was quite as essential to the effectual re-
lief of the local distress as large subscriptions.
Then there is the equally important question of
finding, if possible, some means of employment for
those who are striving in every way, and by every
sacrifice, to keep themselves above the condition
of paupers. But if the larger plan of conference
and co-operation referred to at the meeting is
carried into effect, we may hope that these more
difficult conditions of the problem to be solved will
be satisfied.

BANKERS and capitalists are once more begin-
ning to feel uneasiness, not from apprehension of
bad debts or commercial crises, any unsound de-
velopment having long been discountenanced, but
simply because they do not know what to do with
their money. The accumulation is becoming in-
conveniently large ; and though the inducement
usual at such times is held out in the shape of a
gradual concession as regards terms, there is no
adequate demand. The banks and discount esta-
blishments are all underbidding the Bank of Eng-
land, yet are evidently much fuller of
money than they like to be, while the
business of the Bank itself is gradually
dropping off, notwithstanding the recent re-
duction of its charge to 2i per cent. It would
seem that trade is not in a condition to receive a
stimulus from any possible increase of financial
facilities or financial temptations. Legitimate
trade ia, or ought to be, by its very nature exempt
from influences of this nature ; to a house carrying
on a steady mercantile business, in the proper
sense of the term, it ought to matter little whether
the rate of discount be 5 per cent., or only
half as much. But there have been many
occasions when the more speculative classes
of the commercial community have been found
keenly susceptible of elation or depression,
according to the variations in the money market,
and when a large influx of speculative commercial
business has followed such an accumulation of
idle capital as that now witnessed. A system of
credit of this kind was, of course, unsubstantial,
since it rested mainly on conditions which any
accident or adverse event might invalidate, when
its fate was that of a house of card; except that
its collapse carried desolation over a wide area.
Now, however, there is nothing of the sort.
While legitimate trade does not seem to
be accelerated one jot by the abundance of
money, mercantile speculation seems to be
sunk beyond the reach of any stimulus. Apart
from the exceptional speculation in cotton,
there is little disposition throughout the produce
markets to purchase goods on borrowed money, as
in the old times. There is a general want of life
and spirit in commerce which is depressingly dull,
though satisfactorily sound. Its refusal to respond
to any invitations seems to render it probable that

the difficulty of the capitalist will still incrusts.
It would be vain at present to speculate upon klas
prospects of the harvest. Where, then, are weto look
for the means of relieving the monetary plethora?
We might embark our surplus fast enough in the
heaps of securities which are being manufactured in
America, but the English public will not so much
as look at them ; on the contrary, they have been
actively intent, for some time past, on realising a
portion of their old American securities which
they have held for years. As regards American
trade, the course of affairs bodes no relief to
the capitalist, but rather an aggravation
of the existing plethora; for although those
persons who are going about prophesying an en-
tire stoppage of our trade with America as a re•
snit of the new fiscal regulations, are merely
drawing upon their strained imaginations, it is
naturally to be expected that interchanges with
America will receive a further check. This means
that the capital of the numerous important houses
connected with America will be to a still further
extent thrown out of mercantile operations,
thereby increasing the glut in Lombard-street.
Amongst the other considerations which tend to
increase, for the time, the abundance of unem-
ployed money, is a vague impression that the con-
test in America will not last long. Even those
who are not at all clear in their ideas as to how
it will end, are foremost in believing that it will
end suddenly " some fine morning." Then a
wide field of speculation is at once opened as to
the effect that would be produced by its termination
upon the whole course of commercial and financial
affairs, and particularly upon the money market.
Conjecture being somewhat at sea upon such wide
and hypothetical matters, the practical conclusion
arrived at is that it is advisable to keep a good
deal of money lying idle, in order to be ready for
all eventualities—that it is better, in fact, to de-
rive a limited return for a time from a large sur-
plus balance than to enter into long engagements,
or invest it in securities of long currency, from
which its subsequent detachment, if required,
might be difficult or costly. This is the reason why
the joint stock banks and discount establishments
find so much money lying about, despite the very
low rates-14 to 12 per cent —now allowed by
them. This is the reason why their deposits, after
being swelled to a high point by the forcing action
of a liberal rate of allowance, do not fall off now
that the attraction has been removed. These
establishments are more likely to turn away depo-
sitors for some time to come than to have to seek
after money. Finally, we have here an explana-
tion why Exchequer Bills, though yielding only
3 per cent. per annum interest, command
1 per cent. premium in the market,
while Console, which offer a larger re-
turn, have been very languid until within
the last few days, and are even now too
low in relation to the value of money, as measured
by the old standards in these matters. Exchequer
Bills are in favour, in spite of all the unpopularity
with which recent Chancellors of the Exchequer
have invested them, because they are a short and
non-speculative investment, from which a holder
may detach his money at any moment, without
risk of heavy fluctuation in prices ; while the
English funds are neglected because they are a
fixed, as distinguished from a floating or termi-
nable, investment. A feeling of mercantile uncer-
tainty and indecision is at the root of the difference
in the public estimation of these two classes of
securities issued by one and the same borrower.
Under present circumstances, it does not seem
likely that the market will be soon relieved of the
superincumbent weight of money through the
medium of loans, public companies, or other
agencies tending to send capital out of the
country ; the accumulation is so large that this
gradual process will probably fail to exercise any
perceptible influence. New projects will doubtless
continue to be announced from week to week, but
no very large transaction seems to be threatened
at the moment.

Allusion has been made recently to a coming
Portuguese Loan for 5,000,000/. of stock, or
2,200,0001. cash, and the prospectus is
now formally issued. Portugal has, of
course, as much right to borrow here as
any other State, for, though her financial
escutcheon has not escaped without tarnish in
past years, she came some time ago to a settle-
ment with her creditors, which they accepted as
satisfactory, and none of them care now to throw a
stone at her. The present loan is but a small
affair, and our money market is in a mood to swal-
low it without feeling it iu the least. A
matter of a couple of millions, spread over a
twelvemonth, is not worth considering in its in-
dividual effect on the money market. The public
have had their appetite for low-priced foreign
stocks sharpened by the profit which has accrued
to them from the Moorish, Turkish, and Egyptian
Loans, and a Portuguese Three per Cent. stock at
44 is not likely to go a-begging in the present
humour of the market. The object of a loan
should always be narrowly scrutinised, and in the
present instance there is the satisfactory assurance
that the money is wanted for the completion of
railway works now in process of construction under
contract. It must be admitted that a State
having a large agricultural area to develop cannot
ask • loan for a more legitimate purpose than
the improvement of the means of communication
and transport.
As having no remote bearing upon the pro-
spects of the money market, re would also point
out that the time is at hand when
a considerable portion of the gold
lately draughted away from us in
payment for the Turkish, Egyptian, and Russian
Loans, will begin to now back. In the natural
course of trade those countries seem to be always
in debt to Great Britain. The movement will
commence first with Turkey, who has now made
the first redemption of her caimh, paying the
holders 40 per cent. in gold out of the proceeds of
the last London loan, and GO per cent in a funded
stock. The gold may be looked for again in
England in the course of a few months, adding to
our superabundance.