The Press.
London, England, 1856-11-29 00:00:00

lone 'Oulu! attb or,itg '4lllelligeart.

FRIDAY EVENING.
THE return of the Bank of England for the week ending
the 22nd inst. shows the following ciaiuges compared with
that for the week preceding :
Decrease in Circulation ..
Increase in Public Deposits
Decrease in Other Deposits
Decrease in Government Securities 3.002
Decrease in other Securities
Increase in Bullion
Increase in Reserve
_

Bullion in Both Departments
Circulation, including Bank Post
Bills
This comparison shows that the Bank is gradually in-
creasing its strength. The most favorable features of it
are the additions to the Bullion and the Reserve, and the
diminution of the Private Securities. The Bullion is still
under 10,000,004)1., but the next return will bring it above
that amount, while the reserve of notes is nearly four
millions and a quarter, being the highest amount at which
it has stood since the Ist of October, when the rate of dis-
count was unexpectedly increased from four and a half to
five per cent. The Private Securities are 18,232,0001.;
but we anticipate an increase rather than a diminution in
this item in the next return. The Government Deposits
are creeping up. They will help in gradually improving
the position of the Bank up to the time for the payment of
the Government dividends, as about this period they gene-
rally increase in a greater ratio than the advances. On the
whole there does not appear, from the present in conjunc-
tion with the last return, to be any reason for doubting
that the worst has been passed, and that money must be-
come cheaper in the course of a very short time, unless
some overpowering necessity arises to make it expedient to
maintain existing rates.

For a great part of the week the comparative ease pro-
duced in the Money Market by the heavy arrivals of gold
from Australia, stated in our last, led to a partial expecta-
tion that the Bank would reduce the present high rate of
discount. And for some days the Directors were appealed
to with uncommon urgency by the leading authority to
take this step, even though they might not feel quite con-
fident of its policy, in order, not to relieve commerce
alone, but to show that the Bank Charter Act could give
relief to the market as instantaneously as it could screw it
up. The Directors met as usual yesterday ; and, we
presume, on consideration of the whole circumstances
affecting the market, they declined to make any change in
the rate. They took the practical view of the question,
and left popular opinion to its course as to the virtues of
the Bank Charter Act. They are, consequently, exposed
to the taunt that as they apparently advanced the rate on
short bills from six to seven per cent, when they had a
favorable account before them, so, with like perversity,
they have refused to reduce when they might with advan-
tage to the public and with popularity to the law. We must
leave others to fight out this battle. e shall be content
with simply announcing that rates are unchanged, that the
Money Market is certainly easier, and that, it' things main-
tain their present aspect, we may, as stated above, expect a
reduction either next Thursday or almost immediately after-
wards. But, although the Directors have not reduced the
rate of discount, they have made one change of a very
acceptable character. They have intimated their intention
of resuming the practice of making advances upon stock
during the shutting of the books for transfer next month,
at the rate of seven per cent. As this practice was sus-
pended about two months ago, when the bullion was sub-
jected to a rapid drain for France, its renewal is taken
as an indication that the dein) from that quarter has not
only ceased, but that there is little or no expectation of its
revival. It will be remembered that the agents of the
Bank of France here were in the habit of borrowing money
upon the sect.rity of stock from one department, and of
buying gold from another with the money so borrowed.
The Bank was thus male the cause and the instrument of
its own weakness; but the resolution to cease advancing
upon stock greatly interfered with the practice, and it
finally answered the purpose, though at the expense of
great inconvenience to parties who, having nothing to do
with bullion operations, were accustomed to rely upon the
Bank for temporary aid in emergencies. So far, then,
things are upon the way to their natural order. But it
will be some time before we can rationally expect to have
money at five per cent. We may see it at six per cent,
probably next week; but there must be a tried and tin-
doubted improvement, especially upon the Continent,
before the lower rate can be conceded.

We said last week that the Money Market is not yet
righted. That observation will partially apply to buss
current week. Undoubtedly more ease has been extr,
rienced, but it has been owing to the natural desire of ilia
great discounting houses to employ their reserves. As
they are giving six per -
abundance of it; and af
pose upon trade a posit
discount as possible,
paper has found eager

quility have been dOnl
per cent. under the
cases the private

1

10115 C, w cuipivy UMIF reserves. AS
per cent. for money, they have had
id as the eu'-rent rates of discount itn-
ositive necessity to have as little under
le, it is nut surprising that the best
ger takers. Indeed, bills of the first
roe in Lombard-street at fully a half
Bank minimum, and in some other
Ablishments have been doing business