The Press.
London, England, 1857-08-22 00:00:00

pug ffiarket an tits laitliigenct.

FIID►T EVINII4O.
Tait return of the Bank of England for the week ending
the 13th inst., shows the following chauges compared with
that for the week preceding:—

Decrease in Circulation .
Decrease in Public Deposits
Increase is Other Deposits
Decrease in Securities 473,638
Decrease in Bullion
Increase in Rest
Increase in Reserve ..
Bullion iu Both Departments .... 11,239,906
Circulation, including Hank Post
Bills ..

This comparison bears evidence of a reduced demand for
money in the increase of Private Deposits, and the de-
crease of securities ; and as a necessary consequence the
Reserve has enlarged, the stock of unemployed notes being
now 5,6te4,7401. The Bullion, however, shows a falling
off. The reduction in the amount held by the Bank has
been continuous for the last two or three weeks ; and there
is little probability of any change in this respect for some
wedge to come, seeing that the Australian vessels now
ovisios are still delayed, and that France is a very active
competitor for the purchase of all that arrives from other
quarters. The falling off in the amount of Public Deposits
is no doubt owing to payments in redemption of the Danish
Sound Dues.

The Money Market has been easy all the week—the
terms having been under the Bank minimum throughout,
and the supplies, on the whole, remarkably good. Yet,
along with this state of things, there is a very appreciable
degree of apprehension as to the future, arising from the
gloom which hangs over our relations with India, for it is
universally felt that, although the whole charges of
restoring order and compensating sufferers for the destruc-
tion of property will ultimately be imposed upon India,
the provision for these purposes must substantially be
made here. The present rate of expenditure for all pur-
poses is not far short of 1,000,0001. per week. This
enormous outlay must be felt before long. It cannot go
on without deranging the ordinary employment of capital
in the purposes of commerce • and, as a great proportion of
the expenditure will be unproductive, trade in some shape
or other, either by the price or the scarcity of capital, or
by both, arising from this application of it, must sustain
considerable inconvenience. A conviction -of this sort is,
therefore, hanging over the market, creating apprehensions
of future stringency and fears for commercial profits.
But, as just stated, the present supplies are ample, and
rates are, for the most part, just under the Bank mini-
mum. Much of this is owing to a falling off in the de-
mand, and to temporary circumstances connected with the
dispersion of the dividends of the various railway and
joint-stock companies. Commerce is unquestionably less
active than for some time past, for it must be observed
that there is no reduction, but rather the reverse, in the
prices of the raw materials for the bulk of our manufac-
tures, such as cotton, wool, iron, and so on, while the
Australianl trade has greatly fallen off, and now the Indian
is gradually being contracted. The manufacturers of
Lancashire have not discontinued the working of short
time. The necessary consequence has been to limit the
requirements for advances, and hence the quietness of the
demand at the present mcment. On the other hand, the
supplies for the time have been increased by the payment
of 1,250,0001 by the British Government to the agents of
the Danish Government for the redemption of the Sound
Dues. Pending the repayment of certain portions of the
Danish debt, this sum is being employed in the Money
Market. The supplies, also, are further increased, as just
intimated, by a great number of dividend payments usual
at this period. Thus it happens we have larger supplies.
It may be asked, then, why the rate of discount is 'main-
tained at five and a half per cent.? The answer is that no
confidence is felt in the market remaining in this condi-
tion. The Bank, considering the heavy movements of
bullion now going on and the absence of supplies from
Australia, will not risk a diminution iu its stook by lower-
ing the value of money, the more especially as the rate of
interest is advancing in Hamburg, Berlin, and other cities
in Europe, and that preparations are being made by the
Austrian Government for resuming specie payments on
the Ist of January next. Under these circumstances, to
which must be added the prospect of a loan on account of
India, it is impossible to regard the present ease as other-
wise than temporary.
The specie movements of the week have been important.
A sum of 1,095,0111. has been sent to India and China,
the whole of which, except 16,3471., was in silver, and the
other exports have amounted to aout 100,0001. So that
the total export has been 1,195,000. The imports have
amounted to 500,0001. in value. A large part of the im-
ports, however, have been purchased for France. The
Bank has lost about 16,0031. taken to pay for silver, and
purchased 4.0001. of the gold lately sent from St. Peters-
burg. A very large amount of silver has in the course of
the week been received from France and the northern parts
of Europe, all of which will be sent to India and China by
the next packet.

The Continental Exchanges have been tolerably firm and
in favour of this country, but to-day they gave way a littte.
During the week a moderate advance took place in
English Securities of all descriptions, attributable to the
good supplies of money and the investments of the public.
But, subsequently, when the real state of the Money
Market became understood, there was a reaction, and the
general result is that the market is now rather lower than
it r, as this day week.
Consols, which left off last Friday at 911 to improved
on Tuesday and Wednesday to 911 to I. Then a destining
tendency was manifested, and without any great prepon-
derance of sales quotations gradually declined until at the
close yesterday they stood at 91 to 1. To-day they opened
at 91 to and closed at 90j to 91, after a dull and languid
market.
With some exceptions. Foreign Stocks are lower.
Turkish Six per Cents have declined five-eighths. The
market has been without animation.
Railway, Shares have gone through the same mutations
as Consols in the course of the week, the geoeral result
now being that there is no material alteration upon the
prices of last Friday. Caledonians have fluctuated about
two per cent., being declined, in the first instance, through
rumours of a reduced dividend, but recovered afterwards
when the report proved unfounded. Sheffields have also
fluctuated, and have attained rather a better price. Great
Westerns are about one-half per cent. better. Canadian
and French shares depressed throughout. To-day there
was no change of importance.
In Joint-stock Banking Shares the most important
feature has been a decline in Ottomans, which are now