The Press.
London, England, 1858-08-21 00:00:00

!Tjoneg ratfut anti Citg

FRIDAY EVENING.
THE return of the Bank of England fur the week
ending Wednesday last, the 18th inst., shows the
following changes compared with that for the week
preceding :

Ijr)n eccrreeaassee
ii n n
Public
Circulation
........ tits
,Fivi
Deposits ......
Decrease in Other Deposits lncrease in in Government Securities2°lCit
Decrease in Other Securities
Circulation,lncrease
B
eclrrl
ieeoaan:
nie ie
i nnn
ol
tjuehn Reservel
sletipiounlnedpi
Departments
mts
g Bank Post 17:141:::1°774RU
Bills
This comparison again shows that the business of
Bank in U.scounts and Advances continues to fall t
owing to the lower terms offered by the Lombard-street
houses; for the Private Securities, it will be observed hate
fallen off rather considerably, until they aggregate now;
no more than about 15,000,0001. In order to employ some
portion of its reserve, there being comparatively '
discount or loan transactions, the Bank is adding gradually
to its stock of Public Securities. Meanwhile
Private Deposits are being reduced by withdrri
from public bodies ; but this item is of 1
consequence under existing circumstances. The Put
Deposits continue to enlarge as the quarter progresses,
showing that the revenue is well and cheerfully -
and as a necessary consequence the circulation
undergoing some contraction, which, in the absence t
other means to employ the money, tells upon the amount
of the Reserve. The Bullion has received a satisfactare
addition ; and it now approaches 17,500,0001., with
prospect of a continuous increase for some weeks to come.
Altogether, the position of the Bank is such as to impart
confidence to the trade of the country.
The commercial demand for money is still rather ,
the increase, but it is readily met by the ample supplies
the market, so that hitherto it has caused no change in
rates. They remain at the average given last week of
and-a-half per cent. Although some portion of the demand
has naturally arisen front incidental circumstances—snr'
as for payments connected with the gathering-in of t
harvest, and for the provision which is an ordirary charm'
teristic of trade towards the fall of the year—there can'
no doubt that by far the greatest proportion of the der
has arisen out of the just and legitimate requirements
genuine commerce. It is an obvious fact that there
speculative movement to create a demand for capital.
joint stock undertakings are projected except very few ~
bona-fide and remunerative character. Anything hazar-
dous or involving doubtful results, in the present temp
of capitalists and of mercantile men generally, receives
absolute discouragement, even though the possible results
may appear promising. In this disposition, which is
common to all the commercial classes, it is impossible
to create combinations of sufficient extent to affect V
value of money by speculative projects. It may therein?'
be repeated, with some degree of confidence, thin
existing inquiry, growing as it is, has not arisen, and
arising, from a spirit of doubtful enterprize. Whence
has it arisen ? This question is readily answered. It
arisen from the reviving trade of the country, which
actively occupied in the execution of enormous domestic
orders for almost every description of manufacture. Mi.
of it is also due to an increase of foreign trade, though
this respect there is still room for considerable deie
ment. The American, Brazilian, Canadian, and
trades are not so active as they might be, and have
but on the other hand the trade with India, notwithstandi
some disasters at Calcutta. is extending, and a I
market, almost entirely new, is springing up in that
colonial dependency to which the gold discoveries
Frazer's River are giving so much vitality and energy.
the same time Australia is sending target orders fur.
products; and even China is in same important respects
adding to her trade with us. In point of fact our 'customers at thin moment are ourselves at home and
relatives in the colonies; while contemporaneously
the additional requirements from these quarters
the there irso-
gradual extension of our foreign trade prcper.
such an expansion requires capital for its support.
moderate demand for capital, which is the prevail
feature of the Money Market, is the necessary conseqt
of this expansion. It is most satisfactory to perceive
it has arisen from a cause so natural and so legitur
and it is also satisfactory, for the sake of our commercial
interests, that the terms at which it is supplied are so'
partitively cheap. They cannot be expected to retest
however, in the event of any further material extension
trade, or of a demand for great enterprizea, particularly:
we are now approaching the last quarter in the year, wl,
more money is ordinarily required, and when the return.
from fixed investments are usually less in the aggrellt.2t,
a
than in the preceding quarters. Considerations of
kind induce us to repeat that it is hopeless to expect moue)h
going below the present market rate ;
standing the possibility of a reduction in the ro i
discount in France, the tendency here willprobabi I
the opposite direction. and that, not'