The Express.
London, England, 1862-07-14 00:00:00

BIGH.WATIM ATT.ONDON BRIDOL

TUTS Day Mfg , 4b. 10m.
TO-SOL33oif —Mumtaz. 4h. Atimmooft, 4R fu.a.

LONDON, MONDAY, JULY 14.

Tux indications in the Money Market betoken
• renewed plethora. Gold is flowing into the
country from abroad faster than ever. For this
there are several causes, the principal being that,
as before remarked, the balance of trade is still
largely in our favour. Why it is in our favour
may almost be explained by merely glancing at
the position of the cotton trade. We are in the
habit of taking from America cotton to the value
of at least 30,000,0001. or 36,000,000/. a year,
but these payments have been almost entirely
brought to a stop by the extraordinary circum-
stances of the time. The supply lacking from Ame-
rica is not made up from any other quarter, and
the consequence is that the money which usually
goes abroad to buy the material of industry for
our operatives and of profit for our merchants,
manufacturers, brokers, and shipowners—is being
stored up in idleness in the Bank of England. We,
who can find no cotton to buy, are made very
sensible of the causeof the influx of gold,while the
Americans, who have no cotton available to sell,
are made keenly aware of the loss of a commodity
which acts so important a part in adjusting the
trade balance between the two countries. To
us, who really do not want any more
gold, and could perhaps get on better
without any additional accumulation, com-
merce is still awarding more, while from America,
sorely embarrassed for want of a store of the pre-
cious metals adequate to her present enormous
requirements, commerce is taking away even what
little she has.

But there is another consideration which helps
in no small degree to explain why America is
premed upon so severely just now for gold from
abroad. The great body of holders of her securi-
ties in Europe have been seriously disquieted by
the course of her affairs—by the threatened disrup-
tion of the Union, and by the vastness of the
sacrifices which are being made for its restoration.
Investors in American securities thought they
were dealing with a people wedded indissolubly to
the pursuits of peace. They argued that to the
Americans the dollar was everything, and
they saw, as they imagined, • peculiar

. ~T:

security in the bonds end- sharer .d.
' a nation reputed to possess an almost Quaker-like
aversion to war. People who argued thus are now
undeceived. They see that the Americans can
rush to war with as much fervour as any people of
old or modern times, and that in a cause in which
they feel strongly they can make almost unpa-
ralleled sacrifices and fling every restraining con-
sideration to the winds. The creation of vast
masses of Federal Government securities in
aid of this expenditure has been all that
1 was required to determine hundreds of
' holders of American investments to realise, and
realisation has been rendered more prao-
finable by the fact that the Americans retain un-
bounded confidence in themselves and in their
financial ability. The rapid issue of the
'new paper money has even contributed
,to produce an inflation in the stock markets,
raising prices to a point above those current in
Europe. Consequently for • long time every
packet brought to this country large orders to buy
securities to feed the demand in Wall-street. The
views of both parties have thus been met with •
peculiar exactness, for while English and other
' European holders have been anxious to sell, the
Americans have been equally anxious to buy.
The financial effect has been the greater on account
of the excessive amount of American securities
held in Europe. It has been one of America's old
errors to rely too much on the European money
market for the means of executing the works
required for the development of her resources.
Sho wished to go a-head very fast, and, as the rate
of interest on that side of the Atlantic always
ranged at the comparatively high point natural to
young communities, it acted as a bar to much
which the eagerness of the people wished to see
done swiftly. Accordingly, every State, city, and
public company resorted to the European money
market to an extent limited only by its capacity
of absorption, the effect being the creation abroad
of a mass of American " indebtedness" larger
than most of us have any conception of. The
realisation of even a moderate per centage of this
mass of debt would suffice at any time to turn
the exchange and the current of specie in our
favour. The amount of stock which during the
last few months has passed from English to Ame-
rican hands must amount to several millions ster-
ling, and this operation, combined with the inabi-
lity of America to discharge her European liabili-
ties in cotton, fully accounts for the present re-
markable movement in specie.
In so far as the present superabundant supply
of money arises from realisations of American
securities, we may of course without inconvenience
re-invest it in other securities. If we withdraw
money from America, and place it in the bonds of
Turkey or Egypt, the money market may regard
the transaction with indifference, for it amounts
merely to an exchange of investments. But in
so far as our abundance arises from the withdrawal
of money from the cotton business or any other
branch of trade, it behoves us to be very careful
what we do with it. Trade-money has its own special
functions and duties, and is not applicable to those
long investments in which a completely realised
surplus may legitimately be embarked. The
cotton trade will not be stopped for ever, and
when it revives, the money now thrown out of it
must be held ready to enter it again. We stand
at this moment, it is true, with plenty of cash in
hand, but it does not consist of surplus profit, with
which we are free to do as we like ; its rather
capital belonging to our ordinary business, and
certain to be again required by it. This distinc-
tion must be carefully observed, for forgetfulness
of it might lead to much mischief. Should the
country be blessed with • good harvest, there
will probably be a considerable surplus of
capital available for investment in the
new securities which are now being so freely
created, and without trenching on the loose trade-
money. On the other hand, should the harvest
be a bad one, the large importations of foreign
grain that will be required will sweep away • very
considerable portion of our surplus, and not only
cause the influx of gold from America to cease,
but probably turn the balance in her favour. As
long as there is any chance, therefore, of our sur- '
plus funds meeting with employment in this way,
it is very desirable that we should not entangle
ourselves with any extensive commitments. As
soon as we have arrived at a definite idea
of the yield of the crops, we shall
know better what we are about, and what engage-
ments we may safely enter into. It is chiefly on
account of the caution enjoined at this critical pe-
riod of the year, especially considering the un-
settled aspect of the weather for some time past,
that not a few persons of sober judgment regret
the action just taken by the Bank of England, a
redaction in the rate of discount to so low a point
u 2} per cent. having naturally a tendency to
stimulate speculation. Hitherto moderation has
been observed, and it is satisfactory to remark
that the public have known how to
pause while digesting the mass of stock
which they have already taken. We have now
met the bulk of the demands in connexion with
the Moorish, Turkish, Egyptian, and Russian
Loans, and there are indications that a fresh
batch of applicants will soon present themselves.
It is a peculiarity of the period that there is • de-
cided appetite for new low-priced foreign stocks.
The great success and permanent profit attending
the three first-named of these loans are due to the
care which was taken to allow that fair margin to
the subscriber without which, as • mere matter
of business, no foreign loan ought to be encou-
raged in this country. The blight that continues to
rest upon the Russian Loan, which remains at • dis-
count, while all the others are at a premium,
further illustrates the error of • selfish and narrow
policy in these matters. It is said that the next
borrowing proposals will come from Venezuela and
Portugal, and that Egypt is so much encouraged
by her recent essay that she intends to ask for •
little more. Each of these proposals will of
course be weighed upon its merits, but the broad
and satisfactory feature is that there is no present
prospect of our entering into transactions of undue
magnitude. Making allowance for the peculiarity
of the causes which have led to the present
plethora, and for the importance of the
contingencies dependent upon the harvest,
it may be inferred that our superabund-
ance is more apparent than real, and that there
is more ground for caution than may be gathered
from • mere consideration either of the Bank so-
' counts or of the action of the Bank Directors,
anxious as they are for grist for their proprietors'
mill. With our system of currency, an excess or
deficiency of two or three millions of bullion, no
matter how produced—whether representing
realised profits, which is one thing, or merely
temporarily unemployed trade-balances, which are
quite another thing—exercises an exaggerated
effect on the whole course of financial affairs. A
time is at hand when, if experience goes for any-
thing, JOHN BULL will be tempted to fool his
money away in • host of channels : it may be
opportune, therefore, to remind him that in con-
tingencies by no means remote he may want a
good deal of it himself.

. •
^ '• • frOUtie
•
OSBORNE. JuLT 12.
The Queen, accompanied by Princess Louise and
Prince Arthur, drove out yesterday.
Lady C. Biti:rington and Colonel the Hon. A. Harding*
were in attendance. _ _

SUNDAY, JULY 13.

The Queen drove out yesterday, accompanied by Primer
Helene. Lady A. Bruce and Lord Charles Fitzßoy were in
attendance.

The Prince of Wales, Prince Alfred, and Prince Arthur
rode on horseback, attended by Colonel the Hon. A. Her-
ding. and Major Elphinstate.
Hat Majesty, the Prince of Wales, Prince Alfred, Prince
Arthur, Prince Leopold, Prince s@ Helena, and Primate
Louise attended Divine Service at Osborne this morning.
The Rev. Dr. Stanley officiated.

A Cabinet Council was held on Saturday at the
official residence of the First Lord of the Treasury
in Downing-street. The ministers present were
Viscount Palmerston, the Lord Chancellor, Earl
Granville, the Duke of Argyll, Sir George Grey,
Earl Russell, the Duke of Newcastle, Sir G. C.
Lewis, Sir Charles Wood, the Chancellor of the
Exchequer, the Duke of Somerset, the Right Hon.
T. Milner Gibson, the Right Hon. Edward Card-
well, Lord Stanley of Alderley, and the Right
Hon. 0. P. Villiers.

Despatches were received on Saturday at the Colonial-
office from the Lard High Commissioner et the lonian

Wands. Despatches were sent to the governors of the
North Americana Provinces, Bermuda, and to the Lord High
Commissioner of the lonian Islands.

We (Aberdeen Herald) are authorised to state
tint, in consequeoce of the Prince Consort's death, and the
sojourn, during August, of her Majesty at Balmoral, there
will be no Braemar Gathering held this year.

Her Royal Highness the Duchess of Cambridge
entertained a select tide et dinner on Saturday evening at
her residence in St. James's Palace.

The Duke and Duchess of Northumberland left
Northumberland House on Saturday for Sion House, Isle-
worth, to pans a few weeks before proceeding to the north
for the autumn.

The Duke and Duchess of Hamilton received a
distinguished circle at dinner last evening, at their residence
In ArUnites-street, Piccadilly. Their Royal Highness=
the Duke of Cambridge, the Duchess of Cambridge, sad
Princess Mary, and the Graad Duchess of Ifeeklesbug-
Strelitz, were among the gouts. A select company assem-
bled after dinner.

The Earl and Countess of Derby entertained the
Date of Rutland, the Fart and Counts, of Chesterfield,
the Earl and Countess of Darnley, Viscount and Viscountess
Grey de Wilton, Lord and Lady Cecilia Hingham, Lord and
Lady Raglan, Lord Schomberg Kerr, the Right Hon. Sir
W. H. Jolliffe and Miss Jonah', Col. the lion. W. P. and
Lady Emma Talbot, Sr Hugh M'C►lmoat and Lady Cairns,
Mr. Lealie, Mr. Wilbraham, kr., at dinner on Saturday,
at their mansion in St. Janus's-square.

Lord and Lady HathertOn have left Thomas's
Betel, Berkelerequsre, for Dover, en route for Germany.
A marriage is arranged to take place between the
Hon. Seymour Grey-Fgerton. aeoond and younger son of
the Earl of Wilton, and Mite Laura Enroll, only daughter
of Mr. Wm. Romall, the gooountant-GeneraL

His Excellency the Ambassador of France and
the Counts de Flahanit had an assembly, at the residence
of the Embassy, Albert-gate Hone, on Saturday evening,
which was most fashionably attended. The Grand Duke of
Saxe-Weimer, Prince and her Royal Highness Pawns
Hermann of Sme-Weimar, and Prince and Prisms Edward
of Sims-Weimar, honoured the filliliOlS with their preeence.
Previous to the assembly his excellency and her ladyship
received the following at dinner :—The Duchene of Wel-
lington, the Earl Granville, the Earl and Countess of
Clarendon and Lady Constance Villiers, Viscount St.
Aleph, Lard Harris, Lord Lyons, Viscount and Viscountess
Clifden, H. Bartholdi, H. de Lutteroth, H. Thouvenel,
Mr. and Miss Stanley, Stc.

His Highness the Viceroy of Egypt, attended by
the Hon. Charles Murray, paid visite oe Saturday to the
Lord Chamberlain, the Muter of the Home, the Duke of
Northumberland, and the Marquis of Westminster.

The Penang Argus records a visit of Lady Frank-
lin to the island. Immediately on her arrival she pro-
ceeded to see the governor and to visit the localities of in-
terest in the neighbourhood.

The polling for Montgomeryshire, vacant by the
death of the late member, took place on Saturday, and re-
sulted in the returnot Mr. Wynn, the conservative candi-
date, by a majority of 307.

A great "demonstration," as it is called, which is
to attend the laying at Dublin of the foundation stone of the
Catholic University on Sunday, the 30th Mat., engages the
attention of the ultnunontane party at Dublin to the ex
clusion of every other topic. The plan is to have a proces-
sion of trades through the streets of Dublin, the operatives
to wear green rosettes, and to be headed by their clergy.
After a solemn high mass at the cathedral, Marlborough-
street, the men-20,000 it is rid—are to walk to the spot
selected, about two miles and a half distant in the suburbs,
sad there to be addressed by Archbishop Hughes, of New
York, and Monsigoor Dupsaloup.

A singular C4BO, which raises a question of interna-
tional law, came before Boon Fitzgerald, at Dublin, on Satur-
day, sitting in chamber. In the cant of Thompson v. Knox,
an action on a promissory note made at Charleston, South
Carolina, and payable at the People's Beak, in the Federal
States, Mr. Henderson moved, on behalf of defendant, for
leave to file a special defence under the following circuit-
dame :—Pl►intiff was a citizen of the Confederate Staten
and defendant of the Federal States, but now residing in
Ireland. Since the breaking out of hostilities between
the Northern and Southern States, a law had been passed
by the Federal government by which all citizens of the
Federal States were prohibited from paying any debts they
owed to any citizen of the Confederate States, on pain of
being treated u a traitor. The law further directed that is
such cues the debtor was to pay the amount into the trea-
sury of the United States, and this the defendant alleged
had been done by his partner in America. Counsel stated
that his client would be liable to be hanged if be paid the
debt. The court granted leave to file the defense.

The Prince °alit:in is to give a morning concert
at the Hertz Rooms, Paris, this week, in aidof the sufferers
by the fire at St. Petersburg. He will himself lead the
band, and the music is to consist entirely of Russian oom-
poutions.

On Saturday evening the bands of the Gen-
darmeneead Zonaves of the Imperial Guard gave a concert
at the St. James's Hall for the benefit of the French chari-
table aasociatioo in King William-street. The playing was
throughout admirable, and honoured with immense applause.
The concert was given so suddenly that the London public
were fairly taken by surprise. Hence the scanty attendance.
The Society for the Acclimatisation of Animals
and Vegetables dined together on Saturday, Lord Stanley in
the chair. Several of the dishes at table illustrated the
objects of the association, being foreign, many of them
Chinese, delicacies, though it did not appear that all of
' them were grateful to English palates. Birds-nest soup
and sea-slug soup, and " Kangaroo steamer," and soup of
deers' sinews, in which our Chinese, Australian, and
Siamese fellows delight, were introduced. His lordship,
in proposing " Prosperity to the Association," explained
its object., humorously observing that they did not cam
• farthing for animals that could only be shown in •
menagerie, and plants that would only thrive in • hot-
house ; their purpose wee not curiosity, nor even science—
they wanted practically to benefit the country by increas-
ing the food of the people, and a plant or an animal that
would not thrive on the ordinary conditions of English life
and cultivation was of no use to them.

Aooording to the Him:too Patriot some changes
affecting the judges of the new high courts in India will be
made. Their salary is to be 5,000 t, the practice of knight•
ins them is to be discontinued, except as regards the chief
justice, sad the period for pension will be extended to
twei•e yearn.

It is said that the Maharajah of Puttiala has
withdrawn himself from the active duties of government,
and has entrusted thorn to his minister, Pundit lihrodeen.
Jeypore, the capital of the maharajah's dominions, is the
largest and riche et city in Itajpootana, far sumassiagAjmere,
the chief city, in the number and elegance of its public
works, and the number sad wealth of its inhabitaata The
principal street, or chowk, ha the city, "is built throughout
of marble, exquisitely cut, and meet uniformly and aldL
fully laid." Lammas sums have been spurt by the govern-
ment to beautify and improve the city, whose grandeur is
very considerably enhanced by the splendid prdess and
oorntrybousea which hem the suburbs.