The Press.
London, England, 1857-10-10 00:00:00

THE PRESS, OCTOBER 102 1857.

aggregate to no less than 21,835,813/. One million
of the increase is due to the advance made to the
East India Company; but, making allowance for that
it appears that the ordinary demand upon the Bank'
absorbed more than 1,100,0001. A large portion of
this sum was required, of course, for commercial
purposes, but no doubt some of it has been employed
in taking advantage of the crisis in the United States,
and of the state of the money markets upon the
Continent. The effect of these operations has been
to diminish the Reserve very largely, until the
unemployed notes have fallen to 4,600,0001., and the
Bullion to little more than ten and a half millions.
The Bank, however, sold no stock to assist in meeting
the demand. The addition to the Private Deposits
is presumed to represent the balance of the loan to
the East India Company, and the diminution in the
Public Deposits arises from the payment of salaries
at the end of the quat ter. This comparison is by no

means of a satisfactory character.
The monthly debtor and creditor account of the
Bank of France was published in the illoniteur this
morning. It also proves very unfavourable. The
stock of bullion lies fallen to 9,022,6061., being
896,5641. less than in the previous return, although
10,1411. was expended in premiums upon its par•
chase. The circulation has increased to 24,214,0121.,
or 2,498,1801. in excess of the amount in September,
a large portion of the additorial issue having been
employed in advances on public securities, shares,
and bullion, upon all of which there is an increase.
The private securities have augmented to 21,348,4731.,
being 1,03.2,5871. additional—a strong proof of the
active demand for money for commercial purposes.
The principal event in the Money Market has
been an advance of one-half per cent. in the terms
of discount made by the Bank Directors at their
weekly court yesterday. The rate was raised from
five and a half per cent., to which it was reduced on
the 16th July, to six per cent., and all the banking
and discount houses have advanced in proportion.
Money is thus dearer, as we anticipated, and there
are some grounds for assuming that we may have
even higher rates before the end of the year. The
present advance would perhaps have been delayed
for a week or two longer, if the demand for gold from
the Continent had not suddenly become extremely
active. In three days nearly 250,0001. were taken
out of the Bank for export, and during those three
days it transpired that the East India Company had
borrowed a million from the Bank, upon the security
of their bonds, while, at the same time, the require-
ments for commercial purposes were extremely
large ; so that the Bank sustained an exces-
sive amount of pressure both upon its Reserve
and upon its stock of bullion, and the application of
the screw became indispensable. In addition to
these causes, the financial and commercial crisis in
the United States has assumed vast proportions.
Money there is worth from twenty-four to thirty per
cent. ; shares of all descriptions have fallen to nomi-
nal prices ; and merchandise is unsaleable. The
value of money in New York being so disproportioned
to its value here, it was to be expected that capitalists
would withdraw large amounts from this market and
employ them in the States. Railway stock and other
securities have, in tact, been already largely sold
with this On the other hand, our exports have
naturally diminished, while from the other side pro-
duce of various descriptions is being shipped for sale
here on almost any terms. The general effect of this
state of things must be to draw gold from this side.
That is the tendency at the present moment. It is
chiefly from these circumstances the impression has
arisen that rates may go higher than six per cent.;
and if their operation continues during the remain-
der of October, it is almost certain that this anticipa-
tion will be realised. On this point everything
depends upon the advices from America, in connec-
tion with the state of the continental money markets,
and the next letters from India. The loan of
1,000,0001. to the East India Company has of course
withdrawn that amount from employment in com-
merce: and though a large portion of it has been or
will be expended in payments for transport, and
so will come back again, the whole may be set down
as entirely unproductive, to be followed by other and
larger expenditures, until the turning point has been
reached. Then the movements in the continental
money markets are such as to render capital very
dear there. From all these circumstances, as well
as from the activity of our own trade, it is obvious
that every shilling of available capital will find ready
employment, and that with a demand of such
urgency and of such proportions, we are not
unlikely to see a further advance in the terms
for loans and discounts.
The Bullion movements of the week have been
very moderate, but in the present state of financial
affairs upon the Continent, and in the United States,
very significant. Since our last about 300,0001. has
been withdrawn from the Bank of England for export,
principally to the Continent. The imports have
consisted of 385,3631. from Australia, and 9,121/.
from the coast of Africa. But of these imports, the
whole, except 100,0001. in Australian sovereigns, has