The Press.
London, England, 1856-08-02 00:00:00

Dontg Varha 4nitileigtatt.

FRIDAY EVINING.
THE return of the Bank of England for the week
ending the 26th ulc. shows the following changes
compared with that for the week preceding :

Decrease in Circulation ..
Increase in Public Deposits
Decrease in Other Deposits
Decrease in Government Securities
Decrease in Other Securities
Increase in Bullion
Increase in Rest
Increase in Reserve .
Bullion iu Both Departments
Circulation, including Bank Post

Bills
21,323,637
This comparison is, on the whole, of a favorable
character. As between the Government and the
Bank it will be perceived that the amount of the
advances made on the security of Deficiency Bills
bus been reduced by the payment of rather more
than the whole of the last instalment upon the loan,
which was twenty per cent., or 1,000,000/., and that
whilst the Government has thus been reducing its
temporary liabilities it has also increased its balances
in the hands of the Bank by more than 600,0001.
Tho public balances now stand at nearly 4,000,0001.,
this, too, at a moment when the whcle of the
dividends have been paid. We anticipate a further
reduction in the Government securities next week,
and a proportionate addition to the Bank's reserve.
The Bullion shows a respectable increase, consider-
ing the demand that has arisen from the Continent,
in conjunction with the extended circulation usual st
this period of the year in the rural districts. The
reserve shows rather less increase than we antic:-
paled. Still it is large ; and as the notes and coin
approach an aggregate of nearly 6,500,0001., this item
is also becoming more satisfactory. The present
return, however, coupled with the general aspect of
the one', Market, does not lead us to expect a
reduction in the minimum rate of discount, at least
for the present.
When we last wrote money was easy, with some
prospect of a further reduction in its value at no dis-
tant period. The banking and discount establishments
were increasing their reserves by daily deposits left
on call ; and, altogether, though the business of this
day week awakened some suspicious that a change
might be anticipated, few persons, even among the

AuckusT 2, 1856.

most experienced, were prepared for one of so sudden
a character as that which has actually occurred.
Bates are fully one-half per cent. higher in the open
market than they were last week ; and, as a neces-
sary consequence, the Bank is receiving applications
for discounts. The cause of this altered state of
things is commonly supposed to be rather deep ; and
many persons believe that its operation will endure
for a considerable period to come, even though
both Europe and America be blessed with abundant
harvests, and Australia and California continue their
hitherto unfailing supplies of gold. We cannot
accept this extreme view. We think that the present
state of the Money Market is incidental and tempo-
rary, and that a few weeks may see a return of ease
possibly as sudden as the change which has now oc-
curred. In the first place it is hardly credible, with
harvests throughout Europe such as the present
glorious weather promises, that we shall have to pay,
in cash at least, for much corn, or that our popula-
tion will have to eat dear bread. We shall therefore,
upon this assumption, retain large supplies of bullion
which would otherwise be sent abroad. In the next
place the transmission of specie to the Continent,
which is the commonly assigned cause, in a com•
mercial sense, of money having become dearer here,
cannot continue at its present rate much longer. The
demand is already showing signs of approaching
satisfaction; while great as it has been it has not
during the last three weeks absorbed all that has ar-
rived. We have, in fact, as much gold, if not more, in
the country than we had a month ago, notwithstanding
that the stock in the Bank has fallen off, while at
this moment we are expecting heavy amounts both
from Australia and the Pacific. These considera-
tions lead to the inference that our supplies are far
more likely to increase than to diminish, and that
money can scarcely be expected to be worth more
than four per cent., if so much. What, then, is the
cause of the apprehensions prevailing during the
week, and of the undoubted absorption of so much of
the specie that has just arrived ? The continental
demand has arisen from the extension of industrial
and speculative enterprises in France, Germany, and
the north of Europe. To some extent it is also
owing to the drain of silver for India and China,
which is gradually forcing the adoption of a gold
currency on the Continent, especially in France, and
to an indirect and partial resumption of cash pay-
ments in some parts of the Austrian dominions ;
while the political condition of Spain and Italy is
certainly encouraging the population of those coun •
tries t,) hoard. The combination of these causes is
the most obvious and intelligible explanation of the
present state of feeling in this market. It will be
admitted that they are temporary in their nature,
and that, with progressive imports of specie, a sound
and increasing trade, cheap food, and general con-
fidence, they cannot produce any permanent effect
upon the commercial value of money in this country.
Such, at least, is our view of the case; and wa know
that it is extensively shared by many persons whose
position in the City entitles their opinions to respect
and confidence.

The specie imports during the week have amounted
to nearly 937,000/. The exports atthe outside have not
exceeded 400,0001. But on Monday next the steamer
from Southampton will carry about 000,0001., nearly
all in silver, for India and China.
Although business has been exceedingly languid
upon the Stock Exchange, the value of Public Secu
cities has not varied since last Friday more than I
per cent.; they have been uniformly steady. Last
Friday, Consols left off at 951 to I for account, and
to day at 95i to j. ,The principal transactions of
the week have been for money. The account closes
next Thursday. It is expected to prove very light.
The next account is fixed for the 10th September,
for which the closing price to-day was 96 to I.
Owing to the better demand for money having
brought sellers into the market, the premium upon
Exchequer Bills is 3s. lower than last Friday.
Railway Shares have been in extremely moderate
demand. The transactions of the week have been
affected by the arrangements for the settlement,
which was brought to a close yesterday. Stock even-
tually proved rather scarce, particularly in some of
the heavier descriptions. On the whole, the best
prices of last week have been fairly maintained, and
the feeling as to the future is generally good, and it
would be better if the Money Market were less un-
tattled.

Foreign Securities continue to be tolerably well
supported. The principal transactions have been in
Turkish Six per Cents., which have fluctuated to
some extent, but are now steady.
Joint-stock Bank and Miscellaneous Shares have
been less active than last week, but neither have pre-
sented any features worth notice.
The trade and manufacturing reports received
during the week are again favorable. Employment
is general ; but here and there we hear complaints of
profits being less than was expected, from an in-
creased production.
The Electric Telegraph Company have declared
a dividend for the half-year at the rate of six per
cent, per annum.