The Press.
London, England, 1856-04-05 00:00:00

pne,a Market 40 ditg

FRIDAY EYZNINO.
THE Bank of England return for the week ending
the 29th ult., shows the following changes compared
with that for the week preceding :

Increase in Circulation
Increase in Public Deposits 1,199.977
Decrease in Other Deposits
Decrease iu Government Securities 79,183
Increase in Other Securities
Increase in Bullion . 76,622
Increase in Rest .... ...
Decrease in Reserve

Bullion iu Both Departments
Circulation, including Bank Post
Bills
This compari.on shows several important changes.
The increase in the circulation is satisfactory, but
the power of the Bank with respect to its reserve of
notes has been materially reduced. The diminution
in the Reserve, and the enormous addition to the
amount of private securities, which now exceed
20,000,0001., show the pressure under which the
Bank was placed last week by the demand for money
on account of the loan, and for commercial purposes.
The addition to the Public Deposits is attributable to
the receipt of the loan instalments; and the amount
now standing to the credit of the Government is
sufficient to enable it to meet the dividends due next
week, without calling upon the Bank for temporary
assistance. The Bank appears to have been selling
stock, probably with a view to maintain its reserve at
above 0,000,0001., but it is rather below that amount
now. The bullion shows a moderate increase.

Money has been in active demand, with but a
moderate supply. Last week it was in demand
mainly in consequence of the payment of the loan
instalments ; in the present it has arisen, in a great
measure, from the preparations to meet the commer-
cial bilis falling due today, which were extremely
heavy in all branches of trade. These bills were gene-
rally well met ; if anything, there were fewer sent to
the notaries than for many months past. An impres-
sion appears to prevail in some quarters that we
shall have money cheaper almost immediately, now
that peace has returned, because gold is flowing in
and the exchanges are better. It is highly pro-
bable that money will, to a certain extent, be
cheaper, but not very speedily. There is still
1,500,000/ to be paid on account of the loan, all
of which must be provided in the course of the
present month ; and it must be remembered that
even with the most favorable condition of the
exchanges the amount of bullion in the Bank can
but slowly increase. Allowance, too, must be made
for the caution in making changes in the rates of
discount which the Bank will naturally exercise in
the critical period following a state or war, when en-
terprises are likely to be projected, which if encou-
raged unduly would absorb more capital than can be
spared from the ordinary pursuits of commerce. It
is a duty, therefore, in those who have the power of
fixing the value of money to watch and repress ten-
dencies of this description, and at the same time to
be extremely reserved in the adoption of measures
calculated to stimulate production beyond the natural
demands of trade. No doubt the Bank Directors,
after the pending re-election, will take the whole
subject into formal consideration; but, reascning
upon data accessible to everybody, founded upon
the political demands on the market, now and in
prospect, the imports of gold, the requirements of
commerce, and other circuinstalices which influence
the value of money, it does not seem at all probbble
that the rates can go lower than 54 per cent. for ,h
next four months. It is, indeed, most likely tl
they may remain at six per cent. for the whole of
that period. Next week the Bank may equalise the
rate of discount on two and three months' bills to ix
per cent.; but beyond this the Directors will not ven-
ture to go until their course in the way of further reduc-
tion is perfectly clear. It will be seen from these
considerations that though the existing pressure may
be regarded as essentially temporary, a considerable
period must necessarily elapse before we can expect
discounts to be as low as they were this time last
year.

On the Stock Exchange money has been in good
demand at six per cent. In the early part of the