The Press.
London, England, 1856-12-13 00:00:00

gloneg larl►et anb ditg

FRIDAT EVENING.
Tux return of the Bank of England for the week ending
the #itli inst. shows the following ci.anges compared with
that for the week preceding :
Decrease in Circulation
Increase in Public Deposits
Decrease in Other Deposits
Increase in Government Securities.
Decrease in Other Securities
Increase in Bullion
Increase in Rest

X 274,543
400,722
2:3,624
186,000
148,014
74,801
10,212

Increase in Reserve
Bullion in Both Departments
Circulation, including Bank Post
Bills
The result of this comparison is, that the position of
the Bank, both with regard to its own resources and
its general relation to the public, is improving. It
is favorable enough, in conjunction with the current re-
ceipt of gold referred to below, and the further expected
arrivals during the next ten days, to persuade us that the
time is not far distant—it may be very early—when a fur-
titer reduction in the rate of discount will be made. The
addition to the Bullion is very satisfactory, knowing, as we
do, the amounts abstracted from the Bank to pay for
silver ; and it will be observed that the aggregate is gra-
dually creeping up to a considerable sum. It is, indeed,
already higher than in the corresponding week last year.
The Reserve is still more rapidly enlarging. Meanwhile,
the Bank is increasing its securities and re lucing its
liabilities ; so that, on the whole, the present return is one
which rather encourages the hope of money being a little
cheaper before the end of the year, unless external circum-
stances arise to render the maintenance of the existing
rates prudent and desirable.
A supply of gold from Australia to the unexpectedly
large amount of 380,0001. has produced a great effect upon
the Money Market in the present week. With a very
active demand it has imparted a sense of ease to it which
was wanting before the amount of the arrival was known.
The demand which has arisen and still exists has nut been
of an exclusively commercial character. Much of it has
arisen and is still owing to the necessity of providing large
revenue payments, and consequently some of the great
wholesale houses in nearly every branch of foreign trade
have felt a considerable degree of pressure. At the same
time the commercial inquiry has been active, for foreign
ventures requiring large capital were, perhaps, never
more active ; and, in addition, the settlements usual at
this period of the year are causing many houses to in-
crease their bankers' balances to an amount that would
probably not be credited were an estimate made. Most
of the money so accumulating will be released early in
January; but in the meantime the sums so locked up,
though not actually withdrawn from general circulation,
inasmuch as most of the banks have been rather freely
discounting long-dated bills, have sensibly embarrassed
some dep trtments of trade. Had it not been, therefore, for
the arrival of the True Briton it is probable that more in-
convenience would have been felt than has actually
been experienced. That, however, imparted a con-
siderable degree of confidence to the market, be-
cause the Batik obtained the greater portion of the
supplies, while it is tolerably certain that there will be one,
if not two, further arrivals of some magnitude before the
January dividends are payable. The inquiry for money
to-day has been moderate. The demand from country
bankers is understood to be particularly heavy. Most of it,
however, will tlow back in due time, and meanwhile it is
gratifying to observe that the pressure is well understood
to have arisen, for the most part, from circumstances inci-
dental to the season, and from the requirements of a
legitimately extending trade. Indeed, we do not hear of
any contemplated speculations in commerce not likely to
prove reproluctive, though there is some danger of the
Australian and Indian trades being overdone.
In the course of the week a sort of impression prevailed
in some quarters that the Directors of the Bank of Eng-
land would, at their weekly court yesterday, reduce the
rate of discount to six per cent. This impression had
never any other foundation than a vague idea, emanating
from the fact of the last Bank return being of a favorable
character, and from the amount of gold brought by the
True Brilun, that the Bank would probably suffer in its
discount business by the competition of the Lombard-
meet houses, sow that the rates in Hamburg and one or

THE PRESS.

two other places have been lowered. The Bank, however,
is necessarily obliged to take a larger view of its posi-
tion than that arising out of a selfish consideration for its
own profits in a weekly amount of 30 ),0001. or 400,000/.
discounts. To make money suddenly cheap here, while
the Bank of France is in its present unsettled state (for it
is still unsettled) would give the French market the advan-
tage of offering better terms for the temporary employment
of capital than could be afforded here, and so induce a
scarcity truly artificial. The Bank, therefore, acted '
wisely in waiting a little longer to see whether the im-
provement now being caused upon the Continent by the
cessation of the demand for silver, and by the necessity for
limiting merely speculative operations can be consolidated.
Besides, it is an error to assume that there is competition
between the Bank and the discount-houses for discounts
at the present time. Of course, both sides are anxious to
find profitable employment for their reserves ; and this
both are enabled to do by the extent of the demand for
money—a demand that has increased, is increasing, and will
increase by the development and extension of commerce.
Money must be much more plentiful than it is before
simple competition for its employment can result in a fall in
price. In fact, it is doubtful whether trade would remain
at its present expansion if discounts were cheaper.
It is beginning to be discovered that high dis-
counts are not inconsistent with increasing commerce
or with moderate profits: and if further experience con-
firms the impressions that are beginning to make way on
this subject, it is clear that the desire to find employment
for money by unnecessarily cheapening it might lead to a
considerable degree of evil. However, we have no time
or room to discuss abstract questions. We only point out
the indications of the market, leaving others to theorise.
But we certainly must repeat that competition to obtain
even the very best discounts is not at the present time a
feature of the Money Market.
The exchanges remain without material alterat ion, and
this is another circumstance which has naturally had some
effect upon the Directcrs of the Bank. To-day, however,
they were generally better.
The specie arrivals of the week have amounted to very
nearly 500,0001. The exact amount is 490,4001. The ex-
ports have included 130,0001. in sovereigns to the Brazils,
and about ZO,OOOl. to the Continent. Of the gold brought
by the Trate Briton the Bank has obtained 18J,000/. ; and
little or none has gone out of the country in payment for
silver. As the reduction in the rate of exchange made by
the East India Company is causing payments to be made
here, and bills remitted, the demand fur silver has almost
ceased. Gold, consequently, is less needed to send to the
Continent for purchases of bars and five-franc pieces. So
that there is some reason to anticipate that the drain so
long caused by these payments will pass away, or at least
assume harmless proportions, especially as large receipts
are expected by the next West India mail steamer from
Mexico and the South American States. On the whole,
therefore, there is some prospect of our being enabled to
retain a large portion of the imports during the remainder
of the year, and probably during the whole of January ; but
we doubt whether the continental demand will be so modi-
fied as to justify an expectation that our stocks will be
permanently much larger than they are at present.
The monthly return of the Bank of France was pub.
lished this morning, and it is of a more favorable charac-
ter, as a whole, than we had reason to expect in our last.
The bullion has increased 1,370,0001., and it now amounts
to nearly 8,000,0001. The premiums paid in the purchase
of gold and silver have fallen to 17,323/. against rather
more than 25,0001. in the previous month ; and they now
amount for the whole of the hallyear to 127,0001., or
rather more. The Bank has, too, restricted its discounts
and advances more than 1,000,0001. during the month;
and altogether it is returning to a sound and satisfactory
position.
The stock of specie in the National Bank at Vienna now
stands at 8,515,0001., showing an increase of 3,420,0001.
since the beginning of the year.
Consols, which closed last Friday at 91 to ex div., for
acconr*, have scarcely varied from that price the whole of
the week. The lowest quotation has been 931 to I, and
business generally has been upon the smallest possible
scale. At this period of the year this is always the case.
But although business has been languid, the tone generally
has been one of considerable firmness; for whenever quo-
tations have shown a tendency to decline, purchasers were
ready to come in. To-day they opened at 93i to 94, and
closed at 9lfto j rather flat, in consequence a declit•
of 55c. in the French Three per Cents.
Exchequer Bills remain firm, at a premium of ss.
to Bs.

11 iilway Shares are about the same as last week. If
anything, there is rather more dullness, but stock has not
been pressed for sale. The market, indeed, has presented
no features worth notice, except it be that Caledonians
experienced rather a sudden rise, which was subsequently
lost to a partial extent. French lines steady.
Foreign Securities are weaker, but without any change
of importance.

Banking and Miscellaneous Shares have been generally
dull, with a very moderate business.
Some forgeries have been discovered in the scrip of the
Oriental Gas Company. The amount involved is at pre-
sent very small, but the circumstances have naturally
caused a good deal of observation iu the present state of
public feeling on these matters. Further proceedings
have taken place in the Redpath frauds, but the prelimi-
nary investigations are not yet completed in the police
courts. In the meantime the auditors of the Great
Northern Railway Company have commenced a strict
overhaul of the whole capital account. This was nothing
less than was expected from the directors, and it is to be
hoped that the inquiry will be completed before the half-
yearly meeting of the proprietors in February next.
A further dividend of tid. in the pound has been declared
under the joint estate of &ratan, Paul, and Bates; one of

SATURDAY)

2q. in the pound under the separate estate of Strahan ; and
one of bd. under the separate estate of Paul.
Several of the shareholders of the !loyal British Bank
have petitioned the Court of Bankruptcy under the private
arrangement clauses to obtain protection for themselves
and property.
A new town is about to be erected on the Mutlah, near
one of the termini of the proposed Calcutta and South
Eastern Railway.
The Trade Reports from the provinces denote increased
activity.