The Press.
London, England, 1857-01-31 00:00:00

Diane Blarket anb ttitg ntriligenct.

FRIDAY EVENING.
THE return of the Bank of England for the week ending
the 24th inst. shows the following ciAnges compared with
that for the week preceding ;
Decrease in Circulation
Increase in Public Deposits
Decrease in Other Deposits ,000,9'2,13;
Increase in Public Securities
Decrease in Other Securities
Increase in Bullion
Decrease in Rest
Increase in Reserve
Bullion iu Both Departments
Circulation, including Bank Post

19,939,801
This comparison shows the present return to be more
satisfactory than was anticipated, and it affords an explana-
tion of the policy of the Bank Directors in not advancing
the rate of discount yesterday, as was anticipated in many
quarters. The Reserve is strengthened to the extent of
nearly half a million, while the Private Securities have run
off to the amount of more than 750,0001. That a very
active demand prevailed for money out of doors, at the J oin t-
stock Banks and the Lombard•street houses, is however
proved by the heavy falling off in the Private Deposits,
The Public Deposits are taking an upward turn now that
the dividend payments are conzlnded. The Bullion shows
a trifling increase, notwithstanding that nearly '200,0001.
was sent away last week for transmission to the Continent
in payment for silver; this is owing to the return of coin
from Ireland and from Constantinople.
The improvement in the Money Market described in our
last, proved, as we anticipated, only temporary ; it has not
only been wholly lost, but constant apprehensions have
prevailed both of rates advancing and of the supplies being
restricted. Under these circumstances we have not a very
satisfactory report to make. Rates upon the best bills
have averaged fully six per cent., and, at the present mc-
ment, the demand is so active that there is really a scarcity
of capital even for the most legitimate commercial enter-
prises. Gratifying as it must be to see the external signs
of progress and prosperity, we have serious apprehensions
of the financial results if capital becomes, as it threatens,
one or two per cent. dearer. High-priced money may be
consistent with active trade, but the profit is not so widely
diffused as we could wish to see it; and hence with an
enormously progressive entutnerce we may expect loud com-
plaints at its small results to individual producers. Needy,
struggling men in vain contend against high discounts on
the one hand, and against the cash payments offered Irt
the merchant capitalist upon the other; so that among tl.s
class we look for great disasters in the course of the present
year. This is undoubtedly the present tendency of things,
and we cannot clearly see any means of averting it, except
by a fall in discounts to somewhere about four or four and
a half per cent. However, leaving these considerations for
the present, we may mention that the current week has
been productive of considerable einbarrabbment in commer•

116

cial circles. owing to the uncertainty that has prevailed as
to the action of tne Bank in regulating the value of money.
The stock of bullion has for many weeks now been
; during the last four or live days it has further fallen
0.1; and at the time this is written there ii no imme-
diate prospect of a cessation of the drain. The only means
passes:wit by the Bank to arrest the outflow is by advancing
the rate of discount. That some step of this character
would he taken has been daily expected. Although the
Bank has made no change, from the reasons disclosed
i I the above comparison, the market remitine in tins
p ,iition, and the greatest uncertainty still prevails as to the
f iture. The Directors may, any day, resort to further re-
strictive measures, and it is known from recent practice
that they will not hesitate to adopt them the moment the
nee,sity tithes for it. On the Stuck Exchange a good de-
mind has prevailed in connection with the Railway and
Foreign settlements at six and a half and seven per cent.
We have no arrivals of specie to report. Some amounts
have come from the United States in transits for the
Cmatinent, especially France, but none have been retained
here, unless it be some silver from the north of Europe
w.titing for transmission to India and China. Several
vessels with Australian gold on board are about due, but
there are no signs of them at present, and the large amount
of Mexican silver, estimated at about b 00,0001., is fully ex-
pected by the West India mail steamer that is due to-
morrow. On the other hand there has been again a con-
s derabte drain upon the Bank for gold to send to the Con-
t.nent in r...yment for silver. hi the present week nearly
Liq 01101. has been withdrawn for this purpose. It is pre-
sumed that the return of coin from Ireland has been large
e-tough to neutridise the drain from this cause; but no
dependence can be placed upon a merely internal move-
ment of this sort producing any permanent effect. Nothing
but large imports, combined with a relaxation in the
'Minolta' demand, can now retain the stock of bullion
in the Batik at a satisfactory amount.
Peri, let. ers mention the probability of n Government
loan for 4,0tki,000i., but it is scarcely credited on this side.
It is now almost settled that the capital of the Bank of
France will be increased, but to what amount is not known.
Money is in great demand in Paris and in the principal
manufacturing towns.

The perplexities and uncertainties which have prevailed
in the Money Market have induced most of the dealers in
English Securities, especially those who operated fur the
rise, to close their transactions, and wait for some favour-
able change. As a necessary consequence sales have pre-
ponderated, and a fall of fully one half per cent. has taken
p 1 ice in Consols. The depression has been of daily oc-
c inence, and the decline gradual, proving that it has arisen
not from a feeling of alarm, much less of panic, but solely
from the adverse state of the Money Meeket. Last Friday
Consols closed, for the account on the sth of February. at
9.11 to ; yesterday at 931 to }. The business of the
week has been very languid. Indeed, we seldom realm-
bnr a time when less has been doing either for investment
or upon speculation. The next account day is the sth
March, and the rates for carrying over are aoont one half
per cent. To day the market was again dull, and it closed
at 9:1 to I, being a further decline of

Railway Shares have been deals in to a very moderate
extent, business being adversely influenced by the depres-
sion of Cahoots, and by the operations connected with the
settlement now closing. In some cases of un exceptional
character a slight improvement has been realised, but
genet ally quotations may be reported as flatter than last
week.

Foreign Shares hare not attracted much attention.
Turkish Six per Cents. are fully one per cent. lower.
In Joint•atock Bank, Miscellaneous, and Mining Shares
nothing of importance has occurred.
Exchequer Bills have declined ss. Last Friday they
we c quoted at dis. to 'Ss. prem. To day they We:d
dealt in at 7s. to 2s. dis.

Great commotion has been caused among the holders of
American Securities by a judicial declaration in the Cali.
furnian courts that the State debt of that territory is on.
oonstiiutional and void. This debt amounts to (MAW.,
and a considerable portion of it is held in this country.
Some hope is felt that the State Legislature may interfere,
and by a legal act secure the rights of the public creditors.
In the meantime no slight dismay has been created, and
the credit of some of the other States iu the Union has
been damaged.
It appears from an official circular issued by the Crystal
Palace Company that the frauds of llobsen, their late
transfer clerk, amounted to 10,8961. in respect of pre.
ference shares. 10,001. in respect of ordinary shares, at
their par value, and 9141. in respect of receipts for season
tickets. The shared of the company are to be converted
into stock.

The Bank of England have granted a bonus of ten per
cent. on the salaries of the clerks in that establishment
for the I ast year.

The leading houses in the wine trade have inemoralised
the Treasury to grim the privilege of bottling foreign
wines in bond. An effort is also being wade by the Levant
houses to obtain a reduction of the duty upon currants to
Ins. per ton.

The dividend for the past halt•year npon the South
Western Railway Company's Stock is to be at the rate
of six and a half per cent. per annum. With the previous
dividend this makes six per cent for 11.;)0.
A Tuscan railway, to connect the Lombardo-Venetian
network with those proposed to be constructed to Ancona,
Civitia Vecchia, Rome, and Naples. is announced. It is
to be called the F.-nlinand Railway. The capital is
90:1,0001., of which 200,0001. is offered in London in 20/.
shares. The concession is for ninety-nine years, with a
guarantee equal to five per cent, from the Government,
with whom any surplus above eight per cent. is to be
diviced. A contract has been entered into for the con-
struction W.' the line for 732,0001.; and the caution money,
48,000, has been deposited.