The Press.
London, England, 1856-09-13 00:00:00

long alarket anb itg

FRIDAY EVIIFING.
Tax return of the Bank of England for the week ending
the 6th inst. shows the following changes compared with
that for the week preceding:—

Decrease in Circulation ..

Increase in Public Deposits
Decrease in Other Deposits
Increase in Securities 481,790
Decrease in Bullion
Increase in Rest
Decrease in Reserve
Bullion iu Both Departments
Circulation, including Rank Post
Bills
This comparison has certainly an unfavorable ohs.
racter, but we do not consider it one that need have ex-
cited so much uneasiness in the City as appeared to
prevail during a great part of this day. The Bullion is
still above 12,000,000 k, while the Reserve is more than
0,ii00,0001., and it is probable that the busi-
ness of the current week has not altered their
relative proportions to any material extent. The
Bank has not been selling stock to keep up the re-
serve, for the Government Securities remain at the same
amount as last week, and from this circumstance we infer
that the directors have felt no anxiety with regard to the
notes in the till, the diminution in which since the pre-
vioas return is only a fraction more than 42,0001. We
have grave donbts whether, under all the circumstances,
the directors williadvance the rates of discount next Thurs-
day, if the next return presents, as we anticipate it will,
much the same features. Besides, we rather think they
will scarcely be prepared to raise the value of money just
at a moment when one of the largest, as well as the last,
instalment of the loan has to be paid. But of course, if
the continental demand for gold makes a suddenly dis-
agreeable inroad upon the stock of bullion, they
mast take measures for its protection by advancing the
rates. IVe, however, do not think this is likely to be the
case. The Government Deposits now amount to 0,087,0681.
On Thursday next they will be increased by 1,0(10,0001.,
and the Chancellor of the Exchequer will be in a good
Position, even then, to pay the October dividends, with

THE PRESS.

some weeks to spare for additional receipts from current
revenue.

The weather has been all that could be desired for the
conclusion of the harvest; and we believe we may now
congratulate our readers upon the whole of it having been
secured in excellent condition. In many districts there
are patches yet on the ground, but all is cut. They are,
however, exceptions caused by the want of labour rather than
of energy; but a few days will see them conaigns'd to the
stack or the granary. We are still without reliable reports
as to the actual amount of the yield ; but a careful colla-
tion of such as are published, with others from private
sources, satisfies as that, as far as present evidence goes,
the produce of )850 is considerably above the average.
The quality is various; but all the reports, both public
and private, concur in describing it to be affected more or
less by the weather. The weather for the last fortnight
has been fine, wittllt dry, invigorating atmosphere; conse-
quently, we have ft son to anticipate that the quality has
not been impaired. With some exceptions, we believe it
may on the whole be pronounced unexceptional. Under
these circumstances the market for Public Securities has
ceased to be a " weather market." Neither the harvest
nor the weather now influence values. The fluctuations
in the price of corn, ordinaiity caused by variations in the
supply and derdand, will alone hereafter act upon the
Money l'ilarket. Meanwhile, all the corn markets in the
country alining, and with them the prospect of high
prices, althisigh Mark-lane showed a little reaction to-day.
The Money Market has not been in a satisfactory posi-
tion during the week. There has been a constant heavy
demand for manufacturing purposes, caused in some
degree by winter stocks being prepared earlier than usual
this year, as well as au extremely active inquiry from
general merchants engaged in various export trades. In
fact, we are told that the amount of mercantile paper afloat
at the present moment is absolutely unprecedented. In
addition to the pressure from the ordinary trade of the
country, apprehensions are felt by leading capitalists
and financiers of the ultimate results of the continued flow
of gold to the Continent. This drain regularly absorbs
the bulk of every arrival, and at present there is not much
prospect of its cessation or even of its diminution. Up to
yesterday a strong impression was abroad that, in order to
protect its own stock of bullion and to discourage the ex-
port by operating upon the exchanges, the Bank directors
would advance the rates of discount from 41 to 5 per cent.
This opinion, however, was not realised. Still it produced
consequences upon the Money Market, temporarily at least,
almost as serious as if the change had actually been made.
Under these circumstances, it is not surprising that the
market has been generally unsatisfactory. Nor can we
safely assume that there will be any immediate change for
the better. The rates of interest have been increased
upon the Continent, ostensibly with the view of
preventing the egress of silver to this country. So
long as silver is wanted silver will be had, in spite
of all arbitrary regulations to the contrary ; a little
more gold may be paid for it, but come it will some
way or other. The worst effect, as far as this country is
concerned, will be that the export of gold will be greater.
This is an important element in the case just now. Then
we have large calls upon us in order to pay the final in-
stalment of 1,000,0001. due on the loan next Thursday,
with the incidence of considerable settlements in the Stock
Exchange in railway and foreign securities. Thus, along
with an extraordinary commercial demand, we have several
adjuncts of a character to involve serious pressure fora
time, the combined effects of which are not likely to be
modified until the payment of the October dividends affords
relief, by setting between 8,000,0001. and 4,000,0001. at
liberty. But this aid is nearly a month distant from us.
In the meantime there is no alternative but to make up
our minds to, and be prepared for, a continuance and
probably for an increase of the existing pressure. If, how-
ever, the Bank continues to receive moderate supplies of
gold from the balances of the imports left over after satis-
fying the continental demand, as it 'has done in the
present week, and they amount to anything like a respec-
table aggregate, we may, as intimated above, rely upon the
unwillingness of the court of directors to impose further
burdens upon the trade of the country by raising the rate
of discount.

The imports of specie daring the week are under
-450,0001. Probably 300,0001. of this amount has been
secured for the Continent ; and in addition the reported
export has been between 50,0001. and 60,0001. The gold
product of Australia is, according to the latest accounts,
largely upon the increase.
A considerable fall has taken place in Consols since this
day week, principally in consequence of the unsettled
state of the Money Market, assisted by the want of busi-
ness and the arrangement of the monthly account, which
was effected on Wednesday. The last price for the Sep-
tember account was 943 to 1, being a decline of f since
the previous Friday, and a total fall during the month of
13 pet cent. For the Bth October the opening price was
05. Last night it was 941 to 3, showing a renewed and
heavy decline due exclusively to the causes just referred
to. This morning the opening price was 041 to I.
Unfavorable anticipations with respect to the nature of the
Bank return prevailed the whole day, and they depressed
prices, without the chance of recovery, until they fell to 64
to 3. This was the closing quotation. The fall conse-
quently was fully three-eighth per cent., and the market
left off flat and heavy.
Notwithstanding the pressure for money, and the
reduced value of Public Securities, Exchequer Bills con-
tinue at a premium of 14s. to 17s.
The Foreign Market has been much depressed, but quo-
tations have not given way to the same extent as Consols,
unless it be in Buenos Ayres stock, the fall in which,
owing to special causes, has been from ten to twelve per
cent. Turkish stocks are one per cent. lower than this
day week. Russian and some others, though weaker,
have not presented any material change.

Railways generally are from one to two per cent. lower
than this day week, notwithstanding excellent traffics.
There is, however, but little disposition on the part of the
public to invest at the present moment ; and the general
tone of the market has, from the same causes that have
caused the decline in Consols, been uniformly depressed.
The failure of the Royal British Bank has depreciated
the quotations of all the new joint-stock banks, and even
the established concerns have barely maintained last week's
prices.
Miscellaneous Shares have been dull all the week, with a
heavy market and a preponderance of sales.
The dissentient shareholders in the London and Paris
Bank have appointed a committee to nnnf,•r with the direc-
tors with a view to wind up the undelL.L..ing without com•
mencing business, the success of which under present
circumstances would be extremely doubtful.