The Press.
London, England, 1857-05-23 00:00:00

Vow pact ad 64 tgittelligtact.

FRIDAY EVENING.
THE return of the Bank of England for the week ending
the 16th inst., shows the following cuanges compared with
that for the week preceding :
Decrease in Circulation X121,11.1
Increase in Public Deposits
Decrease iu Other Deposits
Increase in Government Securities 25,20:3
Decrease in Other Securities
Increase in Bullion
Increase in Rest
Increase in Reserve
Bullion iu Both Departments
Circulation, including Bank Post
Bills
The changes shown in this comparison indicate a stronger
position on the part of the Bank ; but the improvement in
this respect is not equal to that which was expected. The
Bullion has increased only to a small extent, but the
11,2 serve is more satisfactory, for it is 11'2.1171. more than
last week, although the Private Deposits have fallen off
rather largely. The increase in the Public Deposits is
considerable ; some of it is, no doubt, owing to the in.
vestments now making in Exchequer Bills by the Savings.
banks Commissioners.

The Money alarket is in a very anomalous and per-
pl !ling condition. It is in one of those phases which
appear to promise some ease and relaxation in the terms,
bat in which improvement eludes the grasp, and causes a
doubt whether there are any grounds for the assertion
made in Parliament the other day that no pressure is felt,
an I that mercantile enterprise is in a state of prosperity.
We hear of failures, suspensions, and compositions among
Lime of the most important branches of manufacturing
industry, while there is an organised agitation for limiting
the staple productions of Lancashire by one-third, sup
parted by the chief factory-owners, upon the two grounds of
the dearness of raw materials and the high value of money.
We have yet to see the full effect of this movement upon
tie Money Market; but its influence is apparent already
in the diminished bill circulation from that part of the
o wintry which is sent up to London. The Australian
trade, too, is falling off, and there are some branches of
o ir trade with other of our colonial dependencies which
hwe sensibl-, declined in amount. Under these circum-
stinces, the demand for money has not been active in the
present week. For speculative purposes, however, and in
connection with the Stock Exchange, some degree of pees-
sure has been temporarily felt, but the high terms required
f w advances were found too onerous, and hence the parties
closed their engagements, and the usual consequences 101-1
1 iwed in a decline of all classes of securities. The appli-
• ttions at the Bank and in Lombard-street being appre-
o ably reduced from these causes, supplies have grown in
eteess ; but, with fuller reserves, the holders of large
o tpitala have rather tightened than relaxed their conditions
of business. What is the explanation of this anomaly—
of this apparent contradiction of the economical cation
that price is regulated by supply and demand'? To some
extent it will be found in the nature of the advices from
India and China. Those from India bave stimulated a
much larger export of silver than was anticipated, while
large cargoes of tea are coming in from China, whither also
heavy orders for silk have been despatched. It is esti.
mated that, from these causes, the silver exported to India
from the 4th of the present month to the 4th of June will
reach 2,000,00111. in value. Now, much of this silver, not-
withstanding our own stocks, must be drawn from the
Continent and be paid for in gold. Hence the export of
gild to the Continent, in spite of the state of theexchanges,
has recommenced, and the Bank of France resumed
its purchases in this market through the agency of the
leading Hebrew firm. No doubt, the anxieties and micas
taintiea at present felt with regard to the silk crop have
partly led to this resumption of an irregular process; but
i must also be recollected that a great failure has occurred
in Paris, which has materially shaken confidence here in
the stability, financially, of some of the most important
undertakings in that capital. Thus it appears that there
we ample reasons why capitalists here should manifest
caution at the present moment. Supposing the silk crop
to be a partial failure, it would le impossible to prevent
very injurious effects upon the Paris Money Market, and
inked upon all the markets of the Continent; and we in
L indon should suffer in proportion. But as, before the
silk crops can be realised, or their result correctly neer-
tained, there is, as there happens to be at this moment,
undisguised distrust here as to the soundness of things in
Pins, no other policy can be adopted than that of the
utmost prudence and watchfulness in commitments. This
policy will probably create temporary embarrassment in
many different quarters, and even be followed by disaster
to some biasses; but, 011 the whole, it can scarcely fail to
be satisfactory to all whose trade has not been pushed
beyond the boundaries of prudent enterprise and whose
operations are conducted upon leAtimate capital. From
such consideration.' a• these we draw a deduction that the
Money Market is likely for some time longer to present a
variety of anomalies and perplexities, and that the best
policy under existing circumstances is to abstain from all
merely speculative undertakings.
The specie arrivals this week have amounted in value to
about ;00,0001., and the exports, including 751,3101. to
India and China (all of which except 2,12111. was in silver),
to about 770,0001. The 400,0001. gold from St. Petersburg,