The Press.
London, England, 1857-09-12 00:00:00

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FRIDAY EVENING.
THE return of the Bank of E nglsnd for the week
ending the sth instant shows the following
changes compared with that for the week preced-
ing :

Decrease in Circulation
Increase in Public Deposits
Decrease in Other Deposits
Increase in Securities
Decrease in Bullion
Increase in Rest
Increase in Reserve
Bullion hi Both Departments 11,491,313
Circulation, including Bank Post
Bills 20,018,172
The Bullion is below eleven millions and a half this
week, and we anticipate that a further reduction will
be shown by the next return. The addition to the
Securities, which is wholly in those that are of
a private character, raises that item to 18,351,0001.,
and this item we expect will show a further augmen-
tation next week. The Public Deposits con-
tinue to increase, while the Private continue to de-
crease, and there is reason to believe that most of
the sums withdrawn belong to the East India Com-
pany. The Reserve shows a trifling improvement.
The Monthly Debtor and Creditor Account of the
Bank of France, made up to yesterday, the 10th
inst., was published in the Moniteur this morning.
It is more favourable than that for the previous
month, inasmuch as there is an increase of 113,0001.
to the stock of bullion, which now amounts to
9,919,1701. The circulation, owing probably to
diminished activity in trade, and in Bourse transac-
tions, is only 21,715,8321., being 2,866,9181. less than
last month.
Money has been in active demand since our last,
owing to preparations in many branches of manu-
facture for the winter trade, and also in some degree
to the state of the bullion market, the operations in
which are now of increasing importance. To these
causes must be added the fact that the supply in the
hands of the public has been absorbed to a great
extent by the purchase of stock and shares, and that
it is unlikely it can be materially increased until after
the dispersion of the October dividends. Under
these circumstances rates have been generally main-
tained at the Bank minimum of five and a half per
cent., and a good deal of money has been put into
circulation on those terms. In some cases, during
the early part of the week, the Lombard-street
houses charged rather less ; but the average was
fully equal to the Bank rate. In this state of the
market the expectation which partially prevailed last
week of a reduction to five per cent. has been entirely
dissipated. With respect to the future there is a
considerable degree of sensitiveness on the part of
capitalists. The fact of the Governor-General of
India having stopped all expenditure upon publio
works except those for military purposes indicates
that the insurrection will absorb more than the
revenue of the country, even if it could be collected.
And as the expenditure is rapidly growing, and will
become heavier along with every successive arrival
of troops, and as the sources of revenue are to a
great extent dried up by the insurrection, it is incon-
testable that, at no very distant day, a requisition for
financial assistance must be made upon the supreme
authorities in this country ; in other words, a large
loan must certainly be impending. Capitalists foresee
the contingency, and it is not surprising that they
should in anticipation endeavour to turn the current
of the market into a direction likely to secure
the most profitable terms when the loan is
announced. The Money Market is obviously in
the first stage of transition to this end. Its con-
dition in the meantime may be occasionally modi-
fied by special circumstances ; but its general tendency;
so long as this Indian business hangs over it, cannot to
arrested. Not only therefore do we anticipate dis-
counts not going lower, but we look for considerable
tightness. It cannot be otherwise when Government
is, or is expected to be, a competitor for supplies in
the open market with merchants, and traders, and
manufacturers.
The arrivals of bullion this week have been upon
a very limited scale. They have rather exceeded
100,0001. On the other hand, the exports have
amounted to 170,0001., the greater part of which
have gone to Brazil. The Bank has 'peen a pur-
chaser of gold to the extent of 19,0001., but has
parted with quite as much for the Continent, whence
we continue to receive considerable amounts of silver.
On the whole, the operations of the week have
diminished, but to no great extent, our stock of
gold.
The continental exchanges are not very favourable
to this country; but they do not exercise much
influence now either for or against us.
Dulness continues to be the prevailing feature of
business. All descriptions of securities are affected
by it. To some extent this is attributed to the usua
absence of dealers at this time of the year; but the