The Press.
London, England, 1856-11-01 00:00:00

Dou Tadat an titer

FRIDAY EVKNINO•
THE return of the Bank of England for the week ending
the With Oct. shows the following ciattiges compared with
that for the week preceding :

Decrease in Circulation ..
Increase in Public Deposits
Decrease in Other Deposits
Decrease in Government Securities 360.051
Decrease in other Securities
Decrease in Bullion
Increase in Rest

Increase in Reserve

559,704

Bullion iu Both Departments
Circulation, including Bank Post

Bills
The Bullion in the Bank is now at a lower point than it has
stood for some years, being not much more than 9,500,0001;
but the return, as a whole, is more satisfactory than that
of last week, inasmuch as it shows the position of the
Bank itself to be strengthened. The Reserve is a full
half-million more, but to obtain this improvement the
Bank has sold more than 350,0001 of its securities,
besides absorbing the addition to the Public Deposits. It
now appears that the Bank has been placing stock upon
the market, and this accounts for the full supply which
was rather suddenly found by certain parties i❑ the early
part of last week. The falling off in the Private Securities
shows the effect of the last turn of the screw ; and it will
be observed, that the scarcity of money has caused a dimi-
nution in the Private Deposits, which are now but a mere
fraction above 10,000,0001. The Bullion in the next
return will, it is expezted, again show a falling off; but if
the Reserve continues to increase, it will cause little
anxiety, though it is not at all clear at present how the
drain is to be neutralised so long as the Bank fails to
secure any portion of the arrivals.
The Money Market is certainly no better, but rathsr
worse of the two than it was last week. The demand hae
been more active, with less disposition to meet it, while
uniformly higher terms have been exacted even upon bills
of the highest character. Lombard-street is above the
Bank in its average charges, and is quite as restrictive in
its policy with respect to advances. People who have
floating balances to spare are unquestionably deriving a
good profit from this state of things, for they can obtain not
less than five per cent. for their money for any period they
may lend it to the bankers and discount brokers, while the
latter, by charging six and seveu and in some cases even
nine per cent., are clearing large returns without much
risk. The wonder is how the trade of the country can sup-
port direct and intermediate deductions of such amounts
and yet be advantageously carried on. There must, un-
questionably, be a good deal of suffering somewhere.
Symptoms of it are already appearing among certain
classes of manufacturers; and we should not be surprised
to hear soon, if the present season of embarrassment does
not shortly pass away, of several suspensions. No doubt
a great deal of the demand in the current week has arisen
from preparations to meet the commercial acceptances
falling due on the 4th, next Tuesday. It that time is got
over tolerably easy, there will be less ground for anxiety
during November, as we believe that for some months past
there has been a great contraction both of home and foreign
engagements, produced by the high price of money which
has ruled during October. On the other hand the reduced
production threatened in t'.►e factores of Lancashire and
Yorkshire, owing partly to the heavy charges for discounts
and the increasing dearness of raw materials, will lessen
the amount of employment in the winter ; and we fear the
consequences will be seriously felt by the working classes.
But, putting aside for the time the dismal anticipations
which have come up from the manufacturing districts
during the last four or five days, it may be asked whether
there is really any prospect of money becoming easier and
more plentiful? We fear there is little or none for some
time to come. The Bank of England is not likely to be
in a position to reduce the rate of discount for a long in-
definite period. The financial and monetary crisis in Paris
is not, we believe, at its worst, while the movements in the
corn, cotton, iron, and some other great markets, are such
as to render even legitimate enterprise very precarious
and uncer:ain in its results. The short terms for which
only money is now lent may to some extent encourage reck-
less speculators who have little to lose ; but they deter
the prudent merchant of substantial means, and he conse•
quently refrains from otherwise justifiable operations.
Besides we have, in terrorein, a vast scheme for the abstrac-
tion of 40,000,0001. of capital, at the rate of about
4,000,0001. per annum for ten years, to make railways in
Russia. This scheme alone is suff►cient to justify the
Bank of Eng,land in keeping the screw tight, for the mass
of this capital, if the scheme floats at all, must come from
England. With a foreign drain upon us at the rate of
1,000,000/. per quarter, or 250,0001. per week, and the
ordinary demands of oar regular foreign and home trade,
it would be impossible to reduce discounts. We dare say
that political bad feeling towards Russia has something to
do with the disfavour with which the scheme is viewed by

1053

a portion of the press ; with that we, in this place, have
nothing to do. We only say that it cannot be floated in
this country, under present circumstances, without causing
a most serious financial derangement and, ultimately, a
monetary panic.

The exchanges are still against this country. France
and the Continent are consequently taking not only all the
gold which arrives, but 60,0001. nes gone out of the Bank
since we last wrote; while the drain of silver for Jndia and
China is unabated. The specie imports of the week have
been about 160,0001. The James Baines, now almost due,
is expected to bring 690,0001. from Melbourne ; and the
West India packet, due to-morrow, will bring a consider-
able amount in silver. Arrivals of this sort may possibly
divert the drain upon the Bank for a time ; but our Paris
letters lead us to believe that the run upon the Bank of
France for gold, for such it substantially is, has drained
that establishment of fully 200,0001. more than it has re-
ceived. Under such circumstances the contracts to pur-
chase gold at any price cannot be withdrawn, and we must
continue to feel the effects in the diminishing stock of the
Bank of England.
English Securities continue to bear up with extraordi-
nary elasticity against the discouragement of the Money
Market. Whilst every one acquainted with the circum-
stances that usually influence prices has been anticipating
reduced quotations, Consols have remained steady, and
completely recovered the downward steps which they
have occasionally made. This anomaly is explained by
the continuance of money purchases by the public for the
investment of their surplus dividends and savings—pur-
chases small individually, but vast in the aggregate, and
from their number calculated to sustain the confidence of a
sensitive market. To-day it was pubiicly stated by an
eminent authority that the public have derived a gri at
portion of the money they have invested in the funds lately
from their deposits in the joint-stock banks, and that the
distrust originally created by the failure of the Royal
British Bank has been the prime motive for the change.
We believe this explanation to be substantially correct.
Last Friday they left off at 921 to 1. More than once
they have been at 921 to 1, and for the greater part of
the week they have been stationary at 921 to I. Yester-
day they attained at the final close to 921 to 1. To-day
they opened at 921 to 1 for Nov. 6, and closed at 921 to 1,
having realised an advance of 1. The public continued
their money purchases, and merely neutralised Effectually
the uneasy sensations created by the leading journal,
implying that we may not only expect a Caffre war, bat
another brush with Russia. A report that the James Baines
had arrived sent prices up to 921 buyers ; but they went
back upon it being ascertained that the rumour was pre-
mature. The last price was 921 to 1.
Exchequer Bills have gone down to par.

The settlement in Consols takes Owe next Thursday.
The next account day is December the 4th. The preset.'
price tor that day is 831 to %.
Railway Shares have, so far as the amount of bud ors
is concerned, been adversely affected by the stt lement of
the account ; but the market has been strong and improv-
ing in respect to prices. It is, indeed, in a sound and
healthy condition ; and from the fact of so little stock
being placed for sale, with money so scarce and
bare, we infer that the railway property of the country is
held by substantial persons—persons who are able to bear
both loses and the apprehension of losses to a greater
extent than is commonly supposed. At all events holders,
whoever they may be, have not been greatly alarmed by
the prospects of the general money market. To-day the
improvement continued, particularly among the heavy
stocks.

Foreign Shares have generally been flat. Turkish
Securities, particularly the Six per Cents., have fluctuated,
hut they have nearly maintained the prices of this day
week. To•day they improved about 305., leaving off at
91i to 92.
Joint stock Bank and Miscellaneous Shares have been
toletably firm, but less attention than usual has been paid
to these securities in the current week.
Messrs. Fox, Henderson, and Co., have announced their
suspension owing to serious losses from heavy foreign con-
tracts, particularly by the construction of the Zealand
Railway. The total debts are stated to be about 320,0001.,
of which about one half are secured. A meeting of the
creditors is to be held at Birmingham on Friday next,
when a statement of the assets and liabilities, with propo-
sitions from the firm, will be submitted for consideration.
The committee of the Stock Exchange a few days ago
passed a resolution, subject to confirmation next Monday,
that the shares of the Crystal Palace Company should not
be quoted in the official lists in consequence of the
directors haring declared several transfers void which
they had previously registered as correct. The directors
have, however, since published an explanatory letter. in
which they state that the refusal to admit the va idity
of certain shares was not intended to deny their ntti•
mate liability, and that, in accordance with the opinions
of counsel, they had determined to recognise them with-
out question. In consequence of this intimation it is
probable that the committee of the Stock Exchange will
withdraw their resolution. It is announced that all the
shares in the Crystal Palace Company are to be changed
into stock. _ _

The Oriental Bank Corporation have announced that
the half•yearly dividend, at the rate of tea per cent. pea
annum, will be payable, free of income tax, on the let of
December.

An attempt to sell by auction the iron ships of the
General Screw Navigation Company at Lloyd's, on Wel-
- entirely failed. There was not a single offer for
any of the vessels.
The Board of Trade reports for the
months ending September 30, are
essential respects. The Provincial
wore desponding character than for

he month, and the Dins
again favorable in all
Trade reports are of a
• some weeks peat.