The Press.
London, England, 1856-03-01 00:00:00

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SATURDAY,
pritet ad Citg Nam,
FRIDAY EVENING.
TEE return of the Bank of England for the week
ending Feb. 23, shows the following changes com-
pared with that for the previous week
Decrease in Circulation £239,917
Decrease in Public Deposits
Increase in Other Deposits
Increase in Government Securities .... 15,100
Increase in Other Securities ..
Increase in Bullion ... 02,898
Decrease in Rest
Increase in Reserve .... . .
Bullion in Both Departments
Circulation, including Bk. Post Bills 19,254,614
This comparison is, upon the whole, more favorable,
in all essential respects, than was anticipated. The
decrease in the Public Deposits is little more than
nominal, and they are still comparatively low. The
deposit of ten per cent. upon the new loan does not
come into the present account.
The Money Market during the week has been
comparatively easy, owing, almost exclusively, to the
return on Monday of the surplus deposits upon the
new loan. On the Stock Exchange the rates paid
for temporary advances have run from four and a
half to five and a half per cent.; but in the Discount
Market there has been no change, notwithstanding
that the supply has been rather in excess of the
demand. '1 he Bank has been dealing rather liberally.
But, considering that in the course of the next few
days a vast amount of commercial bills will fall due
—that during the next fortnight more than 1,700,0001.
of the loan instalments must be paid—and that the
Consol settlement will happen in the course of the
same period,—the prospect of an easy state of things
for any length of time is not very promising. In-
deed, tl.ete is already very serious pressure upon
bankers and their correspondents, in connection
with the engagements of the 4th ; and complaints
are heard that the circulation of the country
is not in proportion to its transactions. Bills, con-
sequently, have to be employed in greater numbers,
and in larger amounts, than would be necessary
under different, circumstances, the discounts of which
almost wholly absorb the profits of the best managed
mercantile undertakings, to say nothing of the con-
tingencies to which substitutes of this nature are
always liable. In short, there is very little prospect
of money being cheap for the next three months;
while it is certain that the Bank cannot take any
step in that direction with a small stock of gold—a
reserve that some months ago would have been cen•
sidered somewhat perilous—and a very moderate
amount of specie imports.
In connection with a sensitive Money Market we
have an increasing home trade, and an amount of
manufacturing production perfectly surprising, if we
did not know that for a long time past stocks have
been allowed to run down to the lowest possible
point. The present activity is mainly caused by the
necessity of replenishing the warehouses for the
spring and early summer trades. There is, more-
over, a large trade doing with India and China in
textile fabrics, and Australian commerce is im-
proving; but, on the other hand, the market: in the
East and about the seat of war have been over-sup-
plied, while we are still in debt to America on account
of the late corn and cotton importations. On the
whole, both the home and foreign trades are sound,
but they leave the barest shade of profit in most
branches. It is from this state of things that we
apprehend disaster, in the event of peace being fol-
lowed—as it is almost sure to be—by a period of
excessive speculation, unless the lessons of prudence
taught some years ago have not been forgotten. Alen
have now so long been suffering from the dwindling
down, and ultimate disappearance, of profits out of
their ordinary transactions, that they will for a time
rush into other undertakings, whatever the hazard,
which appear to promise some better return, only
to become wiser and, it is to be feared, poorer. In-
dividual prudence may do much to avert any con-
siderable disturbance in the general trade of the
country from the existence of a speculative mania;
but the time has come for a word of caution to be
n ow in season.
The Consol Market has fluctuated rather consider-
ably since our last. The closing price of Three per
Cents. last Saturday was 911 to which was an im-
prcvement of one-half upon the preceding day;
owing to the opening of the Conferences in Paris, the
declaration of an armistice, and the general confi-
dence in the restoration of peace, they gradually
improved, until on Tuesday they were done at 92b
which was the highest price of the week. The
market was then affected by large sales to close
•
speculative purchases m ,it was alsoade last weekand
depressed by a considerable fall in the French Three
per Cents., attributable to an analogous movement in
connection with the monthly settlement which takes
place to-day, and to an unexpected suspension of the
sittings of the Conference on Wednesday. T