The Press.
London, England, 1857-04-04 00:00:00

THE WAR IN CHINA.

LETTERS from Hong Kong to 17th Feb. make no
mention of any material change in the state of
affair. The China Mail of the 15th Feb. has the
following statement with respect to the intentions of
the Chinese Government:—

We understand that a paper has been forwarded hither
from Canton as well as from the North, purporting to be a
decree of the Emperor. It directs the high authorities of
the coast provinces to be on the a err hut m t to alarm
the people ; etpresses connilence ii Yeh', lo,owledge of
the barbarian, and his coisequent, capacity to settle this

344

affair with the British. Ych is not to be over•severe, but
they are not to be met halfway, lest a concession in the
present cape lead to a demand for other concessions.

Accounts received from Canton state that under
Yell's direction the ploughshare had traversed the
site of the late factories, the commissioner sowing
the ground with salt.
Several junk engagements had taken place, with-
out much result on either side. The Chinese, also,
had been nearly successful in burning H.M.S. Corpus
by flre.rafts. Reinforcements of troops from Sings,
pore had reached Hong Kong, where all was now
ranquil. The gunboats sent out with H.M.S. High-
flyer had not yet arrived.
Allure, the baker, charge:l with poisoning the
bread, had been tried by jury and "Acquitted." He
was, however, under arrest on suspicion, and would
be deported from the island.
At Whampua the new town has been razed, the
piles of the various docks burned, the large granite
dock blasted in and destroyed, and the caisson per-
forated with shot holes.

At Shangahai and the other ports a certain un-
ea,iness prevailed among foreigners, but no outbreak
bad occurred.

Oarket anb Citg ~ttttlio~e rt.

FRIDAY EVENING.
Tax return of the Bank of England for the week ending
the 28th ult., shows the following cialuges compared with
that for the week preceding :
Increase in Circulation
Increase in Public Deposits
Increase in Other Deposits
Increase in Private Securities
Decrease in Bullion
Increase in Rest
Decrease in Reserve
Bullion in Both Departments .... 9,987,559
Circulation, including Bank Post
Bills
The facts shown by this comparison are extremely signifi-
cant, and the return altogether is the most important that
has appeared in the present year. The first item that
challenges attention is the great addition to the Private
Securities. which brings them up to the almost unprece-
dented sum of 21,212,7521., and establishes the existence
of a demand for money which has had scarcely any parallel
since 1847. To meet this heavy demand, the Directors
were obliged to draw upon the reserve to the extent of
807,0001., and to avail themselves of the additions made to
the public and private deposits. The reserve of notes is
now, by this operation, reduced to little more than
4,6(N),0001. No stock, however, appears to have been sold,
as the Government Securities are stationary. The next
item that attracts attention is the falling off in the Bullion.
It is no less than 331,7381., thereby reducing the stock to
below 10,000.0001, or to very little above the amount held
by the Bank of France at the present moment. Were it
not that the payment of the dividends will reduce the Pri-
vate Securities, and that large arrivals of Australian gold
are daily expected to increase the Bullion, the present
appearance of these two items might not unnaturally cause
wane apprehensions. But under present circumstances
they need not ; though, taken as a whole, there have been
few returns published of greater significance as to the real
p mition of the Money Market.

The Rank Directors found themselves compelled yester•
day to advance the rate of discount from six to six and a
half per cent., a policy which the business of the week and
the position of the Bank, as indicated by the preceding
comparison, rendered imperative, but which was not
ad ipted until after a meat protracted discussion. This is
the first change in the present year. How many others
may follow, it is impossible to foresee ; but there is a vague
impression that the new rate will not be very long main-
tain ,41, as its purpose in checking the efflux of gold will
ROOll be answered. We do not feel sure that this may not
be the case, but we do feel sure that the activity of
the demand for capital, both here and on the Continent,
will maintain permanently high rates, and that we shall
have fewer fluctuations in the value of money in the cur-
rent year than in the last. It must be a considerable
time before the minimum falls to five per cent., however
areedily it may return to that of six, which has lasted
since the 18th of December.

Money has been in heavy demand the whole week.
Occasionally the pressure has been nnusuallly severe, par.
ticularly from houses engaged in some of the long foreign
trades, whose returns have been delayed. Indeed, we
should not be surprised to hear shortly of one or more
disasters from this cause, though, on the whole, the export
trade of this description has hitherto proved profitable.
The acceptances at maturity to-morrow are said to be ex-
tremely heavy, and the preparations to meet them have
to-day led to a full demand at the enhanced rates. The
market up to Wednesday morning was steady, the discount
houses soil joint-stock banks easily finding full employ-
ment for capital at the then Bank rate ; but in the course
of that day it become unsettled from an expectation that
an advance would be made by the Directors at their
weekly court the next day. This impression, though it
was n general, was sufficiently extensive to render the
market sensibly tighter and practically to increase the
value of money. Yesterday, when the change was actually
made, the market became more settled, though, as the
demand kept up, the complaints from commercial houses
of the onerous terms required were very great. The new
rate will certainly diminish the profits of trade, while
capitalists will derive the advantage of it ; and, therefore, it is
to be hoped it will not be long maintained. But it will,

TIIE PRESS.

we think, be followed by an easier market for a time. The
public will lend to the brokers and banks for the sake of
the better interest they will receive, in preference to in-
vestiug in Consols or steak. A good deal of the floating
capital in the commercial cities of the Continent, particu-
larly from the North of Europe, will be attracted here by
the seine powerful impulse. The Bank of England itself
will as soon as the dividends are released find its reserve
increased by repayments of loans and advances. So that,
though we anticipate an active demand during the whole
of the current month, with temporary periods of pres-
sure, the supplies will, on the whole, be more than
adequate to it; and there is a probability of Lombard-street
doing business on easier terms than the Bank- We are
the more inclined to take this view, because the arrival of
large amounts of gold from Aestralia cannot now be very
distant, and because the demand from the Bank of France,
which has been intensely active for so long a period, is
gradually abating, while the continental exchanges must
fed a powerful reactionary influence. There are certainly
a ember of adverse elements, more or less, in operation
which may mar or disappoint these expectations. (*old
may not come in from Australia to the extent anticipated,
the India and China demand for silver may require such
heavy purchases on the Continent that the public stock of
bullion here cannot increase, and our imports may possi-
bly become so heavy as to render the exchanges both with
America and Europe permanently unfavourable. All this
we readily grant; still we contend that the inure encou-
raging circumstances just pointed out are likely to domi-
nate the market for the present, thought it is quite possible
that some of the advantages which would ordinarily arise
from them may be neutralised by the adverse elements we
have briefly indicated.
The specie movements of the week have been of a very
important character. Indeed, they have been the primary
cause of the Bank advancing the rate of discomit. Within
the last few days there has been taken from the Rank for
export to France, Brazil, the ('ape, and the West Indies.
specie to the amount of fully half a million, while the
packet which leaves Southampton to-morrow will take out
no less than 788,6811. for India and Chins, of which only
7,0941. is in gold. The total export to all parts can
scarcely be less than ,500,0001. during the week. On the
other hand the imports have barely amounted to 43.2,000/.,
of which 80,000/. have come from Australia. With respect
to imports from Australia there are now five vessels due,
which will probably bring about 400,000/. ; and the first
steamer of the new mail line was due at Suez on the 2lth
nit., and if she kept contract time, telegraphic intelligence
of the amount of gold she has brought from Melbourne,
which she was to leave on the Pith of February, may be
expected about Monday. This vessel will, perhaps, bring
shout 300,0001., so that altogether there is at least
700.000/. of Australian gold now on its way hither, the
whole of which may probably arrive next week. With
regard to the Bank of France it is stated that the bullion
now held by that establishment amounts to nearly
10,000,000/., or nearly as much as the Bank of England
now holds, according to the return of last week, and that
the premium offered for purchases is this day to he reduced
from six to four per mille, and that when the stock has
increased to 12,000,0001. artificial purchases are to be dis-
continued altogether.

The English Funds, though weaker than last week,
have, on the whole, been characterised by steadiness. Now
and then a disposition to improve has been manifested,
but it was net supported; and the advance in the rate of
discount yesterday caused a decline of a quarter per cent, at
once. That, however, was partially recovered. Foreign
Stocks have been depressed, with one or two exceptions ;
and Railway Shares are fully half per cent. lower than this
day week.
Consols, which left off last Friday, at 93 9-19ths to
11-16ths for account, attained at one period to 93f to I,
which was the highest quotation of the week. They stood
at 934 tot yesterday, when the Bank advanced the rate,
and immediately afterwards declined to 931 to 11, the
lowest price of the week. When at this quotation some
very good buying took place, one party closing a specula.
tive Bear ttansaction to the extent of 100,01)01. This had
the effect of causing a rally, and the market finally left off
at 934 just. ltut, although a recovery was thus established
within a fraction, a good deal of apprehension existed as to
the effect to-day, Particularly as money is getting into
demand preparatory to the settlement next week. This
morning the opening price was 931 to 1 ; and they closed
at 931 to

Exchequer Bills are about lower than this time last
week. March bills par to 3s. prem. ; June, Os. to 2s. dis.
Railway Shares were well supported up to Wednesday.
On Thursday they began to give way, and yesterday they
declined from half to one per cent. in consequence of the
advanced price of money. But, as in the case of Consols,
there was a subsequent rally, so that, on the whole, qu Aa-
tions are almost a half per cent. lower than on this day
week. Great Westerns, however, are fully one and three-
eighths per cent. lower, Much of the depression in prices
has arisen from the lower traffics of the week ; still it has
not been attended by a disposition to part with stock.
French lines are all higher, and Canadian descriptions
have not been much affected by the events of the week,
though Grand Trunks had rather a heavy fall on Wed-
nesday.
In the Foreign Market attention has been principally
directed to Turkish and Mexican Stocks. The former are
lower, but the latter are about a quarter better, owing to
an alleged discovery of auriferous deposits in a tract of
country about to be sold to the United States, some of the
proceeds of which are expected to be transferred to the
British creditors of Mexico. Russian Stocks are heavy.
Joint stock Bank Shares remain flat, and the Dit;count
Companies are still depressed.
t. Miscellaneous and Mining Shares have scarcely shown
any movement.
The revenue returns for the year and quarter ending
April Ist, have been published. They have attracted very
little attention.

Ilittropolitan LEarlicts.

(Reported erclusivelp for "Tnic PRESS.")

CORN EXCHANGE—The present week's supplies of Eng•
lish wheat on sale here have been only moderate; yet the
demand for all kinds has been in a must uepressed state, and
in the few transactions reported prices have given way is to :!s
per quarter. Inferior foreign wheats have ruled in favour of
buyers ; but the finest qualities have niostly supported former
terms. Floating cargoes off the coast have ruled heavy. The
imports of foreign barley having been very large, that article
has met a dull sale, at 2s to 36 per quarter less money. Malt,
too, has been very inaetive, at barely late rates. Very large
supplies of foreign oats have come in, and the oat trade has
been in a depressed state, at is per quartet decline. Both
beans and peas have given way Is; and most kinds of flour
have been easier to purchase. 'I he imports from abroad have
been only moderate.
Esottatt—Wheat, Essex and Kent. red. 49a to 535; white,
505 to UBs; Norfolk and Lincoln red, 48s to 58s. Malting barley,
Us to 48s; grinding ditto, 2.38 to 31s distilling, 35s to 375.
Malt, 62s to 78s. Feed oats, 22s to 245; potato, 23a to 30s.
Rye, 34$s to 40s. Tick beans, 32s to 345; Harrow, 34s to 3;s;
pigeon, 38s to 41s. Grey peal), 35s to ;,7ii ; maple, 38s to 39s ;
white boilers, 37a to 41a perquurter. Town-made flour, 63s to
16s; country marko,3Bs to CM; householde,43‘ to 46e per
NtlOlbs.