The Press.
London, England, 1856-01-05 00:00:00

'Doug glarket atO

FRIDAY EVENING.
THE return from the Bank of England, published
this evening, for the week ending Dee. 20, shows
the following changes iu the position of that estab-
lishment compared with the return for the preceding
week :

Increase in Circulation
Increase in Public Deposits 41)11,179
Increase in Other Deposits
Increase in Government Securities 490,09)
Increase in Other Securities
Decrease of Coin and Bullion
Increase of Rest 15,451
l)ecrease of Reserve

Present circulation, exclusive of
Post Bills

This return is the last, and the most unfavorable
one, for the year 1855; and it will attract much
attention from the changes which it exhibits. For
the first time for some weeks the active circulation
shows an increase ; and having stated this, we have
mentioned the most favorable feature in the whole
document. The increase in the Public Deposits is ,
again considerable, but the aggregate is not sufficient
to enable the Chancellor of the Exchequer to dis-
pense with assistance from the Bank to enable him .
to meet the dividends payable next week. The .
amount of this item is 5,843,932/. ; in the corm•
sponding week of last year it was 6,695,4301. The
increase in "Other Deposits" is probably owing to
payments in anticipation of the last instalment of
the Turkish Loan. The decrease in Government
Securities, amounting to nearly half a million, is a ,
proof' that sales of Stock Lave been effected to that
extent with a view, probably, to increasing the item
on the other side of the account of Public Deposits.
The increase in " Other Securities " again represents
the extremely active demand upon the Bank for dis- ,
counts. This item now amounts to 19,777,860 L,
being within 200,0001. of the maximum of the year,
wlneh was on the 29th of September. The decrease
in the stock of bullion in the issue department is
220,130/. ; but if we deduct from that amount ,
18,528/. increase in the gold and silver coin in the
banking department, the net decrease is 101,6021. ,
a very considerable amount when it is remembered
that the decrease last week exceeded 300,0001. The
reserve has diminished no less than 481,3271., and
$ that extent the Bank's means of affording accom-
m ,dation is reduced. This reduction is large, and
it is in excess of the late addition 475,0301. notes
by which this item was increased a few weeks ago.
A very active demand for money has it-been preys
in; throughout the week. All the banks and
brokers have been full of bills, and the rates, espe-
cially on Monday and Tuesday, were heavier on the
general run of paper than at any period since the
last great monetary crisis. Yesterday somewhat
more ease wes apparent; and the commercial accep-
tinces falling due to day, the 4th, which were ex-
-ITsmely heavy, were, on the whole, exceedingly well
met.
It is reported that the advances made by the
of England on Monday amounted to more than
900,0001. This is believed to be true ; but it should
be explained that they were made not solely upon
commercial paper, but to a great extent upon the
scrip of the Turkish Four per Cent. Guaranteed
Loan, of which the last instalment but one of ten per
cent., or 500,004., was paid on Monday. The
greater portion of these securities are held by mem-
bers of the Stock Exchange; and., in point of fact,
the Bank of England paid the instalment for them,
and will derive a considerable profit from the opera-
tion.
The commercial paper discounted that day
has been set down at 400,0001. It was less on Tues-
day, and still less on Wednesday and yesterday,
though the discount-houses found employment for
all their surplus funds on those days. It is esti-
mated, that the railway calls payable during the
week have amounted to 200,0001. Considering, then,
the natural demand for looney at the end and be-
ginning of the year, the concurrence of considerable
railway calls, and of a loan instalment, besides the
demand for advances in anticipation of the spring
manufacturing trade, the tightness of the market at
this period is not very surprising, and it would
not have attracted much attention, if it had not
been accompanied by undoubted signs of diffi-
culty in some other respects. Two of these signs
are obvious. The first is, that the Government must
again become a large borrower of capital, probably
upon harder terms than those of the last loan ; and
next, that the position of the Bank in respect to its
essential ability to assist and support commercial
interests is, at the present moment, weaker compara-
tively than it has been for many years past. As to the
circumstan.es of the Government, they are just these.
The ordinary revenue of the quarter is, in round
numbers, 4,000,0001. below the income; and the
Chancellor of the Exchequer wili temporarily require
about 1,000,0001. from the Bank to enable him to
provide for the dividends payable next week, unless

166