The Press.
London, England, 1857-01-24 00:00:00

lout, Varket ad Citg

FRIDAY EVENING.
Tots retina of the Bank of England for the week ending
the 17th inst. shows the following cuanges compared with
that for the week preceding:—
Increase in Circulation
Decrease in Public Deposits
Increase in Other Deposits 431,217
Increase in Government Securities 37,300
Maltase in Other Securities
Decrease in Bullion
Increase in Rest

Decrease in Reserve
Bullion in Both Departments
Circulation, including Bank Post
Bills 20,316.129
By the falling off in the Bullion here indicated the
stock in the Bank is reduced to about half a milli.' less
than when the rate of discount was fixed at six and a
half per cent., or one•half per cent. higher than the pre-
sent terms. The Private Securities, however, were con-
siderably higher, and there was a more urgent demand
for money; consequently, though the bullion is diminish-
ing every week, it may possibly be premature to anticipate
a return to the six and a half per cent. rate. The policy
of such a movement will be governed by the extent and
apparent objects of the demand next week. The notes
in reserve also show a continuous decline, which is likely
to attract observation. The position of the Bank in
relation to its means of assisting the trade of the country
is thus becoming weaker. The decline in the amount of
the Public Deposits is owing to the payment of the
dividends; but. on the other hand, the Private Deposits
hive increased to a greater extent. Regarded as a whole
the present comparison is undoubtedly calculated to sug-
rat somewhat unfavourable impressions as to the prospec
tire value of money.
The Money Market, which was in an unsatisfactory con-
dition last week, opened this week rather gloomily from
apprehensions of higher rates being required. This feeling,
which previously existed, induced many houses to discount
larger amounts eight or nine days ago than they actually
required in order to be prepared against a possible ad
vance. It was also the same with the dealers upon the
Stock Exchange The absorption from the discount•
houses and banks, produced by this simultaneous demand
on the part of the great borrowers, naturally caused a sense
of tightness in the supply, and was the ciuse of a very de-
pressed tone on Mooney. But it was found before the even
ingot that day that all the borrowers had overshot the mark.
They discovered that the public had increased their sup-
plies at call ; that the discount market was relaxing instead
of hardening ; and, in fact, that the demand, which it was
thought would become heavier, had been virtually satisfied
last week. The effect of this state of things in the current
week has been not a little singular and even anomalous.
The borrowers have become lenders, in some eases at a
slight disadvantage to themselves ; and thus, at a period
when opinion indicated a probable return to discounts at a
minimum of six and a half per cent., practice virtually
lowered it from six to five and three-quarters per cent.
Speculation, therefore, proved at fault, anti the public have
derived the advantage. This state of things continues.
Yesterday there was a pretty confident expectation that the
Bank Directors would put up the rate. Bets of three to
one were made upon it in the Stock Exchange by some of
the most experienced and best informed members. But,
so far from this proving the case, the Court not only made
no change, but took less time than usual for consideration.
The minimum, consequently, remains at six per cent. for
bills and at six and a half per cent. for loans on stock.
All this is satisfactory; but it will be inferred from the
description we have given of some of its causes that we
scarcely expect it to last. We expect money to be dearer
in the Stock Exchange next week, and we are convinced
that but little business will be done in the discount market
under six per cent. Gold is leaving the Bank, and it is
not replaced except by trifling amounts of coin returned
from Ireland; the exchanges are no better; silver is still
required for India and China; and the Persian and
Chinese difficulties are threatening toinvolve us in vast ex-
penses. In a few weeks, too, the public will have com-
pleted the investment of their quarterly and half yearly
dividends, and they will be diminishing their deposits,
thus affecting the reserves of the different banking estab-
lishments. And, further, we look for a very active spring
trade, which will create a constant demand for capital.
From these, and some anslagous considerations, into which
we have not space to enter, we believe that money cannot
go below six per cent. ' • and the same considerations incline
us to think that the moderation in the demand, which has
been the chief feature in the business of the week, is
only an incidental, though of course a gratifying. circum-
stance.
Paris letters speak with more confidence of an intention
nn the part of the Government to authorise the Bank of
France to increase its capital to 8,000,0061. The improve-
ment in Rentes and shares which this expectation was the
means of creating has been, however, but partially
maintained. The bullion in the Bank of France is said
to have fa lea off about 400,0001. since the last monthly
return.

The specie movewents of the week have possessed con•
eiderable importance. About 100,0001. have been taken
from the Bank for transmission to the Continent in

ilk,