The Press.
London, England, 1856-05-24 00:00:00

Dlong Market an 4 it Intriligence.

FRIDAY EVENING.
THE return of the Bank of England for the week ending
the 17th inst. shows the following changes compared with
that for the week preceding :

Decrease in Circulation £455.565
Decrease in Public Deposits 41,301
Increase in Other Deposits
Decrease in Government Securities 1E43.236
Increase in Other Securities
Increase in Bullion . 23.283
Incrrase in Rest ....
Increase in Reserve

9,801,80

Bullion iu Both Departments
Circulation, including Bank Post
Bills
This comparison is more favorable than any for the last
month, although it is not perfectly satisfactory in all
respects. The addition to the Reserve is its nest feature.
It is certainly considerable ; but the increase in the stock
of bullion is very small. The large accession t.) the
amount of Pri►ate Securities is owing partially to advances
made by the Bank for the deposits upon the Loan, and
partly to our resumption of discount operations. Most of
the advances made in anticipation of the Loan will be re
payable next week, and that operation will favorably affect
this item as well as the Reserve in the next return.
There is nothing to call for special remark in any of the
other items of comparison. The reserve of notes and coin
amounts to 4,730,9'251.

Two events of considerable financial importance have
occurred in the course of the present week. The first is,
the negotiation of the new loan of 5,0011,0001., and the
second the equalisation of the Bank's rates of discount on
long and short bills to a uniform minimum of six
per cent.

The contract for the Loan was taken by Messrs.
Rothschild and Sons, on Monday, at the Government re-
served price of 93, a proposal from the contractors to take
it at 0:11 having been withdrawn as soon as the minimum
fixed by the Chancellor of the Exchequer was known. It
was elicited, in the course of the explanations which were
made, that the Government have no expectation of being
obliged to resort to a new issue of Exchequer Bills or to fund
any portion of those securities, but that some change in the
rate of interest might possibly be made in order to main-
tain their credit in the market. It was these and some
analagous considerations which induced the contractors so
readily to withdraw their own offer ; and it is considered that
an excellent bargain has been made for the public. The
deposit of 101. per zent., or 500,0001., constituting the first
payment on account of the Loan, was paid into the Bank of
England to the credit of the Government yesterday ; and
it is a circumstance well worth recording that the applies
tions for allotments in ►he Loan sent in to Messrs. Roths-
child amounted to the enormous aggregate of 40,000,0001.
The deposits actually paid in with the applications were
4.000.0001. The allotments were generally made in the
proportion of one tenth upon the sums applied for: and the
surplus deposits were returned on Tues.lav and Wednes-
day. On Monday evening the Chancellor of the Ex
chequer made his financial statement. It was bald slid
inefficient in all popular requisites, and by no means likely
to confer parliamentary reputation upon the Finance Minis-
ter; but, consisting of a mere debtor and creditor account,

THE PRESS.

ending with a certain deficiency to he made up by borrow
ing. it had a certain air of simplicity which, in the present
circumstances of the country has protected it from harsh or
hostile criticism. The following table comprises the whole
of the Budget for 1836-7 :
Estimated net income from reveime £117,132,000
Estimated net expenditure

Net deficiency 510,373,000
On the other side of the account credit is taken for the
balance of the last loan remaining in the Exchequer on the
31st March, amounting to 1,500,0001.; for the new loan,
5,000,0001.; for a vote of credit, 2,000 0001.; and for a con-
templated issue of Excheqner Bonds or Bills, of
2,000.0901.; making altogether 10,500,00 W. The following
is, then, the result :
Receipts from all sources..
Expenditure

Leaving a surplus of .... £127,000
Such is the Budget produced by Sir Cornewall Lewis; but
we aie bound to add that no reliance is placed upon his
estimate of the sums which will be necessary to bring our
forces home, and to wind up the miscellaneous transactions
cr nneeted with the termination of the war. The excess of
1'27 000/. may, therefore, be increased ; but it. is tar more
probable that it will be converted into a deficiency of five
or six times the amount.

The other financial event which has occurred this week
has been the resolution of the directors of the Bank of
England to reduce the rate of discount on bills having
more than sixty days to run from seven to six per cent.
By this resolution we have again a unif3rm rate, six per
cent. This measure, considering the state of the Bank's
reserve, has perhaps been adopted rather early ; but it was
partially forced upon the court by the rapid transfer of by
no means the worst portion of their discount business to
the Lombard street houses. To some extent, therefore, it
may he regarded as a sign that money is thought likely to
become cheaper soon ; but the ratio in which the reserve
at the command of the Bank has increased during the
last fortnight does not at present afford any very strong
corroboration of such opinions. Certainly bullion is flow-
ing in, the Foreign Exchanges are favorable, and the trans-
mission of coin to the East is being gradually reduced;
but, on the other hand, there are a number of foreign and
domestic schemes in the market, the Bank of France is
still a heavy purchaser of bullion, and the prospects of a
good harvest are not yet very definite From such consi-
derations as these—and others might be added—we deduce
the conclusion that two or three months at least must
elapse before we can reasonably expect the value of money
to fall to five per cent.
At the same time, money has been easy all the week, and
there has generally been a strong tone about the market
which has given a considerable impetus to some branches
of commerce. The export trade generally is upon the
increase and the manufacturing districts are all actively
engaged in production. The arrivals of specie have been
large. They amount, altogether, since last Saturday, to
637,99 W. About 1,10,0001. have gone to France ; 150.0001.
into the Bank of England, and the remainder is in private
hands. The exports have included 639.2421. to India and
China; of this amount 331,321/. was in silver, and the
greater part of it was allowed for in our report of specie
movements last week. It is evident, therefore, that we
are retaining by far the greater part of the gold imported
both from Australia and America; while the natural opera.
tion of the exchanges is bringing it over from the com-
mercial cities of the continent of Europe.
Consols have improved to some extent since our last,
partly in consequence of the explanations made at the
Treasury and in the House of Commons on Monday, and
partly in consequence of the easier condition of the Money
Market. The advance actually realised up to last night
over last Satnrdly was only three•eightha per cent. ; hut
on several occasions daring the week it amounted to five.
eighths. To•da3 they opened at 914 to 4, and closed at
944 tot for the account not very strong.
The scrip of the new loan has been as high as 2 prem.
To-day it closed of to 2 prem.
The Railway Market has upon the whole been firm, and
prices have generally advanced ; but in some descriptions.
especially Great Westerns, there has been a decline.
Nearly all the foreign lines, except Northern of France,
have improved ; but the new foreign lines—such a. Duna-
berg and Lombardo Venetian—have shown very little
movement.

Foreign Securities in general have been rather active,
hut with no particular change in prices except in Buenos
Ayres, to which there has been a considerable rise, though
few dealings.
Exchequer Bills, which last week were at lns. dis., have,
in consequence of the assurances given by the Chancellor
of the Exchequer, stated above, improved to 4s. dis.
Joint-stock Rank Shares and Miscellaneous Shares have
presented no features worthy of special notice.
The Oriental Rank Corporation have declared a dividend
of 11. ss. per share for the half•year ending December.
This, with the previous dividend, is at the rate of ten per
cent: per annum.

The Western Bank of London will
on the 16th of June.

BRITISH FUNDS. Closing Prices.
OFFICIAL QUOTATIONS.
ond.iTuesd. Wed. Thurs. • Friday.
3 per Cent. Consols .... 374 4;'941 i 9711 C 944 j 941
Ditto for Account 94 194 193 j 91j ! i•lij I
i per Cents Reduced .... 92 j 93 j 93 24 11 4 931 3
3 per Cents
Long Annuities I I I 3 3-10
Rank Stock, 7 per Cent ;2144 4 1134 6 215 4 216t&e
Omni= I—i-1-I—j
Exch. Bills, ied.,June 10 4.1 6 54,1 4 d:3 id 4 14
IndISBOnds)(1,0001) 1 44 l ••• 1 41 s •"-

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