The Press.
London, England, 1856-08-09 00:00:00

gloneg Slarket anb Qztg 4ntelligtrat.

FEIDAT EVENING.
THE return of the Bank of England for the week ending
the 2nd inst. shows the following changN compared with
that for the week preceding :
Increase in Circulation ..
Decrease in Public Deposits
Decrease in Other Deposits
Decrease in Government Securities
Increase in Other Securities
Increase in Bullion .. 44,088
Increase in Rest

Increase in Reserve

15,458

Bullion in Both Departments
Circulation, including Bank Post

___,
Bills
Considering that the Bank has not been purchasing gold
for the last three weeks, this comparison shows the present
return to be one of a favorable character on the whole.
The position of the Bank is strengthened in as much as,
while the Reserve and Bullion esch show a small increase,
its own liabilities to depositors and bill holders have been
largely diminished, whilst its accommodation to trade in
the shape of discounts and advances has greatly extended.
These discounts and advances show the magnitude of the
demand for money. It is probable that an equal amount

has been lent in the present week; thus the Bank is
proved to have been instrumental in maintaining the rate
of discount at a maximum of four and a half per cent. in
the commercial market, in the latter portion of the past
fortnight, during which there has been more pressure
and less liberal supplies in the open market. The retire-
ment of deficiency bills, with the sale of a moderate
amount of stock, probably has supplied the means for
extending this accommodation. The Government deposits
consequently are lower, notwithstanding the current
revenue payments. The other items in the return do not
call for remark.

The state of the Money Market is just now a subject of
considerable perplexity. With a season most propitious
for the growing crops, and a prospect all but absolutely
realised of an abundant harvest not only in this country
bat throughout Europe, with the granaries of the East, of
Canada, and the United States full, and ready to transfer
their stores into our warehouses, in fact, with every secu-
rity, as far as supplies are concerned, against the evils of
dear food, the prospects of a dear money market are
almost as apparent as they were last September.
To make this state of things still more anomalous
we have a thriving home trade, and a foreign commerce
almost fabulous in amount, and, what is more, our manu-
facturers and producers, though paying high ;vices for
raw materials, are deriving good average profits. The
population, too, is well employed at wages that are remu-
nerative. We are at peace, and, under all circumstances,
we seem likely to bear our national and local charges during
the rem. iatler of the year with comparative ease. With
such a combination of favorable conditions, how is it that
money, instead of becoming cheaper, is rising in value—
that the best commercial bills in the open market cannot
be discounted under four and a half per cent., and that
next week we are threatened with an advance to five per
cent.? Such having been the state of the market during
the last few days—a condition following upon a sudden re-
appearance of tightness as we described in our last—the
inquiry is very natural. It is not, however, quite so easy
to answer without ping into more detail than we have
apace for; but we may suggest one or two points which
will help to elucidate the apparent mystery. In the first
place there is a good deal of political distrust in moneyed
circles. There are one or two of the questiors left un-
settled at the Paris Conferences in respect to the execu-
tion of the definitive treaty of peace which seem to justify
this feeling. The concentration of the British fleet in the
Black Sea with a view to hasten the operations of the
Russians in evacuating the islands at the mouth of the
Danube, the unsettled state of Spain, the embarrassments
of the Italian question, and some other matters unneces-
sary to specify, constitute one motive for political distrust,
exaggerated, it may be, but still of easily-appreciated in-
fluence. Another point which still adversely affects the mar-
ket is the financial position of our neighbours the French.
They are outbidding us for gold, and absorbing the greater
portion of recent supplies to support their own commer-
cial and speculative fabrics, the most important of which
appear to British capitalists unsound and dangerous.
Besides, we are ourselves sending gold away, especially to
northern and some parts of central Europe, to pay for the
silver we require for India and China. From these two
causes the precious metals are draining away to an amount
really alarming to those timid minds who, notwithstanding
the evidence of facts, have but little faith in the pro-
ductive yields of Australia and California, and less in
the competency of our trade to pay for them. The market
is thus oppressed with apprehensions that lead to prepara-
tions for good reserves against the time when the Bank,
in order to protect its bullion, may be compelled to force
the exchanges by putting up the rate of discount. We
have no doubt in the world that anticipations of this sort
have great practical influence at this moment ; and that
there is the more readiness to act upon them seeing the
immense profits that have been derived in the last year
and a half during which discounts ruled high. The market
is thus, involuntarily it may be, but still without the
slightest compunction, tightened by the leading establish-
ments from consideratious against which all general or
political reasoning is useless. Lastly, we have the fear
of undue speculation in our own country. The return of
peace, and the prospects of a good harvest, have been made
to do good duty in supportingthis fear. We hope advantage
is not taken of these blessings to an undue extent in order to
keep money at four and a half instead of three per cent. ; but
a suspicion certainly has, for some weeks past, been lurking
in the minds of a good many persons in the City that the
expression given in certain organs to alarms against a
speculative mania, has not been altogether without an
interested view to some such result. The evil sought to
be avoided will most assuredly be precipitated the moment
such impressions ripen into conviction. But we on y refer
to the tact, as indicating a sentiment in commercial
circles that, under existing circumstances, and with
existing prospects, money is at an unnatural price when
higher than four and a hall per cent ; and that trade will
not endure to pay more. Such, so far as we can see, is
the actual state of the market, and these are the causes
of our perplexities. Our readers can judge quite as well
as ourselves whether the points indicated are adequate
reasons for the change whi -h has taken place during the
last fortnight, and also whether the mar Set is likely to re-
main much longer in its present condition. We think
the explanations ; igned are sufficient to account for the
present tightness; but we are also of opinion that, under
existing circumstances, a return of ease may be expected
in the course of three or four weeks.

The specie imports have been inconsiderable this week.
They amount only to 271,000/. from the United States,
the greater part of which has gone to the Continent. A
sum of 500,0001. has been received from Constantinople
and taken to the Bank. Nothing has yet been he. r I of
the Royal Charter, now due from Melbourne, with bt •
tween 400,0001. and 500,0(X)l. on board. The silver sent
to India and China by the Peninsular steamer on Monday
Amounted to about 662,0001.

Varogolitan V

Renorted tschisiveli for "THF.Passe.")

CORN EXCHANGE—lncreased supplies of English wheat
have been on sale this week. The tine weather fir harvest
work, and the steady influx of foreign grain, have produced ex-
treme heaviness in the demand for all kings of wheat of home
pro Luce, and prices have given way from Ifis to 125 per quarter.
In foreign wheat next to i.othing has been doing, at a fall in
value of 10s per quarter. Floating cargoes of grain have been
very dull and drooping. The few samples of barley on show
have found buyers, at full quotations. In the slue of malt we
have no chat ge to report. The oat trade has ruled heavy. at 6d
to is per quarter less money. Both beans and pea.; have fallen
Is to to per quarter, with a heavy demand. New white peas
have rfalised fais per quarter. Flour has been excessively
heavy, at from 4s to us per sack less money.
Ettousit—Wheat, Essex and Keut red. 58s to 685; white
585 to 795; Norfolk and Lincoln red, 53s to 58s. Malting barley'
to 455; grinding ditto, 365 to 395: distilling, 39a to 425.
Malt, els to 775. Feed oats, 24a to 275; potato, 20. to 30a•
Rye, 40s to 42a. Tick beans, 36s to 39.; Harrow, 3its to 41s
pigeon, 40s to 445. Grey peas, 36a to 405 ; maple, 40s to 445;
white boilers, 49s to 46s per quarter. Town-made flour, 6213 to
645; country marks, 45s to 47a; households, 30s to 52a per
2tiOlbs.

ARRIVALS THIS WEEK.
Wheat. Barley. Malt. Oats. Flour.
.)t.O .. 434) oGJ
Irish
Foreign.. 14230 .. 237 U .1 18340 2240 Ms.
-- aka,

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