The Press.
London, England, 1857-01-17 00:00:00

Illontg glarket nab ditg :11tttiligence.

FBIDAT EVENING.
THE return of the Bank of England for the week ending
the 10th inst. shows the following ci.anges compared with
that for the week preceding :
Increase in Circulation
Decrease in Public Deposits
Increase in Other Deposits 548,149
Decrease in Government Securities 86,990
Decrease in Other Securities
Decrease in Bullion
Increase in Rest
Decrease in Reserve

Bullion in Both Departments 10,180,4134
Circulation, including Bank Post
Bills 20,273,450
The most important changes shown by this comparison
have arisen from the payment of the dividends, and the
repayment of advances made by the Bank during the last
few weeks in anticipation of the dividends. The Private
Seemities are now reduced to 16,342,012/., being about
1,100,000/. less than they stood at in the corresponding
week of last year. The Bullion, notwithstanding with-
drawals to pay for silver bought upon the Continent, only
shows a nominal decrease. It is understood that con-
siderable amounts in coin were received back from Ire-
land in the week embraced by the return, and this will in
part account fur the insignificance of the reduction. The
Reserve is less, but this is attributable to the dispersion
of the dividends. Ou the whole, the comparison is not
unsatisfactory, although the notes hare now shown a

SATURDAY,

considerable diminution for three weeks in succession.
This progressive fulling off will materially assist our compre-
hension of the policy of the Directors lust week in advanc-
ing the rates upon loans on stuck from six to six and a
half per cent.

Notwithstanding the dispersion of the dividends, the
Money Market has felt all the week rather acutely the
effect of the Bank policy last Friday in advancing the rate
for loans upon stock from six to six and a half per cent.
That policy was adopted, as we now understand, for a
double purpose. One was to restrain the operations of
parties desirous of borrowing money upon the security of
stock in order to buy gold to send to the Continent ; and
the other with a view to check speculation for an advance
in the English funds where carried on upon borrowed
capital. It cannot be said that either of these results has
been actually accomplished. As to the first, the whole, or
within a mere fraction, of the Australian gold which
arrived last week, amounting to 320,0001., was bought and
sent to the Continent; and as to the other, the effect has
been only partial. Money can still be borrowed for both
purposes. As to the effect upon commerce, it certainly
has been injurious. It has virtually advanced the rates
upon good mercantile bills a half per cent., and created
apprehensions as to the future which have caused much
embarrassment. Yet along with this state of things the
supply of capital has been ample. Money to any amount
could be hail on good security, provided the price required
was paid. Indeed, such large amounts of capital have
been placed in profitable employment during the week,
that some of the banks have found themselves rather
pressed, and they have been selling Consols and Exchequer
Bills, thus neutralising any tendency to improvement
which the public securities might otherwise have mani-
fested. Under these circumstances it cannot be said that
the disposition of the market has been satisfactory ; and
few persons are sanguine enough to expect it to be much
better next week. Yet, apart from these conditions, there
is every element favourable to improvement. The difficul-
ties with Russia are arranged, and the Neufchatel question
is virtually settled ; and though the Persian and Chinese
disputes attract a great deal of attention, they are not at
present of sufficient magnitude to create much anxiety.
At the same time it must be admitted that their conclusion
would be t'elt as a relief. Besides, there is some reason to
believe that the Government contemplate a large reduction
of taxation by lowering the income tax to 7d. in the pound,
as well as a considerable diminution in the naval and
military expenditure. Changes of this sort, by strengthen-
, ing the resources of the people, will enable them to employ
their money reproductively, and thus favourably affect the
commercial value of capital, and so influence the price of
securities. But, notwithstanding these prospects, things
at present are unsatisfactory. Not money only, but every-
thing else is dear. To-day there was no improvement, anti
the week seems likely to close gloomily.
Letters from Paris indicate an intention on the part of the
authorities to permit the capital of the Bank of France to
be increased. The proposition finds favour in Paris, and
it has had a good effect upon Rentes and shares ; but the
improvement to which it led was speedily checked by the
state of the English money market. Trade is rather
improving.
The specie imports during the week have been small.
They are only about 120,000/., of which between
80,0001. and 90,000/. have been taken for France.
The West India packet brought 179,0001. to-day, thus
bringing up the week's imports to 296 ,000/. We have no
further arrivals from Australia, and none are due till about
the end of the month. Meanwhile the demand for silver
has been increased by the East India Company having
lowered their rates of exchange, and its value hasincreased
Id. per ounce. Large orders have been sent to the Conti-
nent, for which gold will be withdrawn from this country
in order to export to India and China by the packet
leaving Southampton on Tuesday. The over-due silver
from Mexico, winch is valued at 600,0001., is expected to
arrive by the packet due on the Ist of February.
The excha►ges continue rather adverse, though they
have been a little firmer on France and Italy.
Considerable investments have been made during the
week in English Securities, particularly in Reduced and in
the New Three per Cents ; but little or no effect has been
produced by them upon the value of Consols. The general
disposition of the market however has been good, though
stock has been less firmly held than might have been ex-
pected, owing to the causes already explained. Last
Friday, before the change made by the Bank Directors,
Consols were firm at 91f, but they declined to 941 to I.
This has been the highest price of the week. Occasionally
they have stood at 931 to 91. Yesterday they left off at 91
exactly. The market has thus been steady. The tendency
to improve was arrested by the supply of stock, while any
disposition to recede was checked by investments. To•day
Consols opened at 94 to I, anti closed pretty firnily at 93f
to 94.

Exchequer Bills were rather firm at last week's prices
until \Vednesday, when they declined 25., being quoted at
2s. dis. to 2s. prem. There has been no alteration since.
Itusiness in the Railway Market has for a great part of
the week been restricted by the settlement which com-
menced on Tues.lay and terminated yesterday. Prices
have tended upwards, though there is no great change tore-
port. Yesterday there was a decided improvement in the
early part of the day, but it was almost completely lost be-
fore the close of business. Reports were circulated that
the dividend upon Great Western Stock would be at the
rate of only three per cent. per annum ; and they caused a
fall of nearly one per cent., from which there was only a
trifling recovery. To-day there was a disposition to ope-
rate for higher prices; hut, the supply of stock being con-
siderable, it was checked. Grand Trunk of Canada stock
was in great favour, at higher rates, and this was the only
feature in the market, except the downward tendency of
the Belgian lines.

The Foreign Market has not presented much interest.
Quotations are generally steady.

Maw. & Rttrdm.
Belgian East. J.
Dutch Rhst.ish
East Indian....
Gt. Indian Pen.
G.W.of Cau.,S h.
Lyons dt Genera,
Madras ..1
Na.* Lge.(w.in.).
Nrthrn.offrucc.
Norw. Truk. Pri.
Paris & Lyons..
Paris & Orleans
Parish Rouen..