The Press.
London, England, 1856-09-06 00:00:00

Lllariat anb (Eitg

FRIDAY EVRNING.
THE return of the Bank of England for the week ending
the 30th ult. shows the following ci.anges compared with
that for the week preceding :

Increase in Circulation .. £232,929
Increase in Public Deposits
Decrease in Other Deposits
Increase in Government Securities
Increase in Other Securities
Decrease in Bullion
Increase in Rest
Decrease in Reserve
Bullion in Both Departments
Circulation, including Rank Post
Bills
This comparison reveals several important changes. As
far as regards the Bank, it shows that the demand for
money last week was more active than was supposed, inas-
much as the loans and discounts are upwards of 1,000,0001.
more than in the previous week. The money thus put
into circulation caused a diminution in the Reserve, not-
withstanding the large addition to the Government
Deposits, though not one of an excessive character, con-
sidering that private depositors withdrew large sums, an 3
that a moderate addition has been made to the Govern-
ment Securities. The Bullion is again lower, not, how-
ever, to an extent to lead us to believe that resort will be
had to higher rates of discount. The Government de-
posits having been increased by the payment of the
instalment of 500,0001. upon the loan, now amount to
nearly 6,000,0001. Altogether, the return is the least
favorable of any for the last three or four weeks, but
there is nothing in it to justify serious apprehensions
of money being rendered dearer in consequence of it.
At the same time, there is enough in it to render caution
necessary.

When we lately wrote upon the prospects of the harvest,
and their effect upon the value of money and the price of
securities, bad weather had been prevailing, followed by an
advance in corn. Money, however, was easier, while the
public funds and securities in general were manifesting a
tendency to higher rates. During the present week these
conditions have been partially reversed. We have been
visited with weather highly favorable for the progress and
termination of the harvest; but money has been increas-
ing in value, and securities of nearly every description have
been falling in price. A position so anomalous does not
often occur at this period of the year; but to a certain ex-
tent it is capable of satisfactory explanation, and in the
course of our remarks upon the topics involved in the con-
si.leration we shall suggest a few points that may assist iu
the solution.
The weather has been all that could be wished to relieve
anxiety respecting the character of the harvest. It has
been fine and genial, with a sharp dry air, accompanied
by a warm temperature. The crops have been matured not
too rapidly, yet effectually; and though labour has been
scarce, they have been safely gathered in over fully two-
thirds of the entire surface of the country. The condition
of the young cereals has, at the same time, been improved,
while the testimony of independent reports is highly satis
factory as to the amount of the yield. Under these cir•
cumatances the market in London has given way to the
extent of lOs. per quarter; while some of the provincial
markets have declined still more. Ten days more of the
present weather will place the entire harvest beyond ap-
prehension; and as there is no immediate prospect of
foreign supplies diminishing to any great extent, notwith-
standing the Peninsular demand and the prohibition of
exports from some parts of Italy, we do not see how prices
can be maintained at the present average.

Although money has been in good supply, the general
character of the market all the week has been one of til:ht-
nese, attended with slightly advancing rates. Yesterday
and to day, the 4th and Oth, being the days on which in
every month vast sums have to be provided, in order to
tetire the commercial acceptances falling due, there was
naturally an active demand ; and rates, in the mass of
cases, have been barely under the Bank minimum. The
reserves in Lombard-street, though good in the aggregate,
have nevertheless been reduced, while next week a renewed

861

demand is probable from the approach of the period when
the final instalment upon the loan, which is twenty per
cent., or 1,000,00 W., must be paid, in conjunction witt. the
Stock Exchange settlements in Consols, Railway, and
Foreign Securities. It must be remembered, too, that the
time is at hand when there will be an additional circula-
tion of bills from the manufacturing districts for which it
is usual for certain houses to provide largely beforehand.
These circumstances, incidental to the period, naturally
affect the market to an extent that may temporarily coun-
teract the tendencies of the corn markets. Besides, during
Wednesday and part of yesterday, al prehensions were felt
lest the Bank, in order to protect its bullion, should add
one-half per cent. to the present minimum rPte of discount.
This assumption—for it proved to be nothing more—arose
from the fact of some amounts of gold having been taken
from the Bank for the Contineut. It was certainly not jus-
tified by the previously published accounts of the Bank, nor
by the alleged reduction in the stock of bullion ; but it
produced a tangible effect upon the market, from which it
cannot yet be said to have recovered, for all such impres-
sions, whether founded or otherwise, generally last a con-
siderable period. On the whole, then, the present dispo-
sition of the Money Market is not one to encourage the
hope of much ease for the next fortnight, though we do not
anticipate such an amount of inconvenience as would be
caused were the Bank next week to increase the rate of
interest. We do not expect any such policy on their part;
but we do anticipate that the minimum value of money
will remain at four-and-aquarter and four-and a-half per
cent.

The specie imports during the week have amounted to
nearly 1,100.0001. The exports have not been less than
950,0001., including those to India and China, consisting of
silver to the extent of 808,5701. It is probable that of the
balance 100,0001. may remain in this country. But there
seems to be a good deal of uncertainty as to our power to
maintain our stock of gold much beyond the existing
average at the present rate of import, in consequence of
the apparently permanent necessity to buy up silver on
Indian account, for which gold is paid, and the demand
from France, caused by the change in the metallic circu-
lation, and the drain upon Paris for material works in
different parts of Europe The gold production in
Australia is increasing, however; 60 that, with supplies
from that source in conjunction with supplies from
California, it is possible we may, while supplying the
whole Continent with the precious metal, increase our
own stocks. Still the import is at present too irregular
to enable us to calculate upon its amount with certainty at
any given period. When the Australian mail packets,
which commence running next month, shall have become
so effective as to insure a quick periodical transit from
that quarter, we shall have better data to guide us. The
irregularities which now perplex us will be diminished ; and
the supply and demand will be ascertained with the same
ease and accuracy as those of any other commodity.
Until this period arrives our stocks must necessarily be
subject to more or less fluctuation, liable to be increased
or diminished by special causes, such as are now in full
operation. But in the meantime there is nothing in the
course of trade, the tendencies of speculation, or the
financial position of the great European money markets.
to lead us to expect that the stock of bullion in the Bank
of England will per.nanently fall below its present amount.
We have again to report a slight decline in Consols.
On Friday they closed at 951 for account exactly, and
last night at 94j to 95. The decline consequently is a
quarter per cent., an amount which must be considered
as extremely moderate, or rather as very small, consider.
ing the influences by which the market has been affected
during the week. The opening price this morning was
941 to 95 ; and they remained et that quotation the whole
day, with a quiet but pretty firm market.
Foreign Securities are about the same as this day week.
Business in them has been uniformly languid ; and perhaps
there are fewer transactions recorded in them during the
last seven or eight days, than within the same length of
time at any former period this year. Quotations appear
to be solely maintained by the fact that any thing like a
fall would be sure to bring in buyers, particularly of the
more approved stocks. Holders therefore remain firm.

In Railways there have been considerable fluctuations,
which have resulted in a decline of from lOs. to 20s. upon
last Friday's quotations. Want of business, and an unde-
finable sensibility as to the position of the Money Market,
may be ascribed as the principal causes of this change.
Traffics keep up with great regularity, and there is no
abatement of public confidence iu the value of these secu-
rities ; but against this must be placed the circumstances
just named, and the great rise which wok place a short
time ago—a rise sure to be followed by a reaction of
more or less severity. That reaction is in progress now,
and it is doubtful whether it will be checked before the
termination of the present account. Caledonians have
partially recovered the extreme fall noticed last week, but•
they are still heavy. To-day there was a marked improve-
ment in the general tone of the market, but only a pealed
recovery in prices.
Joint•atock Bank Shares have sustained a shock by the
suspension of the Royal British Bank, and moat of them
are lower than this day week, but not to any great extent,
unless it be Western of London, which have declined
one per cent. Ottoman Bank Shares remain at about dis.
Miscellaneous Shares are inactive, with no change in
quotations. Crystal Palace are now at 2to

The Royal British Bank suspended payment on Wednes-
day ; and its affairs will have to be liquidated in the way
pointed out by law. This establishment—the connections
of which were chiefly among middle-class tradesmen and
people in a small way of business—acquired a fair repu-
tation during the earlier years of its short career; but
lately numerous unsatisfactory reports have been in circu-
lation respecting its condition, which precipitated the final
catastrophe. Mismanagement and neglect of the ordinary
principles of banking, as understood by the cautious ex-
perience of the present day, combined with irregular ad-

Antw. d Rttrdm.
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Dutch Rhenish
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Paris d Orleans
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